Background Note | HBS Case Collection | April 2000

Aligning Incentives for Supply Chain Efficiency

by V.G. Narayanan and Ananth Raman

Abstract

Introduces students to the basics of principal-agency theory as it applies to supply chains. Operational problems in supply chains can often be traced to incentive issues. Students and managers lack frameworks to analyze incentive problems in supply chains. This note offers such a framework.

Keywords: Supply Chain Management; Motivation and Incentives; Framework; Management Analysis, Tools, and Techniques; Agency Theory;

Citation:

Narayanan, V.G., and Ananth Raman. "Aligning Incentives for Supply Chain Efficiency." Harvard Business School Background Note 600-110, April 2000.