Operations and Supply Chain Management in a Turbulent Global Environment: Power, Institutional Dynamics, and Strategic Transformation

Author: O. El-Masri

Affiliation: Independent Researcher

Abstract

In the last ten years, Operations and Supply Chain Management (OSCM) has changed more than ever before. Global disruptions like geopolitical tensions, pandemics, energy crises, labour shortages, extreme weather events, and digitalisation have made businesses rethink how they plan, coordinate, and run production networks. Recent research (2020–2025) shows that resilience, sustainability, visibility, and digital integration have become key strategic areas in OSCM. This is a change from the previous focus on efficiency, cost-cutting, and lean principles. Companies are using new tools like predictive analytics, cloud-based collaboration platforms, digital twins, and integrated risk management systems to make their businesses more flexible, less vulnerable, and more sustainable. This article looks at OSCM from three different theoretical points of view: Pierre Bourdieu's theory of practice, world-systems theory, and institutional isomorphism. It is 3,500 words long. These viewpoints show that OSCM is affected not just by technical factors, but also by power dynamics, global disparities, institutional demands, and professional standards. The article examines five analytical domains based on a narrative review of literature published from 2010 to 2025, focussing on studies related to supply chain resilience, sustainability, digital transformation, and circular economy practices. These domains include the evolution of OSCM, the strategic significance of digitalisation and data, the integration of sustainability and ESG into supply chain processes, the influence of global production networks, and the institutional forces propelling convergence in global OSCM practices. The results indicate that OSCM presently constitutes a strategic, socio-technical, and political domain. Institutional pressures and professional norms are making businesses use more and more of the same technologies and management frameworks. Global production networks reflect core–periphery disparities in the global economy, affecting sourcing, environmental impacts, and value distribution. Bourdieu's perspective elucidates the impact of habitus, cultural capital, and symbolic capital on managerial decisions regarding resilience, risk, sustainability, and digital transformation. Institutional isomorphism elucidates the worldwide dissemination of "best practices," whereas world-systems analysis emphasises the geopolitical and economic frameworks that influence production and logistics. The article says that OSCM needs to include technology, governance, ethics, resilience, and sustainability in order to stay useful in a world that is always changing. Policymakers, managers, and researchers must take into account not only technical efficiency but also social justice, global inequality, environmental stewardship, and institutional legitimacy.

1. Introduction

Historically, Operations and Supply Chain Management (OSCM) has been about making production systems work better, streamlining workflows, and making sure that materials flow smoothly between companies. For many years, the main idea was to cut costs, use lean production, just-in-time (JIT) systems, and outsource work to other countries to get economies of scale. This way of thinking affected trade, the way people work, and logistics systems all over the world. The last five years, on the other hand, have changed this picture in a big way. Disruptions like the COVID-19 pandemic, global chip shortages, rising transportation costs, geopolitical fragmentation, environmental crises, and digitalisation have shown that traditional OSCM models are very weak. Companies learnt that being very efficient often meant giving up flexibility and resilience.

As a result, OSCM began shifting from a cost-efficiency paradigm to one grounded in:

• resilience

• agility and responsiveness

• data-driven decision-making

• sustainability and circularity

• collaboration and transparency

• human-centered logistics and ethical sourcing

This change makes us think more deeply about how OSCM practices start, spread, and change over time. Why do businesses all over the world use the same OSCM tools and stories, like "visibility," "digital twin," and "resilience"? How do power structures around the world decide where to put money into production, pollution, and logistics? How do professional identities and organisational cultures affect which technologies are successful?

This article employs three principal theoretical frameworks—Bourdieu, world-systems theory, and institutional isomorphism—to examine OSCM not merely as a technical domain but as a social, political, and globalised sphere of power.

2. Background and Theoretical Framework

2.1. OSCM: From Efficiency to Resilience, Sustainability, and Strategic Integration

Traditional OSCM literature emphasized:

• capacity planning

• inventory optimization

• quality control

• scheduling

• supplier selection and logistics planning

Lean manufacturing principles—originating from Toyota—encouraged streamlined processes, reduced waste, and minimized inventory. Globalization extended this logic across continents through offshoring and outsourcing.

However, recent events demonstrated that hyper-lean and highly dispersed supply chains are fragile. Firms now prioritize:

• multi-sourcing instead of single-sourcing

• higher safety stocks instead of minimal inventory

• regionalization instead of extreme globalization

• risk mapping and scenario modeling

• digital transparency instead of blind trust

This shift is supported by recent empirical studies showing that digital integration, diversified supplier networks, and proactive risk management improve resilience and long-term performance.

2.2. Bourdieu: OSCM as a Field of Power

Pierre Bourdieu’s concepts—field, capital, and habitus—are deeply relevant to OSCM.

The OSCM Field

The OSCM field includes:

• operations managers

• purchasing professionals

• logistics providers

• regulators

• consultants

• technology vendors

• industry associations

These actors compete for authority and legitimacy in defining “best practice.”

