In NAT, interactive complexity is evaluated according to the number of elements
within a system and the inter-relatedness of the elements. Similarly, there are three well established related dimensions of complexity in the supply chain literature to measure interactive complexity: product complexity, process complexity and interconnection complexity (e.g., Kotha and Orne 1989, Khurana 1999). Product complexity is defined by the number of parts and components needed to produce a product (Clark and Fujimoto 1991). It can be reduced when there are fewer components, fewer processes, fewer states as well as fewer variations of states. Fewer numbers of components and options of these components reduce the number of potential interactions that may exist between parts (Khurana 1999). In order to manage process complexity, it is often required to decompose the job into a small number of non-dependent tasks or activities. The interconnection level refers to the interaction level of various parts and process operations (Kotha and Orne 1989). As the number of process steps increases, the number of potential interactions also increases. As noted with tight coupling, there is also agreement in the supply chain literature regarding a positive relationship between interactive complexity and the likelihood of experiencing a supply chain disruption particularly in an international setting (Wilding 1998, Prater et al. 2001).
In NAT, interactive complexity is evaluated according to the number of elements
within a system and the inter-relatedness of the elements. Similarly, there are three well established related dimensions of complexity in the supply chain literature to measure interactive complexity: product complexity, process complexity and interconnection complexity (e.g., Kotha and Orne 1989, Khurana 1999). Product complexity is defined by the number of parts and components needed to produce a product (Clark and Fujimoto 1991). It can be reduced when there are fewer components, fewer processes, fewer states as well as fewer variations of states. Fewer numbers of components and options of these components reduce the number of potential interactions that may exist between parts (Khurana 1999). In order to manage process complexity, it is often required to decompose the job into a small number of non-dependent tasks or activities. The interconnection level refers to the interaction level of various parts and process operations (Kotha and Orne 1989). As the number of process steps increases, the number of potential interactions also increases. As noted with tight coupling, there is also agreement in the supply chain literature regarding a positive relationship between interactive complexity and the likelihood of experiencing a supply chain disruption particularly in an international setting (Wilding 1998, Prater et al. 2001).
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