SCM system effects on performance for interaction between suppliers and buyers

Abstract

PurposeThe purpose of this paper is to examine the impacts of supply chain management (SCM) benefits on the interactive performance between supply chain members.Design/methodology/approachThe contingency theory and socio‐technical theory were applied in the construction of the research model. Four constructs were adopted for the development of the research model: contingency factors, interaction process, interactive performance, and SCM system benefits.FindingsTo respond to the challenges in global markets, an increasing number of enterprises strive for better profits by working closely with suppliers. As the interaction increases, the buyer‐seller relationship changes accordingly.Research limitations/implicationsEmpirical studies require further analysis and suggestions were also made for further explication.Practical implicationsThe interaction between the manufacturing and marketing departments is a determinant for the firm's competitive advantages.Originality/valueInterviews with six case firms in the information/electronic industry show that external and internal factors affect the interaction between supply chain members and result performance improvement.