Production and Operations Management 2026
EXPRESS: Operations and Supply Chain Management in China: Part II -Industrial Transformation and Policy Governance
Abstract
This Part II paper analyzes the industrial transformation and policy governance of Operations and Supply Chain Management (OSCM) in China. Chinese supply chains are changing fast. The system is shifting from labor-based cost advantages to technology-driven value. Key markers include high-density automation, industrial artificial intelligence, and green operations. Concurrently, national policies serve as critical institutional drivers. This study highlights a distinctive state-led governance innovation known as the "Chain Chief System" (SCLS). The SCLS mechanism combines government administrative coordination with lead enterprise leadership. We utilize an innovative Institutional-Dynamic-Organizational (IDO) model developed in Part I paper to evaluate this triadic ecosystem. Finally, we provide a balanced assessment of operational performance trade-offs under embedded state governance. Our findings reveal how institutional buffering reduces systemic risk costs while introducing compliance burdens and affecting market agility. This study offers key insights for global managers navigating supply chain resilience and uncertain industrial environments.
- DOI
- 10.1177/10591478261461409
- Sources
- openalex