Electronic commerce applications for supply chain integration and competitive capabilities An empirical study

• Published in: Benchmarking : an international journal Vol. 17; no. 4; pp. 539 - 560
• Main Authors: Hong, Paul, Tran, Oahn, Park, Kihyun
• Format: Journal Article
• Language: English
• Published: Bradford Emerald 01.01.2010; Emerald Group Publishing Limited
• Subjects: Communication; Communications technology; Competition; Computer networks; Connectivity; Cost control; Customer relationship management; Customer services; E-Business; EDI; Electronic commerce; Electronic data interchange; Electronics; Elektronischer Datenaustausch; Empirical analysis; Flexibility; Information sharing; Information systems; Information technology; Internet; Inventory; Lieferkette; Literature reviews; Manufacturers; Manufacturing; Methodology; Operations management; Software; Studies; Suppliers; Supply chain management; Supply chains; Vertical integration; Welt; Wettbewerbsstrategie; Wireless access points
• ISSN: 1463-5771; 1758-4094
• DOI: 10.1108/14635771011060585

The purpose of this paper is to empirically examine the impacts of supplier- and customer-oriented electronic communication technologies (ECT) (electronic data interchange (EDI) and internet-based) on supply chain integration and manufacturing competitive capabilities (flexibility and quality). The research model is based on resource-based view of technology use, ECTs, and supply chain management literature. Data from 711 international manufacturing firms International Manufacturing Strategy Survey (IMSS IV) are analyzed using exploratory factor analysis and structural equation modeling to test the proposed relationships. The results suggest: the importance of applying two specific ECTs (EDI and internet-based) for both supplier and customer integration; and the direct impact of supplier integration and customer integration on manufacturing competitive capabilities. Except for perceptual biases inherent to survey methodology, this research provides rich implications on ECTs (particularly, EDI and internet-based) on supply chain integration and manufacturing competitive capabilities. The findings of this research provide practical management insights on ECTs investment and deployment practices. Creation and delivery of values require effective integration of technologies for key performance outcomes across suppliers, customers and internal business processes. This paper fills the research gap by presenting a research model and empirically validates how ECTs impact on quality and flexibility based on rich empirical data of 711 firms of manufacturing firms.