| This research posits that information technology investment and deployment for efficient supply chain management should be implemented taking into consideration the interactive, feedback relationships among IT level, product customization level, buyer-supplier relationship, and supply chain structure.; Three kinds of feedback relationships are derived from prior literature. First is the mutual, positive feedback relationship among IT level, the number of suppliers, and buyer's bargaining power from the perspective of transaction cost theory. In other words, the continuous deployment of advanced IT ultimately can lead to perfect competition in an electronic market among a firm's suppliers by reducing transaction costs. As a result, such electronic market structure can enable further deployment of more advanced IT by the buyer. Second is a negative feedback relationship among IT level, the number of suppliers, and buyer's bargaining power from the perspective of “incomplete contract theory,” which leads to a different view. Succinctly, the continuous deployment of advanced IT cannot lead to persistent increase in the number of suppliers due to the increased burden for non-contractible investment by the buyer. Thus, his perspective suggests that the continuous improvement of IT level from declining transaction costs is not possible. Third is a negative feedback relationship among information sharing by advanced IT, product customization level, and supply chain dynamics.; Such negative feedback relationship suggests that information sharing by the utilization of advanced IT may not guarantee persistent cost reduction or profit increase throughout the supply chain, and that the effect of information-sharing can be different depending on the characteristics of SCM system including product customization level. The effect of IT investment in supply chain management can be different depending on the interaction among the three feedback relationships representing IT effect on buyer-supplier relationship and reflecting IT effect on supply chain dynamics. In other words, depending on how the described feedback relationships affect each other or which feedback relationship mostly dominates, the effect of IT investment can be different.; The objective of this dissertation is to identify the nature of these interactive feedback relationships among IT deployment, buyer-supplier relationship, and supply chain structure, and also to ascertain whether or not there exists a significant effect from product customization level on such interactive feedback relationships. Based on this identification through the utilization of the system dynamics methodology, one of the dynamic simulation methods, we can attempt to suggest a set of advisable SCM strategies for effective IT investment and deployment. Investigating the responses of IT level according to the dynamic changes of product customization level, buyer-supplier relationship, and supply chain structural issues is a requisite first step. This would be helpful in suggesting a dynamic E-technology investment and adoption model appropriate for integrated supply chain management. The insights developed in this dissertation should provide theoretical foundations and practical guidelines as to the role and function of B-to-B electronic commerce for efficient supply chain integration. |
