Investing in Networkability to Improve Supply Chain Peformance

The main aim of this paper is to analyse and explicate the linkages between IT investments, networkability of an organization, the organizational performance, and the inter-organizational (supply chain) performance. A research model was developed linking IT-investments to networkability to information sharing and organizational dependency, and ultimately to organizational and networked performance. The model was applied in a B2B network of Aces Direct (an SME retailer) and Tech Data. Case analysis supports earlier findings that increased information sharing correlates with improved performance We found that SME investments in networkability can lead to higher business performance, but that SME success seems to depend on the type of IT investments. Relation specific (1:1) investments seem to strengthen dependency while non-specific IT investments in the network business buses (1: n) seem to decrease dependency, increase the information sharing, and increase network performance