Supply chain uncertainties linked to information systems: a case study approach
| Date | 10 July 2017 |
| Pages | 1093-1108 |
| Published date | 10 July 2017 |
| DOI | https://doi.org/10.1108/IMDS-07-2016-0264 |
| Author | Salomée Ruel,Lhoussaine Ouabouch,Sabry Shaaban |
| Subject Matter | Information & knowledge management,Information systems,Data management systems,Knowledge management,Knowledge sharing,Management science & operations,Supply chain management,Supply chain information systems,Logistics,Quality management/systems |
Supply chain uncertainties linked
to information systems: a case
study approach
Salomée Ruel
Department of Strategy, Groupe Sup de Co La Rochelle,
La Rochelle, France and
Centre études et de recherches appliquées à la gestion, Grenoble, France
Lhoussaine Ouabouch
Universite Ibn Zohr, Agadir, Morocco, and
Sabry Shaaban
Department of Strategy, Strategy and Organization, Groupe ESC La Rochelle,
Cerege, La Rochelle, France
Abstract
Purpose –The purpose of this paper is to study the following research question: how can information
systems (ISs) be the real sources of uncertainty for supply chain management (SCM), despite their positive
roles in the effectiveness of modern supply chain (SC) organization?
Design/methodology/approach –A typologyof the uncertaintieslinked to ISs and their usageis developed.
Then, five explanatorycase studies conducted in diverse industries allow to characterizethis typology.
Findings –The case studies allow to identify the most frequently recurring uncertainties, namely, “limitedIS
capacity”and “data unreliability.”In addition, “company size”does not seem to be a relevant dimension for
assessing the vulnerability of a SC to uncertainties linked to ISs. On the other hand, the “business sector,”
with its implied power influences, was found to be a relevant dimension.
Research limitations/implications –This research does not allow to rank uncertainties according to their
level of criticality.
Practical implications –This paper enables SC and information systems managers, as well as ISs/SC
project managers to be aware of the need to consider ISs not only as the vectors for performance, but also as
the factors for uncertainty in SCs.
Originality/value –ISs are generally considered to be a vector of performance. Nevertheless, their use
remains problematic in many companies. This paper falls within both the ISs and SCM research areas. In the
latter field, typologies of the uncertainties are common, but often ignore the uncertainties linked to ISs and
their usage. The authors suggest envisaging ISs as the potential factors for uncertainty in the context of SCM.
Keywords Supply chain management, Uncertainty, Typology, Information systems, Case studies
Paper type Research paper
1. Introduction
The research into risk management is not new (Bernstein, 1996) and is still on the agenda for
many research fields, such as information system (IS) management and supply chain
management (SCM). Risks and uncertainties exist during investment, the launch of a new
product, the implementation of a new IS and in the management of a global supply chain
(SC). Our study positions itself at the intersection of research into SCM and the management
of IS. These two research fields share the need to manage information flows in an intra- and
inter-organizational manner.
Although the coupling of physical and information flows is obvious and well-known in
SCM (Fabbe-Costes and Jahre, 2008), the role of IS was, for a while, only envisaged as a
means of solving problems and leading to the lowering of SC risk and uncertainty.
For example, recent research on SCM shows the contribution of IS to SC resilience
(Evrard Samuel and Ruel, 2013). We also observe that the uncertainties linked to IS are
Industrial Management & Data
Systems
Vol. 117 No. 6, 2017
pp. 1093-1108
© Emerald PublishingLimited
0263-5577
DOI 10.1108/IMDS-07-2016-0264
Received 6 July 2016
Revised 26 September 2016
Accepted 30 October 2016
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/0263-5577.htm
1093
SC
uncertainties
linked to ISs
absent from the various typologies of SC risks and uncertainties (see e.g. Harland et al., 2003;
Chopra and Sodhi, 2004; Christopher and Peck, 2004; Rao and Goldsby, 2009). On the other
hand, ISs are described as tools allowing improvement of the three pillars of “information,
communication, collaboration”(Spalanzani and Evrard Samuel, 2007), which enables us to
limit SC uncertainties. SCM practitioners also seem to look favorably at IS to improve SC.
However, in a study conducted by the Economist Intelligence Unit (2009), it was found that
many companies think they lack transparency in their SCs and face difficulties in managing
SC risks and uncertainties. This lack of transparency could be addressed by investments
and improvements in IS and in the way the IS is used within the SC.
In order to study the links between SC uncertainties and IS, the paper is structured as
follows: after a review of the relevant literature, the motivation and objectives of the study
are presented. Subsequent sections discuss the methodology based on five case studies
conducted in the SCM departments of various companies, and provide the case study
descriptions and analysis. Finally, we present and discuss our results.
2. Literature review
2.1 Risks and uncertainties in SCM
Just as with uncertainty, the topic of SC risks has been a common focus of research for over
ten years. At times of crisis and with various new trends (outsourcing, low-cost country
sourcing and lean manufacturing), SC risks are increased (Peck, 2005). The uncertain
environment of SCsexplains why uncertainty management is a frequentlydiscussed topic of
research (Prater et al., 2001; Lee, 2002). In 2008, Manuj and Mentzer link the concepts of risk
and uncertainty to the realm of SCM where a risk is the possible consequence of an
uncertainty.If the uncertainty is of an informationalnature (Van der Vorst and Beulens, 2002),
its possible impacts are physical and known as “risks.”Risk is associated with a certain
probability of occurrence and characterized by its severity as well as its direct and indirect
effects (Kleindorfer and Saad, 2005).
SCM researchers have attempted to create risk and uncertainty typologies, some of
which are exhaustive and others, by contrast, are as simple as practically possible in the
business world. When studying these typologies, it seems at first that most of the typologies
are interested in risks rather than in both risk and uncertainty factors. Indeed, as observed
by Tang and Nurmaya Musa (2011) and Sodhi et al. (2012), few studies really focus on the
causes of the risks; most mention the sources without discussing the causes. Furthermore,
although the link between physical and information flows in SCM is indisputable, we notice
that the risks discussed are almost all related to the physical flow. Some researchers focus
on the search for information risks (Rao and Goldsby, 2009), control risks (Christopher and
Peck, 2004) or statutory risks (Harland et al., 2003). Only Chopra and Sodhi (2004) are more
clearly concerned with uncertainties linked to the management of information flows via
“systems.”Chopra and Sodhi (2004, p. 56) explain that “the more a company networks its
information systems, the greater the threat that a failure anywhere can cause failure
everywhere. Although rare, a breakdown of information infrastructure can devastate
today’s highly networked environments.”It is surprising that so central an element as ISs in
SCM has been studied so little in the context of the uncertainties which they can bring.
Lavastre et al. (2014) cite ISs as a potential risk for SCs, but point to collaborative ISs as a
tool to counter SC risks. Thus, when studying the subject of ISs, there is an apparent
ambivalence with regard to SC risks and uncertainties.
2.2 ISs in the face of SC uncertainties
ISs play a key role in SCM. In a context of high uncertainty, they allow information to be
analyzed quickly and collectively in order to facilitate the best decisions. DeGroote and
Marx (2013) find that ISs improve an SC’s ability to sense market changes by improving the
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