Title: The impact of e-procurement on the supply chain structure

Authors: Danny C.K. Ho, K.F. Au, Edward Newton

Addresses: Institute of Textiles and Clothing, The Hong Kong Polytechnic University, Hung Hom, Kowloon, Hong Kong. ' Institute of Textiles and Clothing, The Hong Kong Polytechnic University, Hung Hom, Kowloon, Hong Kong. ' Institute of Textiles and Clothing, The Hong Kong Polytechnic University, Hung Hom, Kowloon, Hong Kong

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.

Keywords: electronic markets; electronic hierarchies; supply chain structure; resources; competitive advantage; e-procurement.

DOI: 10.1504/IJEB.2003.004111

International Journal of Electronic Business, 2003 Vol.1 No.4, pp.383 - 395

Published online: 30 Mar 2004 *

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