Developing SCM framework associated with IT-enabled SC network capabilities

Abstract

Purpose The purpose of this paper is to conceptualize how information technology (IT) enables supply chain (SC) network capabilities, which is to capitalize on SC’s existing set of resources and, at the same time, manage new combinations of SC resources to meet future market needs. The paper also develops SCM framework associated with IT-enabled SC network capabilities. Design/methodology/approach Through a case study of a leading Taiwanese petrochemical corporation, qualitative data were gathered on the IT-related SC management practices, in terms of network resource mobilizing and adaptive co-management arrangements to enable SC network capability. This research is based primarily on the interviews of the case company, supplemented by archived documents, published books, and in-depth observations. Findings Based on the evidence from the case, this study inductively develops a model that includes the operating processes with IT-enabled activities to achieve ambidextrous SC network capability, and the relevant framework functions in network resources and co-management activities include information co-governance, information interoperability, community engagement strategy, cyber-physical dexterity, and control enactment, which lead the SC alliances improvements for dynamic environmental changes. Practical implications Practitioners may derive strategies and tactics from the current findings to help them implement innovative information technologies and setup SC framework, during SC network capability development, to achieve SC’s sustainable competence in a dynamic market. Originality/value Researchers and practitioners may obtain a more complete view of IT-enabled SC network capability development. The proposed model reveals that developing IT-enabled SC network capabilities is a dynamic process whereby an organization’s major SC managerial activities are divided into specific network resource mobilizing and adaptive co-management arrangements.