Electronic Supply Chain Partnerships: Reconsidering Relationship Attributes in Customer-Supplier Dyads

Electronic Supply Chain Partnerships: Reconsidering Relationship Attributes in Customer-Supplier Dyads

Rebecca Angeles (University of New Brunswick Fredericton, Canada) and Ravinder Nath (Creighton University, USA)
Copyright: © 2004 |Pages: 44
DOI: 10.4018/978-1-59140-253-4.ch003
OnDemand PDF Download:


This chapter is focused on discovering important trading partner selection criteria that are relevant in electronic data interchange (EDI)-enabled relationships. Increasing implementation of integrated supply chain management (SCM) and collaborative commerce initiatives call for the cultivation and maintenance of long-term strategic partnerships such as those engendered by EDI. A body of evidence shows that hub firms (i.e., firms that initiate technology-enabled partnership networks) are getting choosier about their trading partners. However, there is a need to understand specific trading partner attributes that are more likely to ensure successful long-term relationships. Using the survey technique, this study brought forth respondents from customer and supplier firms engaged in EDI applications; the final respondent sample ended up with a pool of firms primarily in the manufacturing sector. Factor analysis uncovered six trading partner selection factors which both customer and supplier firms thought were critical in selecting partners: strategic commitment of top management, readiness for high-level EDI, joint partnering, trading partner flexibility, communications, and EDI infrastructure. Overall, customer firms regarded a number of trading partner selection factors with a higher level of criticality than did the supplier firms. Customer firms have historically been ahead in initiating EDI networks that may partly explain their higher level of awareness of the implementation requirements involved. This is reflected, for instance, in one other finding that shows customer firms highly valuing the trading partner flexibility and joint partnering factors, which is indicative of their understanding of the collaboration process. Specific items of the trading partner selection factors that correlate highly with many EDI network system success measures are also articulated in the study. The effect of the network initiator status was also taken into consideration after looking at the firms’ perceptions of the success of the EDI network. Customer firms perceived their EDI systems to be successful whether they had a customer firm initiator in their network. Network initiator status appears to have a marginal effect on customer firms in this way. On the other hand, a supplier firms with a supplier initiator in the network perceived the system as more successful than supplier firms with a customer initiator. It behooves managers of systems using EDI, particularly of supplier firms, to understand the findings of this study in order to enhance their position as a desirable potential trading partner for customer firms that they value. Unless the supplier is in the rare position of having high bargaining power in the marketplace, for instance, having a near monopoly over certain goods or services, it behooves the supplier to enhance its position in the eyes of the customers. This is especially necessary in marketplace segments where suppliers fiercely compete for targeted customer accounts. This study’s findings have important implications for strong partnerships involved in integrated supply chain management initiatives and collaborative commerce.

