Supply Networks as a Complex Adaptive System

Abstract Supply networks are theorized as complex adaptive systems. Interactions between the complex adaptive system and the environment lead to co-evolution, and what comes out of the co-evolution can affect what happens in the environment and the complex adaptive system. Through such dynamic interactions, supply networks emerge over time with no single entity (i.e., a focal company) orchestrating its entire activities. A focal company makes a strategic decision as to how much of that supply network to control. Beyond the realm of control and visibility, things simply emerge for the companies in a supply network. We apply these concepts to theorize the behaviors of supply chains and how supply networks may operate more resiliently through a jury-rigging process. Computational studies are conducted using Wolfram’s cellular automata and Kauffman’s NK model.