This paper presents findings from an exploratory study that analyzes the drivers and outcomes of e-business technology use in the supply chain. Using a combination of case studies and survey data from a diverse sample of industries, the research examines how industry context, firm characteristics and firm-level strategic resources, such as purchasing teams, influence the exploitation of e-business technologies and the relationship between e-business technology use and firm performance. Based on a synthesis of related literatures from transaction cost economics and the relational view of the supply chain, a two-dimensional framework for e-business technology is proposed with transactional and relational dimensions. However, empirical analysis indicated that transactional technologies can be further subdivided into two factors: dyadic cooperation and price determination. Significant differences were found between the two dimensions in terms of their overall levels of adoption, with dyadic coordination being the most widely adopted. In addition, the development of strategic resources expanded, in particular internal and customer teams, the use of e-business technologies expanded. Purchasing organizational structure and firm size also were positively related to the adoption of transactional e-business technologies. Finally, of particular importance to practitioners, e-business technologies targeted at reducing dyadic coordination costs lead to improved financial performance. #
Predicts that in the decade ahead, the purchasing function will have to
shed its service and operational perspective and take on the challenge
of effective contribution to organizational goals and strategies.
Describes how, in this evolution, the make or buy decision and
increasing reliance on outsourcing will change the purchasing manager
into a manager of integrated operations.
Increased attention on supply chain management has highlighted the pivotal role that supply chain management and purchasing teams can play in the overall competitiveness of many firms. This paper presents findings from an exploratory study that analyzes the impact of purchasing’s strategic role, industry context and purchasing organizational structure, on the use of various forms of purchasing teams. Using survey data from a broad sample of industries, we found that team usage was a two‐dimensional construct: internal teams and councils, and customer teams. In addition, purchasing’s strategic role comprised two factors: product and technology planning, and external systems planning. After controlling for firm size, purchasing’s strategic role was positively related to the greater use of internal teams and councils, but not customer teams. Industry context also played a role in the usage of teams, with internal teams and councils more extensively used by the firms that manufactured discrete goods. Meanwhile, firms in the service sector favored the use of customer teams. Finally, both industry context and purchasing’s organizational structure were related to the strategic role assumed by purchasing, with a decentralized structure tending to reduce that strategic role.
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