The unavoidable consequence of multiple IS integration: the cascading negative effects in supply chain information systems

Companies strive to integrate information systems (IS) across organizations to support coordination and collaboration processes aimed at improving supply chain performance. While achieving full internal IS integration may be challenging, it is no longer considered a myth. However, given the complex and dynamic nature of supply chains, full external integration with business partners may not be feasible and often remains partial. Failure to fully integrate interorganizational information systems (IOS) across the supply chain can have unanticipated negative effects on performance. These effects can affect the quality and availability of data within the IS, ultimately reducing access to and control over the information needed to manage the supply chain. In addition, negative effects observed in one organization can cascade to other organizations within the supply chain that share the same IS. Detecting and identifying these effects in an inter-organizational context is essential to develop a comprehensive and transversal understanding of disruptions in order to anticipate and mitigate cascading effects. Our methodology is based on fifteen mini-cases embedded in three supply chain case studies in different industries. The results identify twelve negative effects of integrated IS, four of which are specific to the use of an IOS. The findings also clarify the different types of integration in an interorganizational context, such as multiple full external integration, which can trigger negative effects due to the multiplicity of applications. Finally, we theorize the cascading negative effects in a complex inter-organizational context.