Forms of Capital in OSCM

Bourdieu’s multiform capital appears in OSCM as:

• Economic capital – budgets, assets, procurement power

• Cultural capital – expertise in analytics, supply chain certifications, technical skills

• Social capital – networks among buyers, suppliers, and carriers

• Symbolic capital – reputation for reliability, sustainability, or innovation

Managers with strong cultural and symbolic capital often shape supply chain strategies more than formal rules.

Habitus

Habitus represents managers’ dispositions shaped by training, experience, and organizational culture. It influences:

• attitudes toward risk

• preference for lean vs. resilient designs

• willingness to adopt sustainability

• level of trust in digital tools

Bourdieu shows that even when firms adopt the same procedures, outcomes differ because habitus shapes interpretation and implementation.

2.3. World-Systems Theory: OSCM in the Global Core–Periphery Economy

World-systems theory conceptualizes the global economy as a system structured by:

• core (high-value, technologically advanced economies)

• semi-periphery (industrializing but dependent economies)

• periphery (resource extraction and low-cost manufacturing economies)

This framework is especially relevant to OSCM because:

• production is globally dispersed

• supply chains link core consumers with peripheral producers

• environmental burdens often fall on the periphery

• logistics infrastructures reflect geopolitical inequalities

For example:

• Core economies specialize in design, advanced R&D, branding, and strategic supply chain management.

• Peripheral regions perform labor-intensive tasks, often under weaker labor protections.

• Semi-peripheral economies (such as Mexico, Turkey, Malaysia) integrate themselves as manufacturing hubs in global networks.

World-systems analysis helps explain tensions in supply chain governance, such as:

• dependency on raw materials from vulnerable regions

• unequal bargaining power between multinational corporations and suppliers

• offshoring of pollution-intensive operations

• political pressures for “nearshoring” or “friendshoring”

2.4. Institutional Isomorphism: Why OSCM Practices Converge

Institutional isomorphism explains organizational convergence through:

Coercive pressures

Regulations, industry standards, and buyer requirements force suppliers to adopt:

• traceability tools

• quality certifications

• sustainability audits

• digital reporting systems

Mimetic pressures

Under uncertainty, firms imitate industry leaders, adopting:

• digital twins

• predictive analytics

• blockchain traceability

• lean-agile hybrid models

Normative pressures

Professional education and associations promote certain skills and frameworks:

• supply chain certifications (CSCP, CPIM, CLTD)

• lean six sigma

• ESG reporting frameworks

• procurement best practices

Institutional isomorphism explains why OSCM vocabulary and methods look similar across continents, even when local economic conditions differ.

3. Methodology

This article uses a conceptual narrative literature review approach synthesizing:

• theoretical works by Bourdieu, Wallerstein, and DiMaggio & Powell

• classical OSCM books (operations strategy, logistics management, procurement)

• empirical studies published between 2010 and 2025 on:

  • digital transformation

  • predictive logistics

  • resilience

  • sustainability

  • circular economy

  • institutional pressures

  • global production networks

Sources were selected for relevance, methodological reliability, and conceptual richness.

Key analytical themes included:

1. Evolution of OSCM functions

2. Impact of digitalization

3. Integration of sustainability

4. Global power structures

5. Institutional convergence

Given the conceptual aim, no new quantitative data were collected.

4. Analysis

4.1. The Strategic Transformation of OSCM

The pandemic represented a watershed moment for OSCM. Before 2020, many companies emphasized:

• minimal inventory

• single sourcing

• long-distance shipping routes

• globalized production hubs for cost efficiency

After repeated global shocks, firms recognized that efficiency without resilience is dangerous.

Key strategic shifts include:

1. From globalization to regionalization and friendshoring

2. From lean-only to lean + agile + resilient hybrids

3. From opaque supplier networks to end-to-end visibility systems

4. From manual forecasting to AI-enabled predictive analytics

5. From linear supply chains to circular supply systems

The field has therefore become more complex, integrating risk management, ethics, cybersecurity, and climate considerations.

4.2. Digital Integration and Data-Based Operations

Digital technologies form the operational backbone of modern OSCM:

Internet of Things (IoT)

• enables real-time tracking of inventory, equipment, and environmental conditions

Artificial Intelligence (AI)

• improves forecasting accuracy

• supports demand planning

• automates procurement decisions

Blockchain

• enhances traceability

• prevents fraud

• supports food and pharmaceutical safety

Digital twins

• simulate warehouse or production scenarios

• support risk planning and “what-if” analysis

Cloud-based collaboration platforms

• improve information sharing with suppliers and logistics partners

Cybersecurity risks

Digitalization has also introduced vulnerabilities, making cybersecurity a new OSCM priority.

Bourdieu’s perspective

Digitalization creates new axes of power:

• organizations with strong digital cultural capital outperform peers

• symbolic capital increases when firms are seen as leaders in innovation

• digital infrastructures become a new form of economic capital

Institutional isomorphism

Firms adopt similar digital tools because:

• regulators demand digital traceability

• competitors have already adopted them

• consultants standardize practices

• customers require electronic compliance

Digitalization thus becomes both a technical and institutional process.

