Exploring Information Technology and Supply Chain Governance

Abstract

The aim of this study is to investigate how information technology (IT) investment supports and relates to SCG and its conceptions (transactional and relational). The authors conducted exploratory case studies in two large Brazilian companies and two major suppliers, interviewing top supply chain executives. In the first case, they identified a more relational type of governance that was mainly based on the company's relationship with its suppliers which was driven by the desire to achieve a greater market share. IT investments focused on sales and operations planning projects where all systems were being integrated. In the second case, they identified transactional governance as the predominant form. This reflects the presence of a great number of suppliers, low partnership and low supply on time delivery rate. IT investments are being made to achieve more relational governance through expenditure on e-procurement and greater integration with their suppliers using ERP.

Role of management capability and web-enabled direct procurement in creating competitive direct procurement advantage

“…The electronic processing of inter-organisational trading data improves the timeliness and accuracy of information, leading to greater efficiency in procurement processes (Ranganathan et al, 2011;Dolci et al, 2015;Moynihan and Wang, 2015). Web-enabled direct procurement allows a firm to create a suitable environment for effectively conducting direct procurement activities, leading to a competitive advantage.…”

“…With advances in information and communication technologies, a number of web-based IT solutions have emerged that allow firms to conduct effective inter-organisational transactions (Ranganathan et al, 2011;Sundarakani et al, 2012;Dolci et al, 2015;Moynihan and Wang, 2015;Varma and Khan, 2015). Web-based platform provides a vast hypermedia computer environment, which substantially reduces communication and information exchange constraints.…”

Role of management capability and web-enabled direct procurement in creating competitive direct procurement advantage

“…The electronic processing of inter-organisational trading data improves the timeliness and accuracy of information, leading to greater efficiency in procurement processes (Ranganathan et al, 2011;Dolci et al, 2015;Moynihan and Wang, 2015). Web-enabled direct procurement allows a firm to create a suitable environment for effectively conducting direct procurement activities, leading to a competitive advantage.…”

“…With advances in information and communication technologies, a number of web-based IT solutions have emerged that allow firms to conduct effective inter-organisational transactions (Ranganathan et al, 2011;Sundarakani et al, 2012;Dolci et al, 2015;Moynihan and Wang, 2015;Varma and Khan, 2015). Web-based platform provides a vast hypermedia computer environment, which substantially reduces communication and information exchange constraints.…”

“…The emergence of benefits resulting from implementing web-enabled direct procurement means that capabilities in process efficiency and integrated planning can be enhanced. For example, the process efficiency capability is enhanced because the electronic management of direct procurement processes results in benefits such as shortened direct material purchasing times and reduced transaction errors, sourcing costs, and administrative tasks associated with monitoring and controlling procurement transactions (Tai et al, 2010;Chopra and Meindl, 2012;Dolci et al, 2015). Web-enabled direct procurement also enhances integrated planning by allowing firms to reengineer their internal processes and streamline their processes of procurement, production, and inventory, resulting in benefits such as reducing mistakes in direct procurement and the systematic integration of direct material procurement requirements (Rai et al, 2012;Tai, 2013).…”