Innovation in supply chains - solving the agency dilemma in supply networks by using industry 4.0 technologies

In the past, the agency theory was used to analyse problems within supply networks. This theory suggested different solutions to bring about a reduction in information asymmetries. However, doing so in the future will prove to be difficult owing to the increasing complexity of supply networks. Moreover, along with the fourth industrial revolution - industry 4.0 - new technologies such as cyber physical systems are fast gaining popularity. Hence, based on the analysis of relevant literature, we further develop the supply chain committee model, developed by Kaluza et al. (2003) to demonstrate how upcoming technologies can be integrated. This may help manage agency problems, despite the growth in complexity in supply networks.