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How Do Suppliers Benefit From Information Technology Use In Supply Chain Relationships?
How Do Suppliers Benefit From Information Technology Use In Supply Chain Relationships?資管研一 張永昌資管研一 張永昌
AgentAgent
Abstract IntroductionTheoretical BackgroundMethodsResultsDiscussion and Conclusions
Abstract IntroductionTheoretical BackgroundMethodsResultsDiscussion and Conclusions
AbstractAbstract
Two patterns of SCMS use by suppliers : Exploitation( 開發 ) Exploration( 調查 )
Data : 131 suppliers using an SCMS implemented
The results support the vendors-to-partners thesis that IT deployments in supply chains leads to closer buyer-supplier relationships (Bakos and Brynjyolfsson 1993)
Two patterns of SCMS use by suppliers : Exploitation( 開發 ) Exploration( 調查 )
Data : 131 suppliers using an SCMS implemented
The results support the vendors-to-partners thesis that IT deployments in supply chains leads to closer buyer-supplier relationships (Bakos and Brynjyolfsson 1993)
Introduction(1)Introduction(1)
Early forms of interorganizational systems (IOS) primarily supported the automation of manual processes such as ordering and settling accounts (Riggins and Mukhopadhyay 1994)
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).
Early forms of interorganizational systems (IOS) primarily supported the automation of manual processes such as ordering and settling accounts (Riggins and Mukhopadhyay 1994)
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).
Introduction(2)Introduction(2)
Network leaders : Chrysler 、 Dell 、 Ford 、 Wal-Mart
Benefits from these information technologies are unevenly distributed and skewed in favor of the network leader (Riggins and Mukhopadhyay 1994).
network leaders seem to benefit at the expense of supplier firms (Carter 1990; Clemons and Row 1993), often by shifting activities and costs to them.
This paper draw on organizational theories (組織理論) and transaction cost economics (交易成本理論) to examine supplier benefits from SCMS use.
Network leaders : Chrysler 、 Dell 、 Ford 、 Wal-Mart
Benefits from these information technologies are unevenly distributed and skewed in favor of the network leader (Riggins and Mukhopadhyay 1994).
network leaders seem to benefit at the expense of supplier firms (Carter 1990; Clemons and Row 1993), often by shifting activities and costs to them.
This paper draw on organizational theories (組織理論) and transaction cost economics (交易成本理論) to examine supplier benefits from SCMS use.
Introduction(3)Introduction(3)
This work contributes to the literature in three ways : it focuses on the supplier perspective in IT-med
iated supplier-retailer interactions and highlights the benefits to suppliers from IT use.
it theorizes two patterns of use of supply chain technologies–for exploitation and for exploration–and highlights the implications of these appropriation choices for relationship-specific supplier investments and supplier benefits.
it theorizes the role of relationship-specific intangible investments in enabling suppliers to both generate value and obtain benefits from SCMS use.
This work contributes to the literature in three ways : it focuses on the supplier perspective in IT-med
iated supplier-retailer interactions and highlights the benefits to suppliers from IT use.
it theorizes two patterns of use of supply chain technologies–for exploitation and for exploration–and highlights the implications of these appropriation choices for relationship-specific supplier investments and supplier benefits.
it theorizes the role of relationship-specific intangible investments in enabling suppliers to both generate value and obtain benefits from SCMS use.
H1
H2
H3a
H3b
H4
H4
H5
H5
H6
H7
Theoretical BackgroundPatterns of SCMS Use
Theoretical BackgroundPatterns of SCMS Use
Prior examinations of IOS reveal multiple goals motivating their use: providing management support, reducing operational costs, improving customer service, and gaining competitive advantages (Chatfield and Yetton 2000; Crook and Kumar 1998; El Sawy, Malhotra, Gosain and Young 1999; Premkumar, Ramamurthy, and Crum 1997).
The paper draw from a theory of learning and action that suggests actions in organizations can be categorized as either exploitation or exploration (March 1991)
Prior examinations of IOS reveal multiple goals motivating their use: providing management support, reducing operational costs, improving customer service, and gaining competitive advantages (Chatfield and Yetton 2000; Crook and Kumar 1998; El Sawy, Malhotra, Gosain and Young 1999; Premkumar, Ramamurthy, and Crum 1997).
The paper draw from a theory of learning and action that suggests actions in organizations can be categorized as either exploitation or exploration (March 1991)
Exploitation開發
Exploration調查
Goal 目的 improve operational efficiencies (e.g., through increased standardizati on, tighter process controls, and reduced manual intervention)
Learn about the environment and discover novel ways of creating value or solving old problems.
