The Strategic Implications of E-Network Integration and Transformation Paths for Synchronizing Supply Chains

Abstract

Streamlining information flows across the physical supply chain is crucial for successful supply chain management. This study examines different structures of e-networks (i.e., virtual supply chains linked via electronic information and communication technologies) and their maximum capabilities to gain e-network benefits. Further, this research explores four levels of e-network integration based on a 2x2 e-network technology and transaction integration matrix. Of the four levels, an e-network with high e-technology/high e-transaction integration appears to be most desirable for the companies that aspire to achieve the maximum benefits from their IT investments. Finally, this study identifies three alternative transformation paths toward a powerful high e-technology/high e-transaction integration network and discusses strategic implications of selecting those paths, in terms of e-network structures, availability of financial and technical resources, supply chain members’ collaborative planning, e-security mechanisms, and supply chain size.