Limits to Interfirm Coordination through Information Technology: Results of a Field Study in Consumer Packaged Goods Distribution.

Author List: Clemons, Eric K.; Row, Michael C.;
Journal of Management Information Systems, 1993, Volume 10, Issue 1, Page 73-95.
Researchers have suggested that information technology (IT) can reduce coordination costs, leading to increased coordination and cooperation among buyers and suppliers in an industry. However, improved coordination through IT, and the economic benefits from that coordination, may not be fully realized in practice; this conclusion is suggested by a field study in the consumer packaged goods industry investigating the impact of IT on interactions between manufacturers and retailers. New coordination mechanisms are emerging, driven by checkout scanner systems and IT, that permit more tightly coupled logistics operations in the distribution channel. The potential benefits of this increased coordination, through reduction in inventory and more stable manufacturing, are dramatic. However, we have observed considerable resistance by retailers to these innovations. Analysis of our field study results suggests that this resistance is due to the impact of the new coordination mechanisms on bargaining power; retailers perceive that their bargaining power will be eroded under the new coordination structure, and fear that this will preclude their sharing in the economic benefits.
Keywords: bargaining power in marketplace; intercorporate coordination; interorganizational information systems
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#256 0.175 coordination mechanisms work contingencies boundaries temporal coordinating vertical associated activities different coordinate suggests dispersed coordinated horizontal relative demand spatial hours
#52 0.140 supply chain information suppliers supplier partners relationships integration use chains technology interorganizational sharing systems procurement buyer interfirm coordination enterprises flexibility
#246 0.114 strategic benefits economic benefit potential systems technology long-term applications competitive company suggest additional companies industry operating costs difficult substantial total
#42 0.113 perceived results study field individual support effects microcomputer pressure external usefulness test psychological obligations characteristics variables indicate existence availability investigating
#34 0.104 negotiation negotiations using potential power agreement paper bases partners ending negotiators offers visualization messaging instant audio e-marketplaces provide positions agents
#171 0.078 markets industry market ess middle integrated logistics increased demand components economics suggested emerging preference goods interesting form recent vertically chinese
#268 0.067 arguments retailers manufacturers retailer internet claim manufacturer consumer argumentation referral agency store third-party upstream argument wholesale rely samples electronic plus