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Adopting New Technologies for Supply Chain Management

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Transportation Research Part E 39 (2003) 95–121 www.elsevier.com/locate/tre Adopting new technologies for supply chain management
Kirk A. Patterson a, Curtis M. Grimm b, Thomas M. Corsi a c,*

c

Department of Operational Sciences, Graduate School of Engineering and Management, Air Force Institute of Technology, USA b Robert H. Smith School of Business, University of Maryland, College Park, MD 20742, USA Supply Chain Management Center, Robert H. Smith School of Business, University of Maryland, College Park, MD 20742, USA

Abstract Integration of supply chain activities and the technologies to accomplish it have become competitive necessities in most industries. Accordingly, the trend toward greater use of supply chain …show more content…

. . and create and commercialize a stream of new products and processes that shift the technology frontier, progressing as fast as their rivals catch up’’ (Porter and Stern, 2001, p. 28). One area of innovation that has been the focus of significant discussion is information technology adoption. US executives allocate 40% of new capital equipment investment to technology (Hitt and Brynjolfsson, 1996). Innovative information technologies have the capacity to impact organizational structure, firm strategy, communication exchange, operational procedures, buyer– supplier relationships, and bargaining power (Bowersox and Daugherty, 1995; Lewis and Talalayevsky, 1997; Williams et al., 1997; Clemons and Row, 1991). Information technology may also increase organizational productivity, flexibility, and competitiveness (Cash and Konsynski, 1985) and stimulate the development of interorganizational networks (Daugherty et al., 1995). Information systems have become so pervasive that they are now considered to be a requirement for doing business in todayÕs competitive marketplace (Clemons and McFarlan, 1986; Dawe, 1994; Rogers, 1990; Rogers et al., 1992). Supply chain management is recognized as an important area for information technology innovation and investment (Bowersox and Daugherty, 1995). Supply chain management has been defined by The Global Supply Chain Forum as ‘‘. . . the integration of key business processes from end user through original suppliers that

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