Determinants in Supply Chain Application Integration Strategy: Case-Based Comparison Study
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Since early 90’s, many leading companies implemented enterprise resource planning (ERP) system in order to enhance their competitive advantage. In its early stage of ERP adoption, called core ERP, the focus was on integrating a firm’s internal processes; so that, increasing its internal efficiency. More recently, firms began to expand their system across their supply chain in order to enhance the supply chain capability by implementing inter-firm system integration. Previous research suggested two alternative approaches for the inter-firm integration: EDI and web-based integration. While many works mentioned pros and cons for the two alternatives, few of them explicitly identified determinants those influence the choice between the alternatives. In this study, we proposed four sets of determinants: downstream relationship, transaction characteristics, target process, contents characteristics and IT infrastructure. We selected two companies and tested the proposed framework and reported the results.
KeywordsSupply chain management Inter-firm IT Integration EDI Web-based integration
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