Contingency theory helps not only with tension in the organization, but also with supplier and customer coordination. Understanding all organizational issues from a contextual perspective and applying it to the research can help to determine the impact of supplier and customer coordination on performance (Jayaram, Xu & Nicolae, 2011). After a long research Jayaram, Xu, and Nicolae (2011) found that there is “no one best method to integrate suppliers into NPD (new product development), and the level of technology uncertainty present determines the relative moment when the supplier should become involved (p. 65).
There are many more situations in the business world today where contingency theory could be applied. This theory depends on the characteristics, situation, and the important contingencies in which they are applied, so it does not just stop with business (Bateman & Snell, 2011). The ideas and characteristics of this approach can be used in science, psychology, sociology, and some other fields and can still be applied with years to come. I believe that it is beneficial that with this theory a manager has to consider every aspect that is involved in the process of decision making and execution.
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