Drivers of information technology use in the supply chain
| DOI | https://doi.org/10.1108/13287261011032661 |
| Date | 02 February 2010 |
| Published date | 02 February 2010 |
| Pages | 70-84 |
| Author | Tanmoy Nath,Craig Standing |
| Subject Matter | Information & knowledge management |
JSIT
12,1
70
Journal of Systems and Information
Technology
Vol. 12 No. 1, 2010
pp. 70-84
#Emerald Group Publishing Limited
1328-7265
DOI 10.1108/13287261011032661
Drivers of information technology
use in the supply chain
Tanmoy Nath
Graduate School of Business, Curtin University, Bentley, Australia, and
Craig Standing
School of Management, Edith Cowan University, Joondalup, Australia
Abstract
Purpose – The purpose of this paper is to identify the drivers of information technology (IT) use in
the supply chain. Given that the use of IT in the supply chain has been a popular topic of research it
is timely to analyse the literature to identify patterns and key factors for success.
Design/methodology/approach – A grounded theory approach is used to build a conceptual
model using peer-reviewed journal articles. The selection criteria are derived from the literature
review and these are used to extract suitable articles from the online databases. The term ‘‘supply
chain’’ is used with all the selection key words to make the search more specific and relevant to the
expected search outcome.
Findings – The drivers of IT use in the supply chain are related to three levels of complexity and
organisational change. The first level (low) involves a less complex use of IT that is driven through
a desire to reduce costs. The drivers are cost reduction, reduced lead and cycle times, increased
operational capability and information quality improvement. The second level (medium) involves a
medium level of complexity that is characterised by networking and collaboration. The drivers are
better relationships and information accessibility. Level two requires the drivers for level one. The
most complex level is aimed at organisational transformation. The drivers are market sharing
expansion, risk sharing and reduction, high quality service and better decision making. Level three
also requires the drivers for levels one and two.
Research limitations/implications – The study identified that many organisations use IT in the
supply chain (SC) without understanding the drivers of IT use and this impacted on their success. In
addition, it found that drivers can be classified into a hierarchy of benefits.
Practical implications – A lack of understanding of the drivers of IT use in the SC can be
overcome by using the list of specific drivers and how these relate to organisational change. The
manager’s increased understanding of these factors should improve the success rate of IT investment
in the SC by being more aware of how requirements relate to benefits and improvement.
Originality/value – The study is the first of its kind to analyse a large number of research articles
to determine the drivers of IT use in the supply chain.
Keywords Supply chain management, Communication technologies, Strategic planning
Paper type Research paper
Introduction
Supply Chain Management (SCM) is a complex and important issue for organisations.
Fierce competition in the global marketplace and high expectations of customers has
lead companies to invest huge sums of m oney in its management. The key to its success
mostly lies in the effective use of information technology (IT) (Tummala et al.,2006).The
management of the supply chain (SC) now is not limited only to production and delivery.
Rather, by using IT, success depends on how effectively companies can manage logistic
networks, systems integration, supplier integration, global optimisation, bullwhip effect,
outsourcing, partnership and alliance, warehouse management, inventory management,
and the virtualSC (Tan et al., 2002).
Organisational gains from using IT in the supply chain are not automatic. Some
organisations are obtaining significant benefits from using IT in the SC while others
are struggling to obtain reasonable returns from their investment (Kuk, 2004; Standing
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