• Title/Summary/Keyword: Inter-Organizational Trust

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A Study on the Success Factors of Partnership in SCM (SCM에서 파트너십의 성공결정요인에 관한 연구)

  • So, Soon-Hoo;Ryu, Il
    • The Journal of Society for e-Business Studies
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    • v.9 no.3
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    • pp.1-16
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    • 2004
  • The purpose of this study is to explore the nature of supply chain partnership, and to find the factors influencing the supply chain partnership success. For this, relationship commitment and trust were used as the basic components of the supply chain partnership. Also we identified strategic fit, interdependence, compatibility, and communication as determinants of supply chain partnership. Based on the statistical analysis of the sample of Korean corporations, it was found that relationship commitment and trust were shown to be significant factors influencing the supply chain partnership success. In addition, the findings reveal that strategic fit, interdependence, compatibility, and communication will facilitate supply chain partnership. More specifically, strategic fit and interdependence have a significant positive influence on relationship commitment. Also, compatibility and communication have a significant positive influence on trust. There result, in short, supported the importance of supply chain partnership for the successful SCM.

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A Total Analysis of Study on Factor Affecting the Usage Level and Performance of e-trade (전자무역의 활용수준과 성과 영향 요인에 관한 연구의 종합 분석)

  • Lee, Yong-Keun;Kim, Seung-Chul;Jung, Jae-Woo
    • International Commerce and Information Review
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    • v.6 no.1
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    • pp.99-126
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    • 2004
  • E-Trade is expected to dominate the global trade in the 21st century and thus is being introduced as a major policy assignment for each development country. e-trade has the potential to accelerate existing trends and introduce new ways of conducting trade. and e-trade is an alternative to strengthen international competitiveness. therefore, we needs to quickly adjust to this new method of e-trade and provide a number of policy suggestions that it can make best use of. However, successful implemetation, diffusion and usage of e-trade system require cooperation, commitment and the trust of all participating members in international trade process. A number of interorganizational, intraorganizational and innovation factors can influence both the extent to which e-trade is diffused and the level of subsequent performance that accure to participating firms. Considering the characteristics of e-trade, the proposed factors are based on an interdisciplinary study. The research model is based on the theories of innovation diffusion, inter-organizational system, and IS implementation. The factors proposed for this study of external firm factors, internal firm and perception factors.

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An Empirical Study on the Determinants of Supply Chain Management Systems Success from Vendor's Perspective (참여자관점에서 공급사슬관리 시스템의 성공에 영향을 미치는 요인에 관한 실증연구)

  • Kang, Sung-Bae;Moon, Tae-Soo;Chung, Yoon
    • Asia pacific journal of information systems
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    • v.20 no.3
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    • pp.139-166
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    • 2010
  • The supply chain management (SCM) systems have emerged as strong managerial tools for manufacturing firms in enhancing competitive strength. Despite of large investments in the SCM systems, many companies are not fully realizing the promised benefits from the systems. A review of literature on adoption, implementation and success factor of IOS (inter-organization systems), EDI (electronic data interchange) systems, shows that this issue has been examined from multiple theoretic perspectives. And many researchers have attempted to identify the factors which influence the success of system implementation. However, the existing studies have two drawbacks in revealing the determinants of systems implementation success. First, previous researches raise questions as to the appropriateness of research subjects selected. Most SCM systems are operating in the form of private industrial networks, where the participants of the systems consist of two distinct groups: focus companies and vendors. The focus companies are the primary actors in developing and operating the systems, while vendors are passive participants which are connected to the system in order to supply raw materials and parts to the focus companies. Under the circumstance, there are three ways in selecting the research subjects; focus companies only, vendors only, or two parties grouped together. It is hard to find researches that use the focus companies exclusively as the subjects probably due to the insufficient sample size for statistic analysis. Most researches have been conducted using the data collected from both groups. We argue that the SCM success factors cannot be correctly indentified in this case. The focus companies and the vendors are in different positions in many areas regarding the system implementation: firm size, managerial resources, bargaining power, organizational maturity, and etc. There are no obvious reasons to believe that the success factors of the two groups are identical. Grouping the two groups also raises questions on measuring the system success. The benefits from utilizing the systems may not be commonly distributed to the two groups. One group's benefits might be realized at the expenses of the other group considering the situation where vendors participating in SCM systems are under continuous pressures from the focus companies with respect to prices, quality, and delivery time. Therefore, by combining the system outcomes of both groups we cannot measure the system benefits obtained by each group correctly. Second, the measures of system success adopted in the previous researches have shortcoming in measuring the SCM success. User satisfaction, system utilization, and user attitudes toward the systems are most commonly used success measures in the existing studies. These measures have been developed as proxy variables in the studies of decision support systems (DSS) where the contribution of the systems to the organization performance is very difficult to measure. Unlike the DSS, the SCM systems have more specific goals, such as cost saving, inventory reduction, quality improvement, rapid time, and higher customer service. We maintain that more specific measures can be developed instead of proxy variables in order to measure the system benefits correctly. The purpose of this study is to find the determinants of SCM systems success in the perspective of vendor companies. In developing the research model, we have focused on selecting the success factors appropriate for the vendors through reviewing past researches and on developing more accurate success measures. The variables can be classified into following: technological, organizational, and environmental factors on the basis of TOE (Technology-Organization-Environment) framework. The model consists of three independent variables (competition intensity, top management support, and information system maturity), one mediating variable (collaboration), one moderating variable (government support), and a dependent variable (system success). The systems success measures have been developed to reflect the operational benefits of the SCM systems; improvement in planning and analysis capabilities, faster throughput, cost reduction, task integration, and improved product and customer service. The model has been validated using the survey data collected from 122 vendors participating in the SCM systems in Korea. To test for mediation, one should estimate the hierarchical regression analysis on the collaboration. And moderating effect analysis should estimate the moderated multiple regression, examines the effect of the government support. The result shows that information system maturity and top management support are the most important determinants of SCM system success. Supply chain technologies that standardize data formats and enhance information sharing may be adopted by supply chain leader organization because of the influence of focal company in the private industrial networks in order to streamline transactions and improve inter-organization communication. Specially, the need to develop and sustain an information system maturity will provide the focus and purpose to successfully overcome information system obstacles and resistance to innovation diffusion within the supply chain network organization. The support of top management will help focus efforts toward the realization of inter-organizational benefits and lend credibility to functional managers responsible for its implementation. The active involvement, vision, and direction of high level executives provide the impetus needed to sustain the implementation of SCM. The quality of collaboration relationships also is positively related to outcome variable. Collaboration variable is found to have a mediation effect between on influencing factors and implementation success. Higher levels of inter-organizational collaboration behaviors such as shared planning and flexibility in coordinating activities were found to be strongly linked to the vendors trust in the supply chain network. Government support moderates the effect of the IS maturity, competitive intensity, top management support on collaboration and implementation success of SCM. In general, the vendor companies face substantially greater risks in SCM implementation than the larger companies do because of severe constraints on financial and human resources and limited education on SCM systems. Besides resources, Vendors generally lack computer experience and do not have sufficient internal SCM expertise. For these reasons, government supports may establish requirements for firms doing business with the government or provide incentives to adopt, implementation SCM or practices. Government support provides significant improvements in implementation success of SCM when IS maturity, competitive intensity, top management support and collaboration are low. The environmental characteristic of competition intensity has no direct effect on vendor perspective of SCM system success. But, vendors facing above average competition intensity will have a greater need for changing technology. This suggests that companies trying to implement SCM systems should set up compatible supply chain networks and a high-quality collaboration relationship for implementation and performance.

