Demand chain management theory: constraints and development from global aerospace supply webs

Abstract

Abstract This paper develops an empirical and theoretical approach to where strategic capabilities should lie within global aerospace supply chains. Theory from transaction cost economics (TCE) and the resource‐based view (RBV) of the firm are applied to the aerospace sector and used to underpin a theory of demand chain management (DCM). A two‐stage research process was used to generate and validate data from aerospace supply chain case studies. Demand chain driver and resource‐based response categories were identified from these data and are presented. Concluding comments concern current limits of a demand chain theory and implications for practitioners.