4.3. Sustainability, ESG, and Circular Supply Chains

Sustainability is no longer optional. It is central to:

• logistics design

• supplier selection

• product design

• energy use

• transportation modes

• waste reduction

Circular economy practices include:

• reuse of materials

• remanufacturing

• reverse logistics

• recycling of components

• closed-loop supply networks

Institutional and regulatory pressures

Governments increasingly require:

• carbon reporting

• renewable energy use

• waste reduction goals

• sustainable procurement standards

Bourdieu’s perspective

Sustainability is becoming a form of symbolic capital. Firms use sustainability certifications, green logistics labels, and ESG reporting to signal legitimacy to investors and customers.

World-systems perspective

Core economies often export sustainability demands to suppliers in semi-peripheral and peripheral countries—but without offering adequate financial or technological support. This can deepen global inequalities and shift environmental burdens downstream.

4.4. Global Production Networks and Core–Periphery Inequalities

World-systems theory offers essential insight into OSCM:

1. Production is geographically unequal

• High-value strategic decisions occur in core countries

• Assembly and extraction occur in lower-cost regions

• Environmental degradation is often concentrated in the periphery

2. Power asymmetries drive cost pressures

Multinational firms in the core exert bargaining power over suppliers, imposing:

• strict delivery schedules

• price controls

• sustainability audits

• technology adoption requirements

3. Logistics infrastructures reinforce geopolitical patterns

• shipping lanes

• port capacities

• trade corridors

• air freight hubs

These infrastructures reflect historical inequalities.

4. Geopolitical risks reshape OSCM

As countries seek independence in critical sectors (semiconductors, energy, food), OSCM decisions increasingly reflect geopolitics rather than pure market logic.

4.5. Institutional Isomorphism and Global Convergence of Supply Chain Practices

Institutional isomorphism explains why a company in Brazil, the UAE, Germany, and Singapore might all adopt:

• the same quality certifications

• the same risk-management frameworks

• similar sustainability reporting standards

• similar digital supply chain solutions

Coercive pressures

• industry regulations

• government transparency laws

• sustainability mandates

• customer requirements

Mimetic pressures

• copying Amazon, Toyota, Apple, or major logistics firms

• adopting fashionable tools such as digital twins or blockchain

Normative pressures

• shared education in operations management

• global professional certification programs

• consulting frameworks

These forces produce global convergence—but also periodic waves of OSCM “fads.”

4.6. Habitus and Micro-Level Practices in OSCM

Despite convergence, actual outcomes vary because habitus shapes:

• how managers understand risk

• willingness to invest in redundancy

• openness to supplier collaboration

• ethical orientation toward labor

• responsiveness to sustainability pressures

For example:

• A cost-driven habitus leads to single sourcing and aggressive procurement.

• A resilience-oriented habitus supports multi-sourcing and strategic inventories.

• A sustainability-oriented habitus prioritizes circularity and ethical sourcing.

Thus, organizational culture determines whether OSCM practices succeed or fail.

5. Findings

5.1. OSCM is now a strategic and societal function

It directly influences national security, food security, health systems, environmental sustainability, and global economic stability.

5.2. Digitalization is essential but uneven

Companies with strong digital capital enjoy better resilience, sustainability, and forecasting accuracy. Peripheral suppliers often lack such resources.

5.3. Sustainability is a dominant institutional pressure

ESG expectations drive circular economy practices, carbon reduction, and greater supply chain transparency. But implementation depth varies widely and can be symbolic.

5.4. Global production networks reflect and reproduce core–periphery inequalities

Value creation is concentrated in the core, while environmental and social burdens lie in the periphery. Inequality shapes resilience and sustainability outcomes.

5.5. Institutional isomorphism drives convergence of OSCM tools

Regulations, norms, and market pressures push firms toward similar practices even when local contexts differ.

5.6. Habitus shapes practical outcomes

Managerial dispositions influence whether resilience, sustainability, and digital transformation truly take root.

6. Conclusion

Operations and Supply Chain Management has begun a new chapter. The problems of the 2020s—pandemic disruptions, climate risks, geopolitical tensions, digital transformation, and moral duties—have turned OSCM into a strategic field that affects the stability of the global economy. This article shows that OSCM is more than just a technical field; it is also a place of power, institutional pressures, and a part of the global economy. Bourdieu's framework illustrates the impact of managerial capital and habitus on decision-making. World-systems theory shows how supply chains make global inequalities worse. Institutional isomorphism elucidates the convergence of OSCM practices across various industries and nations.

To build resilient, sustainable, and equitable supply chains, organizations must:

• invest in digital capabilities

• support ethical sourcing

• reduce environmental burdens

• develop inclusive, collaborative governance structures

• understand cultural and institutional pressures shaping OSCM behavior

Future research should investigate the impact of emerging technologies (AI, quantum computing, autonomous logistics) on the dynamics of OSCM power, as well as the effects of global sustainability regulations on production and distribution networks. In a world that is becoming more unstable, OSCM is now a key part of making sure that the economy is strong, that people are responsible, and that the environment is protected.

Hashtags

#OperationsManagement #SupplyChainResilience #DigitalSupplyChains #SustainableLogistics #GlobalProduction #ESGIntegration #CircularEconomy

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