Collaborative Supply Chain Management: The Impact of Information Technologies

1. Collaborative Supply Chain Management: The Impact of Information Technologies Chien-Liang Kuo October 24, 2003 • Note 1: Because it is still in progress, conclusions of this presentation will be • different with that being reported in my Ph.D. dissertation • Note 2: Part of the materials are not confirmed by interviewees; please do not • distribute the information in this presentation without approval

2. Introduction • Background & Motivations • There exist implicit relations between information • system (IS) research and supply chains (SCs) Boundaries Relations Markets IT Source: Konsynski (1993)

3. Introduction (Cont.) A combination of a set of separated organizations IT SC Interdependence between upstream and downstream A simplified market structure

4. Introduction (Cont.) • Research purpose • Investigate how IT is planned and used to collaborate • in a SC now and in the foreseeable future • Research questions • How do organizations change their boundaries, • relations and network structures and how is • IT served and managed in this manner? • How are new supply chains (SCs) managed and • how does IT affect SCM? • Are there any generalizable trends and implications?

5. Literature Review • Composed of 3 parts • IT-enabled market structures • Structure, strategy, IT and performance of a SC • How is the perspective of strategic alignment • applied?

6. Literature Review (Cont.) • IT-enabled Market Structures • Alternative predictions • E-market hypothesis (EMH): Malone et al. (1987) • E-hierarchy hypothesis: Malone et al, (1987) • Move-to-the-middle hypothesis: Clemons et al. (1993)

7. Literature Review (Cont.) • IT-enabled Market Structures • Arguments • Effects of IT / electronic interconnections: - brokerage, communication, and integration • Dimensions for distinguish the market structures - asset specificity vs. product complexity - ownership vs. coordination costs • The separation of transaction risks and costs: - the value of outsourcing • Optimal number of partners / players in a market • Effects of incomplete contracts / partnerships

8. Literature Review (Cont.) • Structure, strategy, IT and performance of a SC • SC and supply networks • Adopt a wide SC definition by Harland et al. (2001) • The complexity of business network • Bargaining power effects • - buyer dominance, interdependence, • independence, seller dominance

9. Literature Review (Cont.) • Structure, strategy, IT and performance of a SC • IOSs in the SC • First introduced by Barrett & Konsynski (1982) • IOS, in fact, is not a uni-dimensional construct • Who benefits more from the IOS? • IOS sharing versus information sharing • IOS versus integration

10. Literature Review (Cont.) • Structure, strategy, IT and performance of a SC • Collaboration, IOSs and SCM • Effects of IOSs adoption on business relationships Vary for both short-term and long-term cases • Mukhopadhyay et al. (1995) proposes a causal model depicting the relation between IT, business / SC operations, and financial performance • Similar claims are also made by Clark & Lee (2000) • B2B technologies help to widen the applicability of IOSs with respect to SC coordination. • Cautions from ‘the magic bullet perspective’

11. Literature Review (Cont.) • Structure, strategy, IT and performance of a SC • Performance Measurement of a SC • The importance of having appropriate • performance metrics • The performance metrics should fit with • with the features of a SC • Ways to measure SC performance

12. Literature Review (Cont.) • How is the strategic alignment model applied? • Proposed by Henderson & Venkatraman (1993) • The basic theme / perspective of this study • Topics being covered include • Analyzing the impacts of IT on organizations and business networks • Examining the explanation power of the original strategic alignment models • Raise the concerns that go beyond organization boundaries • Other relevant approaches for alignment

13. Literature Review (Cont.) Source: Henderson & Venkatraman (1993)

14. Research Framework Market structure SC network SCM & Firm strategy IT & IOSs SC Performance

15. Research Model Company A Company B C D E F… Business domain linking within a company IS domain Linking across companies Source: Ribbers & Smits (2001); Kuo & Smits (2003)

16. Research Method • Research methods being taken: Case study • Why uses ‘case study’? • This topic is not yet thoroughly investigated by a • single study in the past • It requires rich and longitudinal data for capturing • the pattern of how SC members interact and • evolve through the use of IT • Typical quantitative research methods are hard to • gather how paired players perceive

17. Research Method (Cont.) • How to select appropriate cases? • Different from the paradigm of statistics sampling • A case should as least include two paired players, • namely upstream and downstream • Data sources • Interview with managers or CEO of firms • Secondary data over the web • Internal documents • Financial reports for firms

18. Functional products Innovative products Electronic industry [Active IS initiators] ADC products PC related products Textile industry [Passive IS followers] Paperboard tubes Sweaters Research Method (Cont.) • Strategies for case selection

19. Q & A Comments or suggestions are very welcomed Remark: Complete slides or reference list is available on request