Task orientations 任務方針
application of variance-reducing strategies to streamline activities, perform them efficiently with a high level of consistency, and achieve greater control over process execution
application of variance-seeking strategies to reassess current approaches to problems and to develop novel solutions
Table 1: Patterns of IT Use by Suppliers
IT Use for Exploitation : Execution of Structured Interfirm Processes
IT Use for Exploration : Execution of Unstructured Interfirm Processes
Goals: Improving, applying, and incrementally refining firm capabilities.Outcomes: Clearly definable benefits, e.g., cost reduction, process consistency, process efficiency.
Goals: Creating new capabilities, devising novel solutions to current problems.Outcomes: ‘Soft’ benefits that are difficult to evaluate in advance (e.g., shared understanding, clearer picture of cause-effect relationships, greater understanding of operating environment).
Examples of IT Use for Exploitation
Examples of IT Use for Exploration
Request for Quotation(RFQ) received electronically by suppliers. Support documents such as detailed part drawings and quality specifications made available online.
Analysis of point-of-sale data to understand patterns in customer preferences, patterns in the sale of complementary products.Analysis of product-return data to detect issues to be addressed at retail store level (e.g., problems in handling, displaying products).
Electronic Transmission of Purchase Orders, Electronic Transmission of Advanced Shipment Notification (ASN).Scheduling delivery windows at warehouse loading docks.
Communicating with repair and service personnel of retailer to diagnose problems encountered in the field.Interactions between supplier’s engineering group and retailer’s service division on diagnosing component failures to inform product redesign, new product design.
Examples of IT Use for Exploitation
Examples of IT Use for Exploration
Electronic Payment Settlement Advice, issued in predefined intervals after material receipt.
Communicating with retail documentation group to improve service manuals and customer manuals.
Transmission of order status reports (e.g., to alert retailer about unanticipated delays, ability to advance ship ‘hot’ items).
Communication between product designers and retail buyers related to new features to be incorporated to improve product’s appeal
Electronic notification of changes (e.g., product specifications, changes to packaging and shipping procedures, specification of Purchase Order quantities).
Interaction between retail planners and supplier's managers to decide stocking levels for different products, size allocations to different stores.
Inventory alerts based on preset ‘triggers’ to communicate stocking levels of products in warehouses.
Ad-hoc communications between supplier and retailers' buying and merchandizing groups (e.g., to signal competitive activity such as special promotions or to respond to stock-outs from unanticipated product demand).
Theoretical BackgroundRelationship-Specific Intangible
Assets
Theoretical BackgroundRelationship-Specific Intangible
AssetsTransaction cost economics suggests
that relationship-specific investments are important sources of value creation in interfirm exchanges (Williamson 1995).
The focus in this paper is on supplier investments that create two types of intangible asset specificity :business-process specificitydomain-knowledge
Transaction cost economics suggests that relationship-specific investments are important sources of value creation in interfirm exchanges (Williamson 1995).
The focus in this paper is on supplier investments that create two types of intangible asset specificity :business-process specificitydomain-knowledge
Theoretical BackgroundBusiness-Process Specificity
Theoretical BackgroundBusiness-Process Specificity
Business-process specificity is the degree to which a supplier’s key business processes such as operating processes, administrative processes, and quality-control processes are particular to the requirements of the focal firm4 in the relationship (Subramani and Venkatraman 2003).
Business-process specificity is an important factor linked to performance in interfirm relationships (Dyer 1996b; Mukhopadhyay and Kekre 2002; Zaheer and Venkatraman 1994).
Business-process specificity is the degree to which a supplier’s key business processes such as operating processes, administrative processes, and quality-control processes are particular to the requirements of the focal firm4 in the relationship (Subramani and Venkatraman 2003).
Business-process specificity is an important factor linked to performance in interfirm relationships (Dyer 1996b; Mukhopadhyay and Kekre 2002; Zaheer and Venkatraman 1994).
Theoretical BackgroundDomain-Knowledge Specificity
Theoretical BackgroundDomain-Knowledge Specificity
Domain-knowledge specificity is the degree to which a supplier’s critical expertise such as competitive analysis and strategy formulation and new-product development are particular to the requirement of the focal firm in the relationship (Subramani and Venkatraman 2003).
Domain-knowledge specificity is reflected in instances of firms relying on suppliers for innovations and for inputs in critical decisions (Dyer and Singh 1998).
Domain-knowledge specificity is the degree to which a supplier’s critical expertise such as competitive analysis and strategy formulation and new-product development are particular to the requirement of the focal firm in the relationship (Subramani and Venkatraman 2003).
