Margin Architecture in High-Wage Supply Chains: A Structural Reconfiguration Framework for Cost-Dominant U.S. Logistics Networks

PurposeThis paper develops Margin Architecture (MA) as a structural framework for explaining margin stability in high-wage logistics environments. It examines how asset posture, governance tightness, coordination density, and labor intensity may influence Structural Cost Elasticity (SCE) and, consequently, margin stability. Design/methodology/approachThe study adopts a conceptual theory-building approach by integrating transaction cost economics, resource orchestration theory, asset-configuration research, and asymmetric cost behavior. A conceptual model and six theoretical propositions are developed. An illustrative U.S. e-commerce logistics application and hypothetical numerical comparison are used to demonstrate the framework’s internal logic; they are explanatory rather than empirical validation. FindingsThe framework proposes that margin stability depends partly on how appropriately operating costs respond to changing demand conditions. Margin Architecture links four structural dimensions—asset posture, governance tightness, coordination density, and labor intensity—to SCE, which is proposed as the mechanism connecting structural configuration with margin stability. SCE is interpreted directionally by distinguishing cost responsiveness during demand expansion from cost adjustment during contraction. OriginalityThe paper introduces Margin Architecture as an integrated conceptual framework that reframes margin stability as an outcome influenced by supply chain structural design rather than solely by operational efficiency or cost reduction. It integrates structural configuration with asymmetric cost behavior and provides a foundation for subsequent empirical testing. Keywords: Margin Architecture; Structural Cost Elasticity; High-Wage Logistics; Governance; Coordination Density; Asset-Light Strategy; Supply Chain Design; Margin Stability