The impact of e-procurement on the supply chain structure
by Danny C.K. Ho, K.F. Au, Edward Newton
International Journal of Electronic Business (IJEB), Vol. 1, No. 4, 2003

Abstract: The recent advancement and deployment of information and communication technologies have created significant changes to not only the way individual businesses operate, but also the way they relate to each other. To provide a better understanding of how the internal structure and coordination mechanisms of supply chains transform through widespread e-procurement (i.e. procurement of industrial goods through exchanges in electronic markets), this paper applies a resource-based approach to examine the thesis that predicts a complete disintegration of supply chains and the dominance of electronic markets. The analysis indicates that the co-existence of electronic markets and electronic hierarchies appears to better reflect the structural transformation of supply chains, and that a strategic fit is achieved when electronic markets and electronic hierarchies are deployed for accessing commodity resources and strategic resources, respectively.

Online publication date: Mon, 10-May-2004

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