An interorganizational perspective on the use of electronically-enabled supply chains

Electronically-enabled supply chains (ESCs) offer the potential for reduced costs and higher sales. Using data from a survey of 183 managers in the food industry, we estimate a series of structural models to test the influence of supply chain position and other key variables on the perceived benefits derived from ESC use and on ESC use itself. Major findings include the following: First, top management support and external influences are both important determinants of ESC use in the food industry. Second, perceived benefits to customers, perceived benefits to suppliers, and perceived internally focused benefits, are all found to influence positively ESC use. Third, distributors are more likely to perceive greater customer benefits from ESC use than are manufacturers and retailers. This perception of greater benefits from ESCs may lead distributors to implement these technologies, thus, potentially, helping distributors forestall direct manufacturer-to-retailer sales.