Complete Chapter List

Search this Book:
Table of Contents
Chapter 1
Yihua Sheng, J. Michael Pearson, Leon Crosby
IT-based business initiatives, such as ERP and BPR, require high computer self-efficacy among employees because such changes require large-scale use... Sample PDF
An Empirical Examination of the Impact Organizational Culture Has on Employees' Computer Self-Efficacy
Chapter 2
Ram S. Sriram, Gopal V. Krishnan, Kam-Wah Lai
This chapter examines the value relevance of disclosures about IT expenditures. Using information about the amount of consulting fees paid to the... Sample PDF
Information Systems Expenditures and Firm Value: Further Evidence from Financial Services Industry
Chapter 3
Rebecca Angeles, Ravinder Nath
This chapter is focused on discovering important trading partner selection criteria that are relevant in electronic data interchange (EDI)-enabled... Sample PDF
Electronic Supply Chain Partnerships: Reconsidering Relationship Attributes in Customer-Supplier Dyads
Chapter 4
Tanya J. McGill, Jane E. Klobas, Valerie J. Hobbs
DeLone and McLean’s (1992) model of information systems success has received much attention among researchers. This study applies an adaptation of... Sample PDF
Perceptions, User Satisfaction and Success: Testing the DeLone and McLean Model in the User Developed Application Domain
Chapter 5
Lei-da Chen, Steve Haney, Alex Pandzik, John Spigarelli, Chris Jesseman
While more small to medium size enterprises begin to conduct business over the Internet, the degrees of success in these endeavors vary. There is an... Sample PDF
A Qualitative Study of Small Business Internet Commerce: Critical Success Factors and Challenges
Chapter 6
Iftikhar U. Sikder, Aryya Gangopadhyay
There are numerous technical and organizational challenges in the design and implementation of spatial decision support systems. Part of the problem... Sample PDF
Collaborative Decision Making in Web-Based GIS
Chapter 7
Lucila Perez, Michel Plaisent, Prosper Bernard, Lassana Maguiraga
Decision support technology, Expert Systems, Executives Information Systems, and Artificial Neural Networks, have been reported to be useful tools... Sample PDF
Novice's Performance and Satisfaction Improvement Through Expert Decision Support Usage
Chapter 8
Mark I. Hwang
A knowledge base representing the state of information systems success research in the MIS formative period of 1981-87 was published previously. The... Sample PDF
A Knowledge Base for Information Systems Success Research
Chapter 9
Chung S. Kim, Dane K. Peterson
This study examined the perceptions of Information Systems (IS) developers from the U.S. and Korea with regards to the strategies that are... Sample PDF
A Comparison of the Perceived Importance of Information Systems Development Strategies by Developers from the United States and Korea
Chapter 10
Saonee Saonee, Joseph S. Valacich, Suprateek Sarker
Trust is a major factor influencing the cohesiveness among virtual team members. While recent research in the fields of information systems and... Sample PDF
Virtual Team Trust: Instrument Development and Validation in an IS Educational Environment
Chapter 11
Todd J. Hostager, Scott W. Lester, Kathryn J. Ready, Marilyn Bergmann
A 2x2 factorial controlled experiment was conducted to examine the effects of agenda structure and facilitator style on participant satisfaction and... Sample PDF
Matching Facilitator Style and Agenda Structure in Group Support Systems: Effects on Participant Satisfaction and Group Output Quality
Chapter 12
V.K. Khandelwal, Petter Gottschalk
This chapter explores some important and contemporary issues concerning the knowledge-based view of the firm. Law firms represent an industry that... Sample PDF
Information Technology Support for Interorganizational Knowledge Transfer: An Empirical Study of Law Firms in Norway and Australia
Chapter 13
Nurit L. Friedman, Nava Pliskin
Managers of healthcare organizations are increasingly aware that the potential of medical information systems exceeds mere support of routine... Sample PDF
Demonstrating Value-Added Utilization of Existing Databases for Organizational Decision-Support
Chapter 14
John D. Wells, Traci J. Hess
Many businesses have made or are making significant investments in data warehouses that reportedly support a myriad of decision support systems... Sample PDF
Understanding Decision-Making in Data Warehousing and Related Decision Support Systems: An Exploratory Study of Customer Relationship Management Application
Chapter 15
Kristina Setzekorn, Vijayan Sugumaran, Naina Patnayakuni
Effective decision-making within and across organizations is of strategic importance as the global business environment becomes more complex.... Sample PDF
A Comparison of Implementation Resistance Factors for DMSS Versus Other Information Systems
Chapter 16
Gary Baker
Technological advances have an ever-increasing impact on our society. Globalization and the changing structures of organizations have created... Sample PDF
The Effects of Synchronous Collaborative Technologies on Decision Making: A Study of Virtual Teams
Chapter 17
Mark T. Dishaw, Diane M. Strong
Computer-Aided Software Engineering (CASE) tools have been advocated for improving maintainer productivity and the quality of maintained software.... Sample PDF
The Effect of Task and Tool Experience on Maintenance CASE Tool Usage
About the Editor
About the Authors