Evaluating the Economic Impacts of IT-Enabled Supply Chain Collaboration

1/01/2005
(Original Publish Date: 2004)

The goal of this paper is to identify the value impacts of supply chain collaboration and design a measurement system to quantify them. Treating process sharing as a special form of supply chain collaboration, we focus on developing measures for evaluating the performance of RosettaNet technology. The empirical findings show that supply chain collaboration creates most value in the extended supply chain relationship, where most impacts are indirect. Further, corporate supply chain strategies determine how different value components affect the performance of supply chain collaboration. For instance, technology and relationship improvement are key values for non-adopters to improve their readiness for adoption. Adopters develop their expansion strategies by first putting their focus on improving their business processes and then on improving their interactions with industrial environments. Therefore, this valuation framework, extending from traditional IT valuation, provides companies a guideline for measuring the value they should target on, and thereby allows companies to draw the roadmap for better performance.