Analysis of approaches to the formation of economic mechanisms of supply chain management

Abstract

Purpose The purpose of this paper is to substantiate the influence of approaches to the economic mechanisms formation for managing supply chains on export and import volumes as well as local cargo transportation. Design/methodology/approach The study outlines that the information technology use, in particular, highly specialized supply chain management (SCM) software, is necessary for the effective functioning of global supply chains (GSCs). For the purposes of the one-factor regression models of the relationship between the signs for the analyzed factors, volume of external cargo transportation, volume of internal cargo transportation and amount of investment in SCM software were built, and the correlation coefficients were also determined. The research was based on data of the Russian Federation, China and Germany. Findings According to the results, for local cargo transportation for all three counties (Russian Federation: R² = 0.3679, China: R² = 0.441, Germany: 0.441), the correlation coefficients indicated no connection between the factors under study, while for external ones, they denoted a strong direct relationship: Russian Federation: R² = 0.906, China: R² = 0.8692, Germany: 0.926. It is statistically confirmed that external transportations are carried out by enterprises involved in GSCs, while the local ones are mainly performed by the domestic market-oriented companies. Originality/value The study presents a model for the formation of economic mechanisms of SCM from the perspective of a systemic approach. It allows for structural analysis of the SCM strategy’s impact on the functioning of participants within three management levels (corporate, business and functional). The study contributes to the practical domain of SCM: the results of the study can be applied by top managers of companies in developing SCM strategies, as well as by officials in developing and implementing governmental supply chain-related policies. In terms of scientific contribution, the research can also be of use: its methods and results can be applied by scientists in researching approaches to the economic mechanisms formation for managing supply chains on export and import volumes, as well as local cargo transportation in various countries and regions.