Theories of Supply Chain Management Essay Example

s competitive advantage which is usually present in the organization’s possession of valuable resources (Wernerfelt, 1984).Transaction Cost Analysis or TCA The transaction cost analysis is another important theory seen to contribute so much to the development of practices related to supply management. Generally, Migdley (2003) have sent his particular theory to provide a means by which organizations could measure the relative performance of their individual dealers and the trading strategies that they make use of.

Knowledge-Based View or KBVUnder the knowledge-based theory, it is no longer the resources that play the important role in determining the success of the company. Rather, what is more important is the role of knowledge since these are generally difficult for their competitors to imitate and at the same time, socially complex, thus becoming a major source of their competitive advantage and superior corporate performance (Conner, 1991).