IT-Enabled Integration of Business Relationships in the Steel Industry Context

Abstract

Companies engage in many business relationships; however, the number is decreasing constantly, so existing relationships are increasingly valuable. The purpose of this chapter is to highlight how inter-organizational relationships can be seen as a source of competitive advantage and how, in order to survive in a hyper-competitive landscape, key relationships are integrated with new information technology solutions, such as ERP. This chapter focuses on the changes brought about by technology integration in the context of the steel industry with the help of a longitudinal case study. The chapter sheds some light on factors affecting the changes occurring in business relationships and illustrates how those alterations can be managed. It seems that information technology integration within a business relationship is a complex process that depends on characteristics of the adopted technology as well as the relationship. Subsequently, implications are discussed together with suggestions for future research. Lastly, the limitations are briefly stated.