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Chapter 6.3
1. INTRODUCTION
Supply chain management (SCM) has been used
as an equipment to describe the whole product
chain from the raw materials to the end users
(Iskanius 2006; Scarlett, 2007). Often this supply
chain consists of several different producers and
intermediaries. It is usual to describe and study
geographical economic areas, specialised one or
several neighbouring branches, using e.g. cluster
of diamond model (Porter, 1990) and resource
dependence theory (Männistö, 2002). Instead of
these models or theories, we will consider here
Rauno Rusko
University of Lapland, Finland
Supply Chain Management in
the Context of Economic Area:
Case Study for the Development of
ICT Branch in the City of Oulu
ABSTRACT
This study introduces geographical viewpoints for supply chain management (SCM) focusing on the
branch of information communication technology (ICT) in the case of city and region of Oulu. The City
of Oulu is a remarkable planning and administration centre of ICT branch in Finland. In this study we
- instead of using commonly used cluster or resource dependence theories - utilize SCM framework to
describe the development and path-dependence of knowledge-intensive geographical area, which is spe-
cialized in high tech or actually ICT business. In the context of geographical analysis, or of geographical
economics, SCM is less-used viewpoint. This case study shows that SCM, and especially strategic level
SC endowment viewpoint (introduced initially in Rusko, Kylänen & Saari, 2009), is valuable and useful
tool in analysing the geo-economic development and path-dependence of a high tech centre. As a result,
we notice that the development of Oulu is based on the development of SC endowment connected with
amounts of talents and also multi-dimensional coopetition. One essential result is the observed erosion
in the SC endowment of high tech Oulu, which sets remarkable challenges for city planning.
DOI: 10.4018/978-1-4666-0882-5.ch6.3