Ming‐Hui Huang, Jyun‐Cheng Wang, Shihti Yu and Chui‐Chen Chiu
E‐businesses using enterprise resource planning systems as the information infrastructure generate a tremendous amount of information, including information about customers…
Abstract
E‐businesses using enterprise resource planning systems as the information infrastructure generate a tremendous amount of information, including information about customers, suppliers, markets, transaction costs, the prices at which products are bought and sold, and order‐fulfillment rates, etc. To turn the information contained in these systems into marketable information goods would be a key to gaining a competitive advantage and optimizing market exchange efficiencies. Treating involved organizations as an end‐to‐end network and applying an economic analysis, five propositions are developed to capture this value‐added process. Conditions for market equilibriums are specified.
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Martin Müller and Stefan Seuring
The purpose of this paper is to address the intersection between supply chain coordination and information technology (IT) by building on transaction cost analysis. Literature…
Abstract
Purpose
The purpose of this paper is to address the intersection between supply chain coordination and information technology (IT) by building on transaction cost analysis. Literature frequently predicts that the application of IT reduces transaction costs. Often, no real explanation is given, and the impact of IT on supply chain management (SCM) is not assessed.
Design/methodology/approach
Discussing the application of IT in SCM, a classification of different forms of collaboration (integration) is presented. Building on the essential transaction cost elements of specificity and uncertainty, the (high) costs of transactions in different supply chain integration forms are revealed.
Findings
The claim that IT reduces transaction costs is objected to in its general form. The reduction of transaction costs is dependent on the form of supplier integration. Through market transactions (not managed process links) and monitored process links, a reduction of transaction costs by using IT is likely. In the case of managed process links and non‐member process links, a reduction of transaction costs is achieved only if certain conditions apply. A conceptual framework is presented, using uncertainty and specificity to explain which IT applications can reduce transaction costs in a supply chain.
Research limitations/implications
The research is based on conceptual thought. Beyond this framework for reducing IT‐based transaction costs in supply chains empirical research is needed to validate the findings.
Practical implications
Companies need to be aware that applying IT in their supply chain is not sake in itself. The classification provided in this paper support‐related decision by pointing out that different IT‐solutions fit different business process links.
Originality/value
The paper presents a more detailed analysis of the impacts IT applications have in SCM. This includes a discussion on how uncertainty and specificity influence the implementation of IT in supply chains.