The effects of management inertia on the supply chain performance of produce-to-stock firms

This article examines the impact of inertia on the management of the firm's supply chain operations and the effects it can have on a produce-to-stock firm's ability to respond to external market pressure and develop corrective strategies. The research methodology used is based on earlier Catastrophe Modeling that looked at inertia in organizational design, competitive pressure, and competitive response. The model demonstrates how latent variables, such as customer pressure and supply chain inertia can influence a finished goods supply chain management's response under various conditions. The model was tested and validated using questionnaire data gathered from a sample of members of the Council of Logistics Management. The model was used to estimate individual finished goods firm inertia response estimates. We incorporate these estimates in a brief examination of three produce-to-stock firms from the sample to give readers an idea of the usefulness of the approach in examining supply chain inertia.