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Exploring efficiency and effectiveness in the (探索的效率和有效性)
Exploring efficiency and effectiveness in the supply chain
A conceptual analysis
Benedikte Borgström
Jönköping International Business School
P.O. Box 1026, SE- 551 11 Jönköping
Sweden
bobe@jibs.hj .se
Abstract
Firms struggle for efficiency and effectiveness. Strategies involving collaboration between
actors and integration of activity chains are reliant of factors that firms do not have direct
ownership and control over. This has implications for strategizing, setting the goals and
measuring performance. Efficiency and effectiveness are often used to describe performance.
From a resource dependence perspective efficiency is defined as an internal standard of
performance and effectiveness as an external standard of fit to various demands (Pfeffer and
Salancik 1978). In supply chains efficiency improvements are e.g. Just-in Time production
while effectiveness is achieved through customer orientation and innovation.
The conceptualization of efficiency and effectiveness has its roots in system theory. Definition
of the system is difficult for a quasi-organization as a supply chain that has blurred structural
boundaries. Defining the system as processes of activities implies that the meaning of and the
relation between efficiency and effectiveness might change as well.
This is a conceptual paper with a purpose to describe and analyze efficiency and
effectiveness as constructs based upon activity systems. The analysis of efficiency and
effectiveness involves the meaning, the use and the relations between efficiency and
effectiveness. We
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