Leveraging Standard Electronic Business Interfaces to

supply chain management

Information Systems Research

Vol.18,No.3,September2007,pp.260–279issn1047-7047 eissn1526-5536 07 1803 0260inf®doi10.1287/isre.1070.0132©2007INFORMSLeveragingStandardElectronicBusinessInterfacestoEnableAdaptiveSupplyChainPartnerships

Kenan-FlaglerBusinessSchool,UniversityofNorthCarolinaatChapelHill,ChapelHill,NorthCarolina27499,arvind_malhotra@kenan- agler.unc.edu

CapitalGroupCompanies,Inc.,135S.StateCollegeBoulevard,Brea,California92821,gosain@

MarshallSchoolofBusiness,UniversityofSouthernCalifornia,LosAngeles,California90089,elsawy@c.eduArvindMalhotraSanjayGosainOmarA.ElSawy

Adaptivesupplychainpartnershipsareakeyfactorindrivingtheabilityofextendedenterprisepartnerstoachievelong-termgoalsinanenvironmentcharacterizedbydisruptiveenvironmentalshifts.Adaptiveextendedenterprisearrangementsallowparticipatingenterprisestoleveragetheircombinedassetsforcollectiveexplorationandexploitation.Inthecontextofextendedenterprises,wheresigni cantinvestmentshavebeendirectedtowardinstitutingcommoninterfaces,thisstudyexaminesthequestion:Howdoestheuseofstandardelectronicbusinessinterfaces SEBIs enablesupplychainpartnershipstobecomemoreadaptive?ThisstudyconceptualizestheuseofSEBIsasaboundary-spanningmechanismthathelpsovercomebound-ariesthatimpedeknowledgetransferbetweenenterprisesinsupplychains.SEBIsenablespartnerstogaininsightintotheirbroaderenvironments,enrichingeachpartner’sperspective(enhancedbridging).SEBIsalsohelpstrengthenthecooperativetiesbetweenpartners,motivatingeachpartnertoadaptforcollectivegain(enhancedbonding).Ourresearchmodelisempiricallytestedusingdatacollectedfrom41demand-sidesupplychainpartnerships(betweenoriginalequipmentmanufacturers(OEMs),distributors,andretailers)intheinformationtechnology(IT)industry.Theresultsshowthatcollaborativeinformationexchange(CIE)betweensupplychainpartnersmediatestherelationshipbetweenuseofSEBIsandmutualadaptation(MA)andadaptiveknowledgecreationbetweensupplychainpartners.Interestingly,theuseofSEBIsisfoundtobedirectlyassociatedwithMAbutonlyindirectlyassociatedwithadaptiveknowledgecreation.ThestudypointsoutthatthestrategicimpactsofSEBIsgowellbeyondtheexchangeoftransactioninforma-tionandprocessintegration.Italsoshowsthatmultilateral,quasi-open,andinformationexchange–andprocesslinkage–orientedSEBIscanresultinbothbondingandbridgingacrosssupplychainpartnerswithoutbindingthemin exiblytospeci cpartners.Basedonthemodelandresults,thestudyofferspracticalimplicationsforhowSEBIsshouldbedeveloped,adopted,andused.

Keywords:standardelectronicbusinessinterfaces;boundaryobjects;supplychainpartnering;adaptivepartnerships;adaptation;digitallyenabledextendedenterprise;bridging;bondingHistory:ArunRai,SeniorEditor.ThispaperwasreceivedonAugust15,2005,andwaswiththeauthors10monthsfor3revisions.

1.Today’shypercompetitiveenvironment,characterizedbychangingcustomerpreferences,shiftingindus-tryboundaries,andemergingglobalcompetition,requiresenterprisestobuildcapabilitiesforconstantinnovationandtorespondtocompetitivepressuresfromunforeseennewsources(D’Aveni1994,BrownandEisenhardt1997).Thishasbeenaccompaniedby

260Introductionanunbundlingofeconomicactivitydrivenbyfallingtransactioncosts,asinformationandcommunicationtechnologiesfacilitateconnectivityacrossenterprises(HagelandSinger1999).Unbundlingrequiresenter-prisestorelyonspecializedpartnersforcomple-mentaryactivities.Suchpartnerships,constitutingtheextendedenterprise,areasourceofrelationalrentsandcompetitiveadvantage(Dyer1996,1997;Dyerand

supply chain management

Malhotra,Gosain,andElSawy:LeveragingSEBIstoEnableAdaptiveSupplyChainPartnershipsInformationSystemsResearch18(3),pp.260–279,©2007INFORMSSingh1998).Thevaluecreationpotentialofextended

enterpriserelationshipscanbeleveragedtopursue

newopportunitiesandtobetteradapttomarket

changes(Young-YbarraandWiersema1999;Kopczak

andJohnson2003;Malhotraetal.2001,2005;ElSawy

etal.1999).

Insupplychains,interorganizationalrelationships

arecontinuallyrestructuredtopursuehigher-order

goals(beyondachievingtransactionalef ciencies),

suchasfastermarketentry,newmarketdevelopment,

andinterorganizationallearning,thatarethebasis

forlong-termviability(EisenhardtandSchoonhoven

1996,Gosainetal.2004).Akeyfactordrivingthe

abilityoftheextendedenterprisetoachievelong-

termgoalsinanenvironmentcharacterizedbydis-

ruptiveenvironmentalshiftsisadaptability(Rindova

andKotha2001).

Tosomeextent,anenterprisemayrelyonitsabil-

itytorecon gureinternalcompetencies.However,the

needforchangeinaneraofinterdependenceamong

enterprisesrequiresjointadaptationbyboththeenter-

priseanditspartners.Consider,forexample,theneed

foramanufacturertorefreshproductofferingsin

volatileenvironments.Thisrequiresintermeshednew

productintroductionprocessesthatspantheman-

ufacturer,wholesaledistributors,andretailers.Sup-

plychainpartnershipsalsoprovideopportunitiesfor

enterprisestolearnfromtheirpartnerstobetteradapt

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