How Supply Chain Governance Influences Information Sharing Behaviors: A Multiple Case Study Approach

1. How Supply Chain Governance Influences Information Sharing Behaviors: A Multiple Case Study Approach ECIS 2013, Utrecht Tobias Engel, Olga Birth, Suparna Goswami, Helmut Krcmar Technische Universität München

2. Research Gap Supply Chain Governance Supply Chain Governance Information Sharing Supply Chain Performance Culture Leadership … Less understanding regarding how these factors are inter-related and how they affect information sharing The positive contribution of information sharing towards supply chain performance has been proven (e.g., Straub et al. 2004, Rai/Klein 2009) For this research: Qualitative multiple-case study to explain differences in information sharing behavior focusing on supply chain governance

3. Agenda • Introduction • Supply Chain Governance • Research Method • Case Study Overview & Results • Discussion • Implications

4. Introduction • Benefits of information sharing are well recognized (e.g., Rai/Klein, 2009) • However, only 10% of firms share strategic information (e.g., Prokesch, 2011) • Strategic information allows to influence terms and conditions (e.g., Nair et al., 2011) • Concerns regarding opportunistic behavior prevents partners from sharing information • Information sharing is complicated by various factors • Information management capabilities of firms (e.g., Mithas et al., 2011) • Socio-political behavior (e.g., Kumar/van Dissel, 1996) • Supply chain governance can play an important role in information sharing

5. Supply chain governance • A complex concept referring to: ability to effectively govern the supply chain • Characterized by different factors • Technical factors such as data management capabilities • Relational factors such as trust and bargaining power • We conceptualize supply chain governance as a three-dimensional concept: • Technical:basic information technology setup and linkages • Advanced technical: routines and schedule for information exchange between partners • Relational: Socio-political perspective

6. 2 Supply Chain Governance

7. Research Method • Explorative multiple case study approach: fashion industry • Semi-structured interview questionnaire • Pre-Check with 5 consultants and 2 independent researchers • Right focus, ordered structure, extensive coverage of topic • 4 cases • Five interviews with supply chain representatives from the Top and Senior Management (One-on-one interviews from 16th Jan. – 18th June 2012) • 3 follow-up interviews & Review of internal documents • Extensive and thorough analysis of the case data • Ensures validity (Rival explanation, code words, protocol, etc.) • Allows us to derive propositions

8. 4 Case Study Overview • Four firms from the fashion industry • High quality products within the medium and premium price segment • Mainly clothes are offered • Headquarters in Europe • Production facilities in Asia; except Beta: finalizes variants for special products in Europe • All firms have similar distribution networks

9. 4 Results: Technical SCG The technical capabilities of firms to use and implement ICT vary • “[…] no one likes to work with the system. It has been introduced, and now there is no other chance than to accept it.” (Delta) • “[..] we have the Business Intelligence module from SAP to create reports […] some important reports are already pre-defined […].” (Beta)

10. 4 Results: Advanced Technical SCG We found a different knowledge base on information sharing possibilities • “[…] order and forecast information is shared.” (Alpha) • “[…] we have a daily information sharing process.” (Delta) • “[…] we will share any information which is needed to supply the goods on time, but we do not see any additional value to share Point-of Sales-Data.” (Alpha)

11. 4 Results: Relational SCG Trust positively influences the duration of relationships, while the stronger partner can use its bargaining power position to dictate information sharing behaviors • “[…] the suppliers say if you want to have the drapery in your color […] then you have to buy a minimum order quantity.” (Delta) • “It is always dangerous […] to allow external firms to look into it (information). […] This is not good.” (Delta) • “We have defined order minimums and mechanism to work efficiently.” (Beta)

12. 5 Findings • Technical capabilities are not sufficient to analyze • Relational aspects are of higher value for information sharing • Technical capabilities support the efficiency of information sharing, while • Relational capabilities enable mutual information sharing in supply chains • Firms differ in their supply chain governance competencies • Supply chain knowledge is important for information sharing • Collaborative approach of the stronger partner defines information sharing processes • Trust is more important than bargaining power for information sharing

13. 6 Implications • Theory: development of a supply chain governance concept to analyze information sharing competencies of firms • Theory: Inter-dependencies between technical and relational capabilities have been identified • Practitioners: manage, govern and develop information sharing strategies to realize supply chain performance • Limitations & Further Research • All cases are from the retail sector; findings have to be treated with caution • Only supply chain governance has been analyzed: analyze further factors such as supply chain knowledge, trust and bargaining power • Next Steps: Explanatory Case Studies

14. Thank you – Discussion Information MmgtCapab. Technical capabilities Supply chain knowledge P 3 Trust Information Sharing Supply Chain Performance Other factors ? P 1 P 2 Bargaining power

15. Backup

16. Thank you – Discussion Information MmgtCapab. P 1: In supply chain relationships, irrespective of bargaining power differences, there is no information sharing without aligned supply chain governance mechanisms. P 2: In a strong–weak relationship, the stronger partner dictates the information sharing strategies. P 3: In a strong-weak relationship, aligned supply chain governance mechanisms results in mutual information sharing Technical capabilities Supply chain knowledge P 3 Trust Information Sharing Supply Chain Performance Other factors ? P 1 P 2 Bargaining power

17. 7 Limitations • All cases are from the retail sector: allows to control for cross-industry variations, while the findings have to be treated with caution for other industries • Only supply chain governance has been analyzed. Further research could consider (1) cultural factors, (2) inter-firm learning processes and (3) supply chain specific investments • Bargaining power is used differently; therefore, future research should study under what conditions bargaining power has an impact on information sharing. It could be worthwhile to use a game theoretical perspective (Parkhe, 1993; Straub et al., 2004; Prokesch, 2010)