Skip to main content
Springer Nature Link
Log in

Distinct Impact of Information Access Patterns on Supplier’s Non-contractible Investments and Adaptation for Supply Chain Agility

  • Conference paper
Exploring the Grand Challenges for Next Generation E-Business (WEB 2009)

Part of the book series: Lecture Notes in Business Information Processing ((LNBIP,volume 52))

Included in the following conference series:

  • 1247 Accesses

Abstract

This study explores how distinct information access patterns affect a supplier’s supply chain agility. A supplier’s specific investments for IT-enabled supply chain coordination and relational adaptation in supply chain operations are identified as the technical and behavioral antecedents to its supply chain agility. Because both are non-contractible elements in formal contracts and complementary to buyer’s supply chain coordination information and buyer’s specific investments in monitoring and control, either buyer or supplier may hold up their counterpart based on their own information assets. Therefore, this study draws on the theory of incomplete contracts and suggests that both buyer and supplier need to make their idiosyncratic information assets alienable and accessible to their counterpart so that the rent-seeking problem can be alleviated and the supplier’s investment and adaptation incentives improved. This study contributes to the literature by demonstrating that distinct information access patterns can improve a supplier’s supply chain agility through the mediation of the non-contractible investments and adaptation made by the supplier.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution

Subscribe and save

Springer+ Basic
$34.99 /Month
  • Get 10 units per month
  • Download Article/Chapter or eBook
  • 1 Unit = 1 Article or 1 Chapter
  • Cancel anytime
Subscribe now

Buy Now

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Similar content being viewed by others

References

  1. Alchian, A.A., Demsetz, H.: Production, Information Costs, and Economic Organization. American Economic Review 62, 777–795 (1972)

    Google Scholar 

  2. Baker, G., Gibbons, R., Murphy, K.J.: Relational Contracts and the Theory of the Firm. The Quarterly Journal of Economics, 39–84 (2002)

    Google Scholar 

  3. Braunscheidel, M.J., Suresh, N.C.: The Organizational Antecedents of a Firm’s Supply Chain Agility for Risk Mitigation and Response. Journal of Operations Management 27, 119–140 (2009)

    Article  Google Scholar 

  4. Brynjolfsson, E.: Information Assets, Technology, and Organization. Management Science 40(12), 1645–1662 (1994)

    Article  Google Scholar 

  5. Bull, C.: The Existence of Self-Enforcing Implicit Contracts. Quarterly Journal of Economics CII, 147–159 (1987)

    Google Scholar 

  6. Cannon, J.P., Perreault Jr., W.D.: Buyer-Seller Relationships in Business Markets. Journal of Marketing Research 36(4), 439–460 (1999)

    Article  Google Scholar 

  7. Christopher, M.: The Agile Supply Chain: Competing in Volatile Markets. Industrial Marketing Management 29(1), 37–44 (2000)

    Article  Google Scholar 

  8. Dong, S., Xu, S.-X., Zhu, K.X.: Information Technology in Supply Chains: The Value of IT-enabled Resources under Competition. Information Systems Research 20(1), 18–32 (2009)

    Article  Google Scholar 

  9. Gibbons, R.: Four Formal(izable) Theories of the firm? Journal of Economic Behavior & Organization 58, 200–245 (2005)

    Article  Google Scholar 

  10. Gosain, S., Malhotra, A., El Sawy, O.A.: Coordinating for Flexibility in e-Business Supply Chains. Journal of Management Information Systems 21(3), 7–45 (2004-2005)

    Article  Google Scholar 

  11. Grossman, S., Hart, O.: The Costs and Benefits of Ownership: A Theory of Vertical and Lateral Integration. Journal of Political Economy 94, 691–719 (1986)

    Article  Google Scholar 

  12. Hart, O., Moore, J.: Property Rights and the Nature of the Firm. Journal of Political Economy 98, 1119–1158 (1990)

    Article  Google Scholar 

  13. Heide, J.B., Wathne, K.H., Rokkan, A.I.: Interfirm Monitoring, Social Contracts and Relationship Outcomes. Journal of Marketing Research XLIV, 425–433 (2007)

    Google Scholar 

  14. Jensen, M., Meckling, W.H.: Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure. Journal of Financial Economics 3, 305–360 (1976)

    Article  Google Scholar 

  15. Jones, C., Hesterly, W.S., Borgatti, S.P.: A General Theory of Network Governance: Exchange Conditions and Social Mechanisms. Academy of Management Review 22(4), 911–945 (1997)

    Google Scholar 

  16. Klein, B., Leffler, K.: The Role of Market Forces in Assuring Contractual Performance. Journal of Political Economy LXXXIX, 615–641 (1981)

    Google Scholar 

  17. Knoppen, D., Christiaanse, E.: Interorganizational Adaptation in Supply Chains: A Behavioral Perspective. International Journal of Logistics Management 18(2), 217–237 (2007)

    Article  Google Scholar 

  18. Lee, H.L., Padmanabhan, V., Whang, S.: Information Distortion in a Supply Chain: the Bullwhip Effect. Management Science 43, 546–558 (1997)

