The business value of digital supply networks: A program of research on the impacts of globalization
AbstractThe "Networked Economy" describes alliances of firms that manage globally distributed supply networks. In the best of all worlds, this interactive flow of information among member firms will result in efficient and effective balance of supply and demand. Unfortunately, supply networks suffer from poor and inexact information, and, in the worst case, information is unavailable where and when it is needed. Such entropy creates errors and limits responsiveness of processes leading to situations where there is too much or too little inventory at a given stage in a supply network. These complications are exacerbated across transnational supply chain networks. This paper offers theoretical perspectives, a case study, and outline of a research proposal to help address these challenges and develop insights into the best practices of transnational digital supply networks. High level questions include: What are the defining characteristics of high performing digital supply networks? How does information sharing impact the error and responsiveness of supply network processes and, consequently, supply network performance? How do international outsourcing practices affect network outcomes? These questions are theoretically examined and used to formulate specific hypotheses. An initial investigation of this theoretical formulation is conducted using a case study approach of a global plastics supply network. We propose a program of follow-up empirical work based on a broad field study of high performing supply networks. After a rigorous process for developing the instrumentation through semi-structured interviews, we expect to gather information about over 300 network configurations. As initial empirical evidence for going beyond dyadic exploration of supply networks, we present a case analysis of a plastic industry supply network, the Omnexus electronic trading network. In this analysis, we show how network externalities lead to more efficient flows of information and to more dynamic responses. The overall performance of all firms participating in this network should be enhanced over time. The major contribution of these ongoing studies will be new theoretical and empirical insights into the pathologies and metabolism of global digital supply networks. Specifically, we intend to delineate externalities of supply networks that are not embraced by exclusively dyadic perspectives, as well as the salient factors that complicate the interaction of supply network behavior across national boundaries. We will develop, test and measure novel constructs such as networked organizational performance and error amplification, unveiling systematic knowledge about the relationships between these factors across socio-geographic regions.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Journal of International Management.
Volume (Year): 11 (2005)
Issue (Month): 2 (June)
Contact details of provider:
Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/601266/description#description
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kreps, David M., 1990. "Game Theory and Economic Modelling," OUP Catalogue, Oxford University Press, number 9780198283812.
- Marek Korczynski, 1996. "The Low-Trust Route To Economic Development: Inter-Firm Relations In The Uk Engineering Construction Industry In The 1980s And 1990s," Journal of Management Studies, Wiley Blackwell, vol. 33(6), pages 787-808, November.
- Kreps, David M, 1996. "Markets and Hierarchies and (Mathematical) Economic Theory," Industrial and Corporate Change, Oxford University Press, vol. 5(2), pages 561-95.
- Thomas W. Malone, 1987. "Modeling Coordination in Organizations and Markets," Management Science, INFORMS, vol. 33(10), pages 1317-1332, October.
- Seidmann, A. & Sundarajan, A., 1997. "Sharing Logistics Information Across Organizations: Technology, Competition and Contracting," Papers 97-01, Rochester, Business - Operations Management.
- Hau L. Lee & Kut C. So & Christopher S. Tang, 2000. "The Value of Information Sharing in a Two-Level Supply Chain," Management Science, INFORMS, vol. 46(5), pages 626-643, May.
- Laurie Hunter & Diane Sinclair, 1996. "A 'Partnership' Route To Human Resource Management?," Journal of Management Studies, Wiley Blackwell, vol. 33(2), pages 235-257, 03.
- Hau L. Lee & V. Padmanabhan & Seungjin Whang, 1997. "Information Distortion in a Supply Chain: The Bullwhip Effect," Management Science, INFORMS, vol. 43(4), pages 546-558, April.
- Carole E. Hill & Karen D. Loch & Detmar Straub & Kamal El-Sheshai, 1998. "A Qualitative Assessment of Arab Culture and Information Technology Transfer," Journal of Global Information Management (JGIM), IGI Global, vol. 6(3), pages 29-38, July.
- Plott, Charles R, 1982. "Industrial Organization Theory and Experimental Economics," Journal of Economic Literature, American Economic Association, vol. 20(4), pages 1485-1527, December.
- Ross, Stephen A, 1973. "The Economic Theory of Agency: The Principal's Problem," American Economic Review, American Economic Association, vol. 63(2), pages 134-39, May.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.