Domain-knowledge specificity is reflected in instances of firms relying on suppliers for innovations and for inputs in critical decisions (Dyer and Singh 1998).
Theoretical BackgroundBusiness-Process Specificity and SCMS
Use for Exploitation
Theoretical BackgroundBusiness-Process Specificity and SCMS
Use for Exploitation
Greater levels of SCMS use for exploitation (ITExploit)–using the system to perform structured, repetitive tasks–are accompanied by changes to interorganizational business processes (Clark and Stoddard 1996).
Greater levels of SCMS use for exploitation (ITExploit)–using the system to perform structured, repetitive tasks–are accompanied by changes to interorganizational business processes (Clark and Stoddard 1996).
Theoretical BackgroundBusiness-Process Specificity and SCMS
Use for Exploitation
Theoretical BackgroundBusiness-Process Specificity and SCMS
Use for Exploitation
H1: The higher the level of SCMS use for exploitation, the greater the level of business-process specificity in the exchange.
H1: The higher the level of SCMS use for exploitation, the greater the level of business-process specificity in the exchange.
IT Use for ExploitationBusiness-process
Specificity
H1
Theoretical BackgroundDomain-Knowledge Specificity and SCMS
Use for Exploitation
Theoretical BackgroundDomain-Knowledge Specificity and SCMS
Use for Exploitation
SCMS use for exploration (ITExplore) occurs via the reporting and messaging features of the SCMS. Greater levels of ITExplore reflect increasing reliance on an SCMS for unstructured tasks by suppliers.
SCMS use for exploration (ITExplore) occurs via the reporting and messaging features of the SCMS. Greater levels of ITExplore reflect increasing reliance on an SCMS for unstructured tasks by suppliers.
Theoretical BackgroundDomain-Knowledge Specificity and SCMS
Use for Exploitation
Theoretical BackgroundDomain-Knowledge Specificity and SCMS
Use for Exploitation
H2: The higher the level of SCMS use for exploration, the greater the level of domain-knowledge specificity in the exchange.
H2: The higher the level of SCMS use for exploration, the greater the level of domain-knowledge specificity in the exchange.
IT Use for ExplorationDomain-knowledge
Specificity
H2
Theoretical BackgroundRelative Influence of SCMS Use onRelationship-Specific Investments
Theoretical BackgroundRelative Influence of SCMS Use onRelationship-Specific Investments
Higher levels of ITExplore (e.g., greater communication with the merchandizing group or the quality-control group) allow suppliers to become aware of shortcomings in their business processes and learn about the advantageous business practices adopted by other suppliers (Dyer and Nobeoka 2000; Dyer and Singh 1998).
Higher levels of ITExplore (e.g., greater communication with the merchandizing group or the quality-control group) allow suppliers to become aware of shortcomings in their business processes and learn about the advantageous business practices adopted by other suppliers (Dyer and Nobeoka 2000; Dyer and Singh 1998).
Theoretical BackgroundRelative Influence of SCMS Use onRelationship-Specific Investments
Theoretical BackgroundRelative Influence of SCMS Use onRelationship-Specific Investments
H3a: The association of ITExploit with business-process specificity is stronger than the association of ITExplore with business-process specificity.
H3a: The association of ITExploit with business-process specificity is stronger than the association of ITExplore with business-process specificity.
IT Use for ExploitationBusiness-process
Specificity
H3a
IT Use for Exploration
Theoretical BackgroundRelative Influence on
Domain-Knowledge Specificity
Theoretical BackgroundRelative Influence on
Domain-Knowledge Specificity
ITExploit can reveal information about retailer processes that are articulated and formalized in implementing the SCMS. Even in routine use of SCMS for structured interorganizational processes (e.g., to transmit quality-control reports), suppliers may become aware over time of the retailer’s internal processes for formulating quality standards, the subjective judgments involved in quality-control procedures, the individuals charged with making these judgments, and the discretion to permit exceptions possessed by individuals in the quality-management group.
ITExploit can reveal information about retailer processes that are articulated and formalized in implementing the SCMS. Even in routine use of SCMS for structured interorganizational processes (e.g., to transmit quality-control reports), suppliers may become aware over time of the retailer’s internal processes for formulating quality standards, the subjective judgments involved in quality-control procedures, the individuals charged with making these judgments, and the discretion to permit exceptions possessed by individuals in the quality-management group.
Theoretical BackgroundRelative Influence on
Domain-Knowledge Specificity
Theoretical BackgroundRelative Influence on
Domain-Knowledge Specificity
H3b: The association of ITExplore with domain-knowledge specificity is stronger than the association of ITExploit with domain-knowledge specificity.
