A Comprehensive Theoretical Model of the Complex Strategic Demand Management Process

Abstract

Abstract This article explains the complex process of strategic demand management by developing a comprehensive theoretical framework that integrates research focused on diverse aspects of demand management such as product characteristics, environmental uncertainties, operational strategies, integration between supply and demand processes, and performance outcomes. Over 100 academic works were synthesized following a structured literature review process. A holistic definition of demand management is presented. Demand management concepts and relationships were investigated and organized in a comprehensive theoretical model. Competitive orientation and strategic consensus emerged as a fundamental construct to understand the demand management process. It was found that consensus among the environment, competitive orientation, and operational strategies supporting demand management would lead to superior performance. Six operational strategies—information sharing, integration, inventory, sourcing, manufacturing, and distribution—were analyzed with respect to the competitive orientations. This analysis can assist managers in choosing the right portfolio and objectives of the operational strategies to support their demand management goals. The comprehensive demand management framework, six operational strategies and objectives of each operational strategy, and links to performance provides a rich background for conducting empirical research in future.