Supply chain reconfiguration in response to external shocks: Managerial decision-making in Swedish Multinational Corporations

Abstract

This thesis examines how managerial decision-making in Swedish multinational corporations (MNCs) shape reconfiguration of global supply chains in response to external shocks. Although there is existing research on supply chain resilience and risk management, empirical insights on how supply chain reconfigurations emerge, remain limited. Particularly in the context of small, export-dependent economies such as Sweden. A qualitative research approach was adopted, based on 10 semi-structured interviews with respondents in managerial positions with strategic responsibilities for supply chain operations within Swedish MNCs of various sizes. The findings suggest that supply chain reconfiguration is driven primarily by four interrelated factors: risk reduction, reevaluation of cost logic, geographic relocation and assurance of delivery reliability. Risk reduction constituted the main motive, where geographically relocation and a shift towards multiple sourcing were essential to maintain operations. Together with ensuring product quality and delivery reliability, risk was prioritized over cost efficiency. Among these, risk remained the primary factor impacting managerial decisionmaking in supply chain reconfiguration in response to external shocks. The study contributes empirical insights into supply chain management and partially challenges traditional ideas within transaction cost theory (TCT). The analysis reveals that under uncertain conditions, risk minimization is prioritized over cost minimization. In all, the study provides practical insights into how managers may prioritize and balance trade-offs in decision-making related to supply chain reconfiguration.