AccessMyLibrary provides FREE access to over 30 million articles from top publications available through your library.

How do suppliers benefit from information technology use in supply chain relationships? (1).(Research Article)

MIS Quarterly

| March 01, 2004 | Subramani, Mani | COPYRIGHT 2004 University of Minnesota, MIS Research Center. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Abstract

Supply chain management systems (SCMS) championed by network leaders in their supplier networks are now ubiquitous. While prior studies have examined the benefits to network leaders from these systems, little attention has been paid to the benefits to supplier firms. This study draws from organizational theories of learning and action and transaction cost theory to propose a model relating suppliers' use of SCMS to benefits. It proposes that two patterns of SCMS use by suppliers--exploitation and exploration--create contexts for suppliers to make relationship-specific investments in business processes and domain knowledge. These, in turn, enable suppliers to both create value and retain a portion of the value created by the use of these systems in interfirm relationships.

Data from 131 suppliers using an SCMS implemented by one large retailer support hypotheses that relationship-specific intangible investments play a mediating role linking SCMS use to benefits. Evidence that patterns of information technology use are significant determinants of relationship-specific investments in business processes and domain expertise provides a finer-grained explanation of the logic of IT-enabled electronic integration. The results support the vendors-to-partners thesis that IT deployments in supply chains lead to closer buyer-supplier relationships (Bakos and Brynjyolfsson 1993). The results also suggest the complementarity of the transaction-cost and resource-based views, elaborating the logic by which specialized assets can also be strategic assets.

Keywords: Buyer-supplier relationships, interorganizational systems (IOS), EDI, supply chain management systems (SCMS), transaction cost economics, intangible asset specificity, IT use, exploration, exploitation

**********

Introduction

Early forms of interorganizational systems (IOS) primarily supported the automation of manual processes such as ordering and settling accounts. A range of new features for information sharing, communication, and collaboration has subsequently enhanced these systems (Icasati-Johanson and Fleck 2003). Estimates suggest that over 30,000 IOS are currently in use, supporting a large proportion of business-to-business transactions (Harris 2001).

Related articles from newspapers, magazines, journals, and more
SCMS GROUP OF EDUCATIONAL INSTITUTIONS (is the fastest growing group of...
Magazine article from: India Business Insight May 25, 2008 700+ words
The SCMS Group of Educational Institutions of Kochi is the fastest growing...educational institutions in Kerala. The institutions operated by the SCMS Group of Educational Institutions are SCMS-COCHIN, SCMS School of Engineering and Technology (SSET...
SCMS College, Microsoft pact.
News wire article from: Asia Africa Intelligence Wire April 26, 2004 700+ words
(From Business Line) KOCHI: The SCMS School of Engineering and Technology...cyber academy competency centre at the SCMS campus aimed at offering education in software...technology. According to the agreement, SCMS Engineering College will be authorised...
Vision SCMS Inc. Reports Record Second-Quarter Revenues and Earnings.
Press release article from: Business Wire August 20, 2001 700+ words
...BUSINESS WIRE)--Aug. 20, 2001 Vision SCMS Inc. -- Vision's 100%(plus) Revenue...John Pedder, CEO and President, Vision SCMS Inc. ("Vision" or "the Company...and client relationships. About Vision SCMS Inc. Vision SCMS Inc. and its group of...
SCMS-Wipro in tie-up.
News wire article from: Business Line March 10, 2007 700+ words
...basis. Dr G. P.C. Nayar, Chairman of SCMS, will inaugurate the general management...potential and high performing techies. SCMS would be able to provide middle level executives...business from a management perspective. SCMS will be the first B-School in the state...
Better Days Ahead for the Worldwide Supply Chain Management Services Market,...
Press release article from: PR Newswire June 11, 2002 700+ words
...supply chain management services market (SCMS) will grow at a compound annual growth...Better days are on the horizon for the SCMS market," said Romala Ravi, program manager...segment will be key growth areas within the SCMS market. IDC also believes that there will...
OraSure Technologies (Bethlehem, Pennsylvania) reported an agreement for the...
Newspaper article from: Diagnostics & Imaging Week August 2, 2007 700+ words
...the Supply Chain Management System ("SCMS"). Created with funds from the President...Emergency Plan for AIDS Relief (PEPFAR), SCMS procures essential medicines, diagnostic...Under the terms of the new agreement, SCMS may purchase the OraQuick test for an initial...
LEVEL5's John Hyche Joins SCMS Faculty.
Press release article from: PR Newswire April 3, 2007 700+ words
...Southwest CUNA Management School Southwest CUNA Management School (SCMS) is a three-year program recognized in the credit union movement...class size is limited to 50 students. Established in 1966, SCMS carries a mission to educate, develop, and enhance the leadership...
SCMS organises meet.
News wire article from: Business Line February 24, 2007 700+ words
...Business Line) from BUSINESS LINE, February 24, 2007 Kochi, Feb. 23 - The School of Communications and Management Studies (SCMS) is organising its two-day interactive seminar, Isthmus '07, on February 23 - 24 at its Kochi campus. More than a dozen...
SCIENTIFIC MEASUREMENT SYSTEMS, INC. (SCMS) ANNOUNCES EXCLUSIVE AGREEMENT...
Press release article from: PR Newswire September 26, 1995 700+ words
...better than 99 percent throughout the period. SMS is a publicly owned company traded on the NASD Bulletin Board under the symbol SCMS. The company is a leader in the development and commercialization of industrial digital radiography and computerized tomography...
SCMs TO GAIN WITH CUT IN AUTO-VENDORS (demand for SCM products is expected to...
News wire article from: Asia Africa Intelligence Wire August 10, 2005 700+ words
(From India Business Insight) The automobile sector is continuously looking to cut costs and bring down the number of component suppliers. This trend could be of immense benefit to supply chain management (SCM) software applications. The demand is expected to come from component manufacturers
For more facts and information, see all results

Source: HighBeam Research, How do suppliers benefit from information technology use in supply...

©2009 Gale, a part of Cengage Learning. All rights reserved.
About us | FAQs | Contact us | Privacy policy | Terms and conditions
Other Gale sites: Encyclopedia.com | HighBeam Research | Acquire Content | Books & Authors | Goliath | MovieRetriever | Smart QandA