Supply chain management and business cycles

Purpose The purpose of this research note is to investigate the implications of supply chain management of e‐business for the macroeconomic phenomenon of business cycles. Design/methodology/approach The paper provides a list of propositions, which form the broad basis of an empirical research agenda, to explore and investigate the mechanisms through which supply chain innovations can influence business cycle. Findings Economic research literature has pointed out that there are linkages between inventory investment and business cycle fluctuation. Given that the e‐business supply chain management drastically alters inventory investment across a range of industries, it is likely to affect the behaviour of economic fluctuation. Originality/value This research has the potential to contribute to a better‐informed formulation of economic policies at national and global level.