A Study of Suppliers' Participation in Private Exchanges: Focusing on MRO Markets (MRO 시장에서의 공급자의 전용마켓 참여에 관한 연구)

  • Lim, Seong-bae;Kim, Sung-Kwan;Mitchell, Robert B.;Hong, Soon-Goo
    • The Journal of Society for e-Business Studies
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    • v.9 no.4
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    • pp.37-51
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    • 2004
  • Many B2B electronic markets (EMs) are struggling to survive because they failed to attract enough participants. Thus reaching critical mass of participants is one of the key success factors for various types of EMs. The main purpose of this study is to investigate factors that lead MRO (maintenance, repair, and operating) suppliers to participate in private exchanges (PE), the buy-side EM. This paper introduces the characteristics of the PE according to the classification schemes introduced in previous studies about EM types. Literature is reviewed on suppliers' adoption of inter-organizational information systems focusing on EDI adoptions issues. Data analysis based on incomplete contract theory and the social exchange theory is then presented. The results of this study show that the number of suppliers and subsidy are factors that influence suppliers' participation in PEs. Nonsignificant results relating to trust imply that suppliers who are invited to participate in a PE do not expect their off-line relationships with the buyer to be transferred to the PE.

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Searching for the SCM Improvement Directions through the Power Attribute and Partnership (파워 유형과 파트너십 연계를 통한 공급사슬관리 개선방안 모색)

  • Jung, Dae-Hyun;Park, Kwang-O
    • Management & Information Systems Review
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    • v.35 no.3
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    • pp.57-79
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    • 2016
  • It is required to derive various conclusions by identifying the type of power and the relationship between SCMs and presenting practical implications. Thus, we can identify the differential effects of each type of power on SCM performance. We can contribute to develop the practical implications at more sophisticated multi-dimension by comparing results of this study with various SCM theories. Through previous studies, the source of power is largely divided into binding power and non-binding power. Binding power is classified into behavior coercion, binding reward and relationship legitimacy. Non-binding power is classified into work expertise, information superiority and value compliance. Enterprises should fully understand and recognize partners within supply chains including understanding of the source of power, imbalance and results. Thus, we look into types of power and effects on trust and commitment, and identify a causal relationship leading to collaboration and SCM performance. Specific research results are as follows. First, the binding power did not give a significant effect to the trust. However, the binding power gave a positively(+) significant effect to the commitment. Second, non-binding power showed a significant effect on both trust and commitment. As a result of analysis on total effects, it was shown that non-binding power gave indirect effects to collaboration and SCM performance. Third, it was shown that both trust and commitment significantly affected collaboration. From the perspectives of social exchange theory and trading cost theory among inter-organizational relationship theory, it may lead to SCM performance of trust, commitment and collaboration. Moreover, it was found that association of each attribute of power led to the significant result. Fourth, it was shown that trust and collaboration significantly affected SCM performance. However, commitment did not directly affect SCM performance, but it indirectly significantly affected SCM performance through collaboration. Proper use of this power can firmly build partnerships between members of the supply chain and induce the improvement on supply chain performance and satisfaction of members.

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