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Effectiveness of Inter-Organizational Systems in Global Manufacturing: Evidence from Industrial Cases in Taiwan

Effectiveness of Inter-Organizational Systems in Global Manufacturing: Evidence from Industrial Cases in Taiwan

Jun-Der Leu, Yu-Tsung Huang, Li-Ting Huang
Copyright: © 2011 |Volume: 2 |Issue: 1 |Pages: 16
ISSN: 1947-8569|EISSN: 1947-8577|EISBN13: 9781613509234|DOI: 10.4018/jsds.2011010102
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MLA

Leu, Jun-Der, et al. "Effectiveness of Inter-Organizational Systems in Global Manufacturing: Evidence from Industrial Cases in Taiwan." IJSDS vol.2, no.1 2011: pp.28-43. http://doi.org/10.4018/jsds.2011010102

APA

Leu, J., Huang, Y., & Huang, L. (2011). Effectiveness of Inter-Organizational Systems in Global Manufacturing: Evidence from Industrial Cases in Taiwan. International Journal of Strategic Decision Sciences (IJSDS), 2(1), 28-43. http://doi.org/10.4018/jsds.2011010102

Chicago

Leu, Jun-Der, Yu-Tsung Huang, and Li-Ting Huang. "Effectiveness of Inter-Organizational Systems in Global Manufacturing: Evidence from Industrial Cases in Taiwan," International Journal of Strategic Decision Sciences (IJSDS) 2, no.1: 28-43. http://doi.org/10.4018/jsds.2011010102

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Abstract

Enterprise Information Systems, such as Enterprise Resource Planning (ERP) systems, have been applied to integrate business processes within a global manufacturing enterprise. Recently, the inter-organizational systems are applied to assist in business data sharing and collaboration among enterprises based on the ERP application. However, their resource requirements and failure rates are high, and many enterprises are concerned about the Business-to-Business (B2B) effectiveness. In this research, the authors study global manufacturing enterprises, which developed their B2B systems with Taiwanese government sponsorship successfully. B2B effectiveness is evaluated through operational efficiency and profitability, while the business scale, Electronic Data Interchange (EDI) induced supplier numbers, and application scope are considered influencing factors. After the evidence of multiple regression models and non-parametric statistic testing, the results show that only the application scope has a significant impact on profitability. The authors discuss these results from the perspective of enterprise integration as well as the system application scope and give suggestions to global manufacturing enterprises that want to apply inter-organizational systems.

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