Understanding inter‐organizational decision coordination

Purpose – This article develops a theoretical framework to investigate the interaction and coordination of decision‐making processes in a supply chain with multiple and inter‐dependent suppliers and customers.Design/methodology/approach – The paper presents three longitudinal case studies on the decision coordination processes between a European toy supplier and three retailers.Findings – The case studies found different mental models, decision‐making behaviours, coordination behaviours and ordering behaviours even though the toy supplier and the three retailers observed quite the same material flow behaviours. The study found explanations for these diverse behaviours by analysing the mental models and decision‐making behaviours of each involved party.Originality/value – The findings explain the conditions which lead to undesirable mental models and decision‐making behaviours which affect the coordination of decisions among supply chain members.