Exploring efficiency and effectiveness in the supply chain ...

1 Exploring efficiency and effectiveness in the supply chain A conceptual analysis Benedikte Borgstr m J nk ping International Business School Box 1026, SE- 551 11 J nk ping Sweden Abstract Firms struggle for efficiency and effectiveness . Strategies involving collaboration between actors and integration of activity chains are reliant of factors that firms do not have direct ownership and control over. This has implications for strategizing, setting the goals and measuring performance. efficiency and effectiveness are often used to describe performance. From a resource dependence perspective efficiency is defined as an internal standard of performance and effectiveness as an external standard of fit to various demands (Pfeffer and Salancik 1978).

interdependencies within the supply chain as well as towards other supply chains. This is evident in the ramp-up phase of Volvo’s S80 model. Despite a trade-off where Volvo’s suppliers balanced between efficiency (through scale) and unique solutions they contributed to the supply chain …

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