Organizational design in the context of supply chain sustainability: A conceptual model

Abstract

This paper presents findings from a study examining organizational design features used by organizations in pursuing their sustainable supply chain objectives. The research purpose was to gain a better understanding of the organizational design features that firms currently use or may use in the future. The results should encourage organizations to address design issues as they relate to overall supply chain effectiveness. The ever-increasing influences of the wider perspectives such as the pursuit of sustainability drive for industry consolidation/ rationalization and the need for responding to changing customer preferences may mean the conventional wisdom of organizing for success is increasingly becoming grossly inadequate, if not obsolete. There are numerous reasons why companies start to rethink about organizational design, organizational structure and its performance to attain a supply chain sustainability journey. Primary among them is to ensure compliance with laws and regulations and to adhere to and support international principles for sustainable business conduct. In addition, companies are increasingly taking actions that result in better social, economic and environmental impacts because society expects this and because there are business benefits to doing so. Given the dynamics of the current competitive global supply landscape, organizational design concerns are critical to sustained organizational success.

Keywords

• Organizational structure
• Supply chain effectiveness and performance
• Sustainable organization