The Effects of Electronic Supply Chain Design (e-SCD) on Coordination and Knowledge Sharing: An Empirical Investigation

Customization is a critical success factor in current business environment. One of the most important components that make fast and inexpensive customization possible is electronic supply chain design (e-SCD). e-SCD is a supply chain design which integrates and coordinates suppliers, manufacturers, logistic channels, and customers using information technology (IT). In this study, a model that shows the effects of e-SCD on the customization capability of companies is developed. From previous studies, the model identifies three major effects of e-SCD – electronic linkage effect, supply chain coordination effect, and co-engineering effect. The model also shows a process through which an electronic supply chain network is transformed from a simple infrastructure for data exchange into a knowledge-sharing network for fast response and customization. The model is tested using the data collected from automobile industry in Korea. The results show that e-SCD has significant effects on the supply chain coordination and coengineering. This implies that e-SCD can be an effective management tool to deliver customized products with right timing and price. It is also shown that the ‘involvement’ of entities in a supply chain is a critical factor in converting a supply chain network from an infrastructure for data exchange to a knowledge-sharing network .