    Article  Google Scholar 

  19. Lee, H.L., So, K., Tang, C.: Supply Chain Re-engineering through Information Sharing and Replenishment Co-ordination. Working Paper, Department of Industrial Engineering, Stanford University (1996)

    Google Scholar 

  20. Lee, H.L., Whang, S.: Decentralized Multi-Echelon Supply Chains: Incentives and Information. Management Science 45(5), 633–640 (1999)

    Article  Google Scholar 

  21. Mukherji, A., Francis, J.D.: Mutual Adaptation in Buyer-Supplier Relationships. Journal of Business Research 61, 154–161 (2008)

    Article  Google Scholar 

  22. Overby, E., Bharadwaj, A., Sambamurthy, V.: Enterprise Agility and the Enabling Role of Information Technology. European Journal of Information Systems 15, 120–131 (2006)

    Article  Google Scholar 

  23. Rajan, R.G., Zingales, L.: Power in a Theory of the Firm. The Quarterly Journal of Economics 113(2), 387–432 (1998)

    Article  Google Scholar 

  24. Sambamurthy, V., Bharadwaj, A., Grover, V.: Shaping Agility through Digital Options: Reconceptualizing the Role of Information Technology in Contemporary Firms. MIS Quarterly 2(27), 237–263 (2003)

    Google Scholar 

  25. Simon, H.: A Formal Theory of the Employment Relationship. Econometrica 19, 293–305 (1951)

    Article  Google Scholar 

  26. Straub, D., Rai, A., Klein, R.: Measuring Firm Performance at the Network Level: A Nomology of the Business Impact of Digital Supply Networks. Journal of Management Information Systems 21(1), 83–114 (2004)

    Google Scholar 

  27. Subramani, M.: How Do Suppliers Benefit from Information Technology Use in Supply Chain Relationships? MIS Quarterly 28(1), 45–73 (2004)

    Google Scholar 

  28. Swafford, P.M., Ghosh, S., Murthy, N.: The Antecedents of Supply Chain Agility of a Firm: Scale Development and Model Testing. Journal of Operations Management 24, 170–188 (2006)

    Article  Google Scholar 

  29. Telser, L.: A Theory of Self-Enforcing Agreements. Journal of Business LIII, 27–44 (1981)

    Google Scholar 

  30. Williamson, O.: Markets and Hierarchies: Analysis and Antitrust Implications. Free Press, New York (1975)

    Google Scholar 

  31. Windsperger, J.: Allocation of Decision Rights in Joint Ventures. Managerial and Decision Economics 30(8), 491–501 (2009)

    Article  Google Scholar 

  32. Wong, C.W.Y., Lai, K., Nagi, E.W.T.: The Role of Supplier Operational Adaptation on the Performance of IT-enabled Transport Logistics under Environmental Uncertainty. International Journal of Production Economics 122(1), 47–55 (2009)

    Article  Google Scholar 

  33. Zhang, Q.U., Vonderembse, M.A., Lim, J.-S.: Value Chain Flexibility: A Dichotomy of Competence and Capability. International Journal of Production Research 40(3), 561–583 (2002)

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Management Information Systems, School of Management, National Chiayi University, 600, Chiayi City, Taiwan, R.O.C.

    Jeffrey C. F. Tai & Her-Sen Doong

  2. Department of Information Management, School of Management, National Central University, 320, Chung-Li, Taiwan, R.O.C.

    Eric T. G. Wang

  3. Department of Information Management, School of Management, National University of Kaohsiung, 811, Taiwan, R.O.C.

    Kai Wang

Authors
  1. Jeffrey C. F. Tai
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Eric T. G. Wang
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Her-Sen Doong
    View author publications

    You can also search for this author in PubMed Google Scholar

  4. Kai Wang
    View author publications

    You can also search for this author in PubMed Google Scholar

Editor information

Editors and Affiliations

  1. Department of Management Science and Systems, State University of New York at Buffalo, 14260, Buffalo, New York, NY, USA

    Raj Sharman

  2. Department of Management Science and Systems, State University of New York at Buffalo, School of Management, 14260, Buffalo, New York, NY, USA

    H. Raghav Rao

  3. Department of Information Systems, Arizona State University, 601G, 874606, Tempe, AZ, USA

    T. S. Raghu

Rights and permissions

Reprints and permissions

Copyright information

© 2010 Springer-Verlag Berlin Heidelberg

About this paper

Cite this paper

Tai, J.C.F., Wang, E.T.G., Doong, HS., Wang, K. (2010). Distinct Impact of Information Access Patterns on Supplier’s Non-contractible Investments and Adaptation for Supply Chain Agility. In: Sharman, R., Rao, H.R., Raghu, T.S. (eds) Exploring the Grand Challenges for Next Generation E-Business. WEB 2009. Lecture Notes in Business Information Processing, vol 52. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-17449-0_6

Download citation

  • DOI: https://doi.org/10.1007/978-3-642-17449-0_6

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-17448-3

  • Online ISBN: 978-3-642-17449-0

  • eBook Packages: Computer ScienceComputer Science (R0)

Publish with us

Policies and ethics