Managing dependence on scarce natural resources: how institutional logic and autonomy shape supply chain strategies

Purpose: Supply chain (SC) strategies are heavily influenced by companies’ dependence on natural resources, particularly when they are in a condition of scarcity. Although natural resource scarcity (NRS) represents a significant strategic dimension in SC management, theoretical development remains scarce in the SC literature. This paper aims to offer insights into the interplay among SC strategies, strategic drivers and strategic levers from a Natural Resource Dependence Theory (NRDT) perspective. Design/methodology/approach: This paper is based on seven case studies conducted within the Rare Earth Magnets industry in Europe, which plays a crucial role in the context of NRS. The authors use a constructivist approach to gain a deep understanding of each case study as well as the broader context in which these SCs operate. Findings: This paper reveals six SC configurations linked to two strategic drivers, namely, institutional logic and autonomy in the SC. For each configuration, strategies (buffering vs bridging) and strategic levers are analysed and discussed. Originality/value: This paper reveals the coexistence of diversified strategies to manage dependence on scarce natural resources. It argues that NRS favours the interplay between bridging and buffering strategies, as companies are more prone to collaborate along the SC in conditions of high ecological uncertainty. The paper contributes to NRDT at the SC level by showing how institutional logic and autonomy drive SC strategic responses to NRS. Moreover, it establishes new findings regarding how the strategic levers could be used in managing resource dependencies in SC.