The Linkage Between Macro Logistics Capabilities and Micro Firm Performance Towards Framework Development for Supply Chain Performance Measurement

Technological advancements, increased globalization, political, social, and environmental concerns are changing the world we live in. Firms applying a global strategic management approach to enter a new country have to dynamically assess and align their performance objectives and micro capabilities with the changing macro logistics higher-order capabilities and resources at the regional or country level, and vice versa. Higher-order capabilities are present in a specific location and emerge over time as a result of systematic interactions across firms and institutions, whereas micro capabilities and performance objectives are firm-wide. Previous research on logistics and supply chain performance measurement hasn’t precisely addressed this macro-micro perspective with a global strategic management view. Furthermore, this aspect associating macro and micro capabilities and performance has been only projected with the help of case study-based empirical investigation within the previous research. To investigate the magnitude of this association, this research uses an integrative literature review strategy that includes a qualitative content analysis of the most important/cited supply chain performance measurement literature. With the help of a macro-micro supply chain performance measurement framework adapted from the supply chain performance measurement literature, the findings bring out the link between various macro logistics higher-order resources and capability elements (input) such as collaboration, knowledge sharing between logistics partners, transportation mode and energy efficiency and the strategic firm performance objectives and dynamic micro capabilities (output) such as sustainability and process innovation. It also extends framework propositions to guide future supply chain performance measurement research with a particular emphasis on global supply chain decision-making.