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Research Report. Can EDI Benefit Adopters?

Author

Listed:
  • Ho Geun Lee

    (Department of Business Administration, College of Business and Economics, Yonsei University, Seoul, Korea)

  • Theodore Clark

    (Department of Information and Systems Management, School of Business and Management, Hong Kong University of Science and Technology, Hong Kong, PRC)

  • Kar Yan Tam

    (Department of Information and Systems Management, School of Business and Management, Hong Kong University of Science and Technology, Hong Kong, PRC)

Abstract

Although the potential for EDI (Electronic Data Interchange) to improve performance of firms involved in industry value chain is widely known, little evidence regarding improved performance for the entire supply channel has been reported. Some researchers have found that EDI networks can benefit EDI champion, but it remains largely unclear whether EDI adopters—who are often coerced to implement the electronic networks by the champion—gain similar payoffs from their EDI investments. To measure impacts of EDI investments for the EDI adopters, we have investigated the performance of 31 grocery retail chains (EDI adopters) that implemented EDI networks with Campbell (EDI champion) for a supply channel reengineering innovation known as “continuous replenishment process.” Analysis of daily data on inventory and stockouts levels for the 31 retail chains demonstrates that these EDI adopters have achieved a significant increase in their inventory turns while simultaneously reducing stockouts as a result of this EDI-enabled supply channel reengineering. This paper thus provides empirical evidence that EDI adopters can achieve dramatic performance improvements if EDI networks are used for interfirm process reengineering.

Suggested Citation

  • Ho Geun Lee & Theodore Clark & Kar Yan Tam, 1999. "Research Report. Can EDI Benefit Adopters?," Information Systems Research, INFORMS, vol. 10(2), pages 186-195, June.
    • Handle: RePEc:inm:orisre:v:10:y:1999:i:2:p:186-195
    DOI: 10.1287/isre.10.2.186
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    Citations

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    Cited by:

    1. Anindya Ghose & Tridas Mukhopadhyay & Uday Rajan, 2007. "The Impact of Internet Referral Services on a Supply Chain," Information Systems Research, INFORMS, vol. 18(3), pages 300-319, September.
    2. Yao, Yuliang & Dong, Yan & Dresner, Martin, 2010. "Managing supply chain backorders under vendor managed inventory: An incentive approach and empirical analysis," European Journal of Operational Research, Elsevier, vol. 203(2), pages 350-359, June.
    3. Gautam Ray & Dazhong Wu & Prabhudev Konana, 2009. "Competitive Environment and the Relationship Between IT and Vertical Integration," Information Systems Research, INFORMS, vol. 20(4), pages 585-603, December.
    4. Arshinder & Kanda, Arun & Deshmukh, S.G., 2008. "Supply chain coordination: Perspectives, empirical studies and research directions," International Journal of Production Economics, Elsevier, vol. 115(2), pages 316-335, October.
    5. Yuliang Yao & Kevin Xiaoguo Zhu, 2012. "Research Note ---Do Electronic Linkages Reduce the Bullwhip Effect? An Empirical Analysis of the U.S. Manufacturing Supply Chains," Information Systems Research, INFORMS, vol. 23(3-part-2), pages 1042-1055, September.
    6. Ranganathan, C. & Teo, Thompson S.H. & Dhaliwal, Jasbir, 2011. "Web-enabled supply chain management: Key antecedents and performance impacts," International Journal of Information Management, Elsevier, vol. 31(6), pages 533-545.
    7. Yuliang Yao & Martin Dresner & Jonathan Palmer, 2009. "Private Network EDI vs. Internet Electronic Markets: A Direct Comparison of Fulfillment Performance," Management Science, INFORMS, vol. 55(5), pages 843-852, May.
    8. J. Christopher Westland, 2015. "Economics of eBay’s buyer protection plan," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 1(1), pages 1-20, December.
    9. Srinivasan Raghunathan & Arthur B. Yeh, 2001. "Beyond EDI: Impact of Continuous Replenishment Program (CRP) Between a Manufacturer and Its Retailers," Information Systems Research, INFORMS, vol. 12(4), pages 406-419, December.
    10. Kim Fecher & Lauren McCarthy & Daniel E. Porreca & Niam Yaraghi, 2021. "Assessing the Benefits of Integrating Health Information Exchange Services into the Medical Practices’ Workflow," Information Systems Frontiers, Springer, vol. 23(3), pages 599-605, June.

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