Enabling or burdening: the double-edged sword effect of supply chain decentralization on supply chain efficiency

Purpose Drawing on mechanism design theory (MDT) and the structure-conduct-performance (SCP) paradigm, this study developed a cross-level model to examine the double-edged sword effect of supply chain decentralization (SCDece) on supply chain efficiency (SCEffi) and reveal the underlying mechanism. Design/methodology/approach This study collected 78 sets of supply-chain-level data and 372 sets of enterprise-level data through a newly designed multi-time point and multi-source survey. Multi-level structural equation modelling was adopted to verify the hypotheses. Findings The results demonstrated that SCDece had dual effects on SCEffi. On the one hand, it encouraged supply chain enterprises to adopt consistent group decision-making, thereby enhancing overall efficiency. On the other hand, it prompted solipsistic individual decision-making, which diminished SCEffi. Supply chain maturity (SCMatu) moderated these opposing mediation paths: for high SCMatu, the positive mediation effect of group decision-making of enterprises in supply chain was strengthened, while the negative effect of individual decision-making of enterprises in the supply chain (IDESC) was attenuated. Practical implications To optimize SCEffi, managers should strategically align SCDece with SCMatu. Additionally, enterprise supervisors should adopt the principle of “extensive consultation, joint contribution and shared benefits” to strengthen collaborative decision-making and mitigate individual decision-making. Originality/value From a cross-level perspective, this study examined the double-edged sword effect of SCDece on SCEffi and uncovered its underlying mechanisms through differential decision-making behaviours among supply chain enterprises. These findings extend the literature on decentralization and integration development of the MDT and SCP paradigms. It also provides new insights for a supply chain to reduce the negative effects of IDESC.