H3b: The association of ITExplore with domain-knowledge specificity is stronger than the association of ITExploit with domain-knowledge specificity.
IT Use for Exploration
IT Use for Exploitation
H3b Domain-knowledge Specificity
Theoretical BackgroundLinking SCMS Use to Benefits : Mediation byRelationship-Specific Intangible Investments
Theoretical BackgroundLinking SCMS Use to Benefits : Mediation byRelationship-Specific Intangible Investments
H4: The higher the level of SCMS use for exploitation, the higher the levels of operational and strategic benefits achieved through the leverage of relationship-specific business processes.
H4: The higher the level of SCMS use for exploitation, the higher the levels of operational and strategic benefits achieved through the leverage of relationship-specific business processes.
Operational BenefitsBusiness-process
Specificity
H4
Strategic Benefits
Theoretical BackgroundLinking SCMS Use to Benefits : Mediation byRelationship-Specific Intangible Investments
Theoretical BackgroundLinking SCMS Use to Benefits : Mediation byRelationship-Specific Intangible Investments
H5: The higher the level of SCMS use for exploration, the higher the levels of operational and strategic benefits achieved through the leverage of relationship-specific domain knowledge.
H5: The higher the level of SCMS use for exploration, the higher the levels of operational and strategic benefits achieved through the leverage of relationship-specific domain knowledge.
Operational Benefits
Domain-knowledge Specificity
H5
Strategic Benefits
Theoretical BackgroundLinking SCMS Use to Benefits : Mediation byRelationship-Specific Intangible Investments
Theoretical BackgroundLinking SCMS Use to Benefits : Mediation byRelationship-Specific Intangible Investments
H6: Higher levels of operational benefits in the exchange are associated with higher levels of competitive performance.
H6: Higher levels of operational benefits in the exchange are associated with higher levels of competitive performance.
Competitive Performance
Operational Benefits
H6
Theoretical BackgroundLinking SCMS Use to Benefits : Mediation byRelationship-Specific Intangible Investments
Theoretical BackgroundLinking SCMS Use to Benefits : Mediation byRelationship-Specific Intangible Investments
H7: Higher levels of strategic benefits in the exchange are associated with higher levels of competitive performance.
H7: Higher levels of strategic benefits in the exchange are associated with higher levels of competitive performance.
Competitive Performance
Strategic Benefits H7
Theoretical BackgroundControl Variables
Theoretical BackgroundControl Variables
To discount rival hypotheses, the model incorporates four variables influencing supplier benefits:Product uncertainty (產品的不確定性)retailer replaceability (零售商的替換性
)supplier size (供應商的規模)length of association between firms (兩
家公司合作時間長久度)
To discount rival hypotheses, the model incorporates four variables influencing supplier benefits:Product uncertainty (產品的不確定性)retailer replaceability (零售商的替換性
)supplier size (供應商的規模)length of association between firms (兩
家公司合作時間長久度)
Theoretical BackgroundControl Variables
Theoretical BackgroundControl Variables
Product uncertainty (產品的不確定性)
Uncertainty arising from shorter product life cycles increases information processing demands in relationships (Bensaou and Venkatraman 1995).
Product uncertainty (產品的不確定性)
Uncertainty arising from shorter product life cycles increases information processing demands in relationships (Bensaou and Venkatraman 1995).
Theoretical BackgroundControl Variables
Theoretical BackgroundControl Variables
retailer replaceability (零售商的替換性)
Low levels of retailer replaceability can reflect a cooperative climate in the relationship and therefore be positively related to supplier benefits (Dyer and Singh 1998).
retailer replaceability (零售商的替換性)
Low levels of retailer replaceability can reflect a cooperative climate in the relationship and therefore be positively related to supplier benefits (Dyer and Singh 1998).
Theoretical BackgroundControl Variables
Theoretical BackgroundControl Variables
supplier size (供應商的規模) Including firm size in the model contr
ols for factors such as relative bargaining power and size of the resource base that can affect supplier benefits (Zaheer and Venkatraman 1994).
supplier size (供應商的規模) Including firm size in the model contr
ols for factors such as relative bargaining power and size of the resource base that can affect supplier benefits (Zaheer and Venkatraman 1994).
Theoretical BackgroundControl Variables
Theoretical BackgroundControl Variables
length of association between firms (兩家公司合作時間長久度)
Including the length of association as a control variable has two advantages. First, it helps control for the potential effects of relationship duration on supplier benefits. Second, it controls for recursive relationships, if any, between dependent and independent variables (Subramani and Venkatraman 2003).
length of association between firms (兩家公司合作時間長久度)
Including the length of association as a control variable has two advantages. First, it helps control for the potential effects of relationship duration on supplier benefits. Second, it controls for recursive relationships, if any, between dependent and independent variables (Subramani and Venkatraman 2003).
