Toward a Theory of Multi‐Tier Supply Chain Management

Recent trends toward outsourcing and global sourcing have created longer, more complex and more fragmented supply chains. In this research, we aim to instigate a theoretical development of multi‐tier supply chain (MSC) management by adopting an inductive case study research design. Following a multiple case research design, we investigate three‐tier supply chains to develop a theory of MSC management. Each of the investigated supply chains consists of a buyer, supplier and supplier’s supplier. Based on the case studies, propositions are built concerning how MSCs operate. As an underlying methodology, we first conduct a within‐case analysis and then expand that analysis to the cross‐case context. The results show the impact that the dynamics of the MSC have on power balance, structure, interdependence and relationship stability inherent in MSCs.