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Connective Technology Adoption in the Supply Chain: The Role of Organizational, Interorganizational and Technology-Related Factors.

Description: Supply chain management (SCM) is an area that offers organizations significant opportunities for both cost reductions and revenue enhancement. In their article, "Supply Chain Management: Implementation Issues and Research Opportunities," Lambert, Cooper and Pagh defined SCM as the "integration of key business processes from end user through original suppliers that provides products, services, and information that add value for customers and other stakeholders." Adopting and implementing appropriate technology has emerged as a source of competitive advantage for supply chain member firms through the integration of business processes with suppliers and customers. It is important to understand the factors influencing an organization's decision to acquire such technology. In the context of this study, connective technologies are defined as wireless communication devices and their accompanying infrastructure and software which may enhance coordination among supply chain partners. Building on previous literature in the areas of supply chain management, marketing strategy, and organizational innovation, a model was developed to test the relationships between organizational, interorganizational, and technology-related factors and the adoption of advanced connective technology, using radio frequency identification (RFID) as the test case, in the supply chain. A Web-based survey of supply chain professionals was conducted resulting in 224 usable responses. The overall model was statistically significant with four of the predictors significantly influencing the adoption of RFID in the supply chain. Size, centralization, new product advantage and time to achieve targeted ROI were significantly related to adoption of connective technology (RFID). Interorganizational related factors were not significant predictors of connective technology adoption. The study contributes to theory by testing scales from marketing and management in a supply chain context in order to better understand behavioral dimensions of supply chain management and logistics. The conceptualization and measurement of market orientation at the interfirm level advances the market orientation literature. Finally, the study contributes ...
Date: May 2006
Creator: Neeley, Concha Kaye Ramsey