MethodsData
MethodsData
Data : Canada-AlphaAlpha has a reputation for carrying hi
gh-quality products and using rigorous supplier qualification and audit processes.
The SCMS was a proprietary system developed by Alpha.
Data : Canada-AlphaAlpha has a reputation for carrying hi
gh-quality products and using rigorous supplier qualification and audit processes.
The SCMS was a proprietary system developed by Alpha.
MethodsResponse Rate and Nonresponse Bias
MethodsResponse Rate and Nonresponse Bias
The final survey instrument : mail 640 supplier firms
Respondents : 211 ( 33% )Use the SCMS: 131(62%) (在最近 2
年內有使用 SCMS 與 Alpha 公司做交易)
The final survey instrument : mail 640 supplier firms
Respondents : 211 ( 33% )Use the SCMS: 131(62%) (在最近 2
年內有使用 SCMS 與 Alpha 公司做交易)
MethodsData AnalysisMethods
Data Analysis
PLS Graph :用來評估 quality (品質)和 measurement (測量)
PLS Graph :用來評估 quality (品質)和 measurement (測量)
MethodsTesting Direct Effects
MethodsTesting Direct Effects
Hypotheses postulating direct effects between constructs (H1, H2, H6, and H7) based on the magnitude and significance of paths computed by PLS Graph. I tested hypotheses regarding difference in the strengths of multiple paths (H3a, H3b) by comparing the path magnitudes calculated by PLS.
Hypotheses postulating direct effects between constructs (H1, H2, H6, and H7) based on the magnitude and significance of paths computed by PLS Graph. I tested hypotheses regarding difference in the strengths of multiple paths (H3a, H3b) by comparing the path magnitudes calculated by PLS.
MethodsTesting Mediated Effects
MethodsTesting Mediated Effects
The mediation hypotheses (H4, H5) in two ways. The first approach compares the research model (with mediated paths from SCMS use to benefits) to a competing model (incorporating a direct link between the constructs). Because the two models are nested, model-comparison procedures using PLS results enable statistical conclusions to be reached regarding model fit. The second approach uses mediation-analysis techniques (Baron and Kenny 1986; Hoyle and Kenny 1999) to calculate the magnitude and significance of individual mediated paths based on values of standardized direct paths computed in PLS.
The mediation hypotheses (H4, H5) in two ways. The first approach compares the research model (with mediated paths from SCMS use to benefits) to a competing model (incorporating a direct link between the constructs). Because the two models are nested, model-comparison procedures using PLS results enable statistical conclusions to be reached regarding model fit. The second approach uses mediation-analysis techniques (Baron and Kenny 1986; Hoyle and Kenny 1999) to calculate the magnitude and significance of individual mediated paths based on values of standardized direct paths computed in PLS.
ResultsResults
經由 PLS Graph 及表 2 的中位數、標準差,針對 H1~H7 假設做驗證。
經由 PLS Graph 及表 2 的中位數、標準差,針對 H1~H7 假設做驗證。
假設 結果Hypothesis
1Supported path = 0.22, t =
2.42, p < .01Positive Significant
Hypothesis 2
Supported path = 0.44, t= 5.77, p < .01
Positive Significant
Hypothesis 3a
Supported difference = 0.173, t = 1.86, p < 0.05
Positive Significant
Hypothesis 3a
Supported difference = 0.243, t = 3.30, p < .01
Positive Significant
Hypothesis 4
Supported Positive Significant
Hypothesis 5 Supported NotSignificant
Hypothesis 6
NotSupported
path = 0.010, t = 0.1, ns
Hypothesis 7
Supported path = 0.265, t = 3.291, p < .01
Positive Significant
Discussion and Conclusions
Discussion and Conclusions
The study contributes to the literature by providing evidence : suppliers benefit by participating in supply chai
n management initiatives of network leaders benefits from SCMS use are mediated by suppli
ers’ deployment of relationship-specific business processes and domain knowledge in the exchange
the profile of relationship-specific investments is linked to patterns of SCMS use
The study contributes to the literature by providing evidence : suppliers benefit by participating in supply chai
n management initiatives of network leaders benefits from SCMS use are mediated by suppli
ers’ deployment of relationship-specific business processes and domain knowledge in the exchange
the profile of relationship-specific investments is linked to patterns of SCMS use