Advancements in the capability of information technology (IT) have rapidly changed the face of industry over the past decade. Functions that have been particularly impacted, at least from a theoretical perspective, are supply chain management (SCM) and logistics. Supply chain management, founded on collaboration between supply chain partners (Golicic, Foggin, and Mentzer 2003; Narasimhan and Jayaram l998;Stank, Keller, and Daugherty 2001), is intended to bring performance benefits to the organization. Consider the recent collaborative relationship between Sears and Michelin which has resulted in a 25% reduction in inventories for both companies (Steerman 2003). Similarly, General Motors' new collaborative relationship with its suppliers has reduced vehicle development cycle times from four years to eighteen months (Gutman 2003). This type of collaboration is only made possible through the sharing of large amounts of information along the supply chain, including operations, logistics, and strategic planning data.Information sharing provides firms with forward visibility, improving production planning, inventory management, and distribution. This collaboration is facilitated by the existence of an efficient and effective information technology (IT) system. Information technology (IT), which allows for the transmission and processing of information necessary for synchronous decision making, can be viewed as the backbone of the supply chain business structure (Grover and Malhotra l999; Kent and Mentzer 2003). For this reason the literature often refers to IT as an essential enabler of SCM activities (Mabert and Venkataramanan l998).Advancements in IT capabilities have significantly improved the extent of internal and external organizational information sharing. IT capability has been positively linked to firm performance (Bharadwaj 2000;Kearns and Lederer 2003) and shown to have the potential of providing a significant competitive advantage to firms (Earl l993; Ives and Jarvenpaa l99l; Kathuria, Anandarajan, and Igbaria l999). Similarly, firm collaboration has been shown to have a positive impact on performance (Stank, Keller, and Daugherty 2001). However, the collective relationship between JOURNAL
The philosophy of supply chain management (SCM) is founded on collaboration among supply chain partners (Andraski, l998;Stank, Keller, and Daugherty, 2001). Central to collaboration is the exchange of large amounts of information along the supply chain, including planning and operational data, real time information, and communication. Information is seen as the "glue" that holds together the business structures that allow supply chains to be agile in responding to competitive challenges (Child and Faulkener, l998; Evans and Wurster, l997). The backbone of the supply chain business structure is information technology (IT) which is used to acquire, process, and transmit information among supply chain partners for more effective decision making. IT can be viewed as serving as an essential enabler of SCM activities (Mabert and Venkataramanan, l998).Exponential growth of technological capability has provided numerous choices in IT applications geared toward improving functional integration, coordination, and decision making. Selecting appropriate IT applications is a daunting task for managers given the wide array of rapidly changing and costly technologies, with often only anecdotal evidence of achievable performance measures. Decisions relative to adoption of specific IT applications need to consider alignment with the organization's competitive priorities (Grover and Malhotra, l997; Huff and Beattie, l985). Organizational competitive priorities should drive the types of IT applications used, with the anticipation that they will directly lead to measurable benefits. Selection of proper IT applications should be based on a clear understanding of the business model and desired benefits (Kathuria, Anandarajan, and Igbaria, l999).Research to date has shown that IT has the overall potential of providing a significant competitive advantage to firms (Earl, l993; Ives and Jarvenpaa, l991). We postulate that IT sophisticated companies focus on a specific set of competitive priorities, different from their less technologically sophisticated counterparts. Further, based on the literature, we assume some degree of alignment between these priorities, the specific IT applications selected by these firms, and the JOURNAL OF BUSINESS LOGISTICS, Vol.23, No.1, 2002 65 measurable benefits achieved. Using this conceptual framework, our study profiles organizational differences between firms based upon level of IT use. Three key dimensions are examined: 1) organizational competitive priorities; 2) choice of specific IT applications; and 3) performance measures achieved. BACKGROUND
This article reviews findings of industrial location literature. Prior to the 1970s, the conventional view was that access to markets, labor, raw materials, and transportation were the dominant locational factors. More recent studies indicate that the traditional factors are still most important, but their dominance has been reduced as productivity, education, taxes, community attitudes toward business, and other factors have been recognized as influential. The most recently recognized locational determinants give additional scope to policies to enhance a community's economic competitiveness.
The post-WWII economic expansion of economies such as Japan, South Korea, Hong Kong, Taiwan, Singapore, and more recently China and India was enabled to a significant degree by the increasingly complex, global supply chain networks of large Original Equipment manufacturers (OEMs) in the United States, European Union, and Japan. By linking buyers and suppliers across countries and industries, supply chain management (SCM) practices have a large impact on the economic fortunes of companies and countries throughout the world. Nowhere has the effect of this mutual interdependence been felt more strongly than between the U.S. companies and the Asia-Pacific market. Although the benefits of SCM are well documented, some evidence suggests that the reality of SCM implementation can create additional pressures for suppliers. We identify key problem areas experienced by suppliers and their link to the type of information shared by buying firms. The problem area experienced by most suppliers relates to issues of dependence in the alliance. Mere information sharing is insufficient for a successful alliance, and more information can be associated with a number of problems. For example, lack of information sharing can be 175 buyer expecting excessive support. However, greater information sharing can be associated with a supplier's perception of the buyer passing on an excessive burden. Sharing of financial information is perceived as intrusive and controlling. These apparent contradictions uncover the complexity of the supply chain alliance. The moderating factors appear to be open communication and joint sharing of problem solving procedures-factors identified by suppliers that define a world-class buyer.
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