Exploring Information Technology and Supply Chain Governance

Abstract

The aim of this study is to investigate how information technology (IT) investment supports and relates to SCG and its conceptions (transactional and relational. The authors conducted exploratory case studies in two large Brazilian companies and two major suppliers, interviewing top supply chain executives. In the first case, they identified a more relational type of governance that was mainly based on the company's relationship with its suppliers which was driven by the desire to achieve a greater market share. IT investments focused on sales and operations planning projects where all systems were being integrated. In the second case, they identified transactional governance as the predominant form. This reflects the presence of a great number of suppliers, low partnership and low supply on time delivery rate. IT investments are being made to achieve more relational governance through expenditure on e-procurement and greater integration with their suppliers using ERP.