Electronic commerce applications for supply chain integration and competitive capabilities

Abstract

PurposeThe purpose of this paper is to empirically examine the impacts of supplier‐ and customer‐oriented electronic communication technologies (ECTs) (electronic data interchange (EDI) and internet‐based) on supply chain integration and manufacturing competitive capabilities (flexibility and quality).Design/methodology/approachThe research model is based on resource‐based view of technology use, ECTs, and supply chain management literature. Data from 711 international manufacturing firms International Manufacturing Strategy Survey (IMSS IV) are analyzed using exploratory factor analysis and structural equation modeling to test the proposed relationships.FindingsThe results suggest: the importance of applying two specific ECTs (EDI and internet‐based) for both supplier and customer integration; and the direct impact of supplier integration and customer integration on manufacturing competitive capabilities.Research limitations/implicationsExcept for perceptual biases inherent to survey methodology, this research provides rich implications on ECTs (particularly, EDI and internet‐based) on supply chain integration and manufacturing competitive capabilities.Practical implicationsThe findings of this research provide practical management insights on ECTs investment and deployment practices. Creation and delivery of values require effective integration of technologies for key performance outcomes across suppliers, customers and internal business processes.Originality/valueThis paper fills the research gap by presenting a research model and empirically validates how ECTs impact on quality and flexibility based on rich empirical data of 711 firms of manufacturing firms.