Size and culture as determinants of IT strategy in international supply chain management

INTRODUCTION The objective in supply chain management is to manage all activities associated with the flow of products and services from the beginning of the manufacturing or processing cycle through to the end-user [Handfield and Nichols, 1999]. The challenge is to manage this process in such a way as to establish collaborative alliances with strategic suppliers [Dyer, Co, Chu, 1998] and to explore ways in which the management of suppliers can be used to gain a competitive advantage in the industry [Porter and Millar, 1985]. Information technology plays a pivotal role in the firm’s ability to provide the information necessary to manage and control an effective alliance [Bowersox and Closs, 1996]. For Fortune 500 companies the achievement of an integrated and seamless supply chain systems is a formidable challenge. What about smaller organizations or suppliers located in the far corners of the globe? Do these variables affect the development of textbook IT supply chain systems? This paper looks at two organizations, one from South America and another from the US. Several conclusions are drawn about size and culture.