Supply Chain Challenges and Shared Value Destruction in the Community-Based Supply Chain

Abstract This study explores challenges among inter-organizational managers in community-based enterprises. According to transaction cost theory (TCT), associated transactions and mechanisms control and limit market failures within supply chain relationships. Using semi-structured interviews and an embedded case study, community-based supply chain managers participated in this study. Four salient themes capture the transactional issues that influence transaction costs in the community-based inter-organizational supply chain. This paper marks the first attempt to conceptualize the role of transactional issues in the community-based supply chain design. The study uses TCT to evaluate the applicability of supply chain challenges and the need for shared value creation in community-based contexts. The research acknowledges that limitations exist due to the scope and extent of research.