Studies on the Utilization of Electronic Trading Systems in Supply Chain Management

OF DOCTORAL DISSERTATION AALTO UNIVERSITY SCHOOL OF SCIENCE AND TECHNOLOGY P.O. BOX 11000, FI-00076 AALTO http://www.aalto.fi Author Jouni Kauremaa Name of the dissertation Studies on the Utilization of Electronic Trading Systems in Supply Chain Management Manuscript submitted 4.12.2009 Manuscript revised 22.4.2010 Date of the defence 31.5.2010 Monograph Article dissertation (summary + original articles) Faculty Faculty of Information and Natural Sciences Department Department of Industrial Engineering and Management Field of research Industrial Management Opponent(s) Professor Charles Møller, Aalborg University Professor Virpi Tuunainen, Aalto University School of Economics Supervisor Professor Kari Tanskanen Instructor Professor Jan Holmström Abstract Innovations in information technology, Internet-technology in particular, have provided a significant new potential to exchange data beyond organizational boundaries and reduce the costs of interorganizational supply chain management. Furthermore, modern e-business standards, such as the RosettaNet, have been proposed as key enablers of efficient and flexible operational linkages between trading partners in the supply chain. This dissertation investigates three overall research questions: (1) how do companies utilize electronic trading systems in supply chain management; (2) what kinds of benefits do electronic trading systems provide in supply chain management; and (3) what is the role of newer e-business standards in supply chain management. The dissertation is a compilation of four individual studies reported as four peer-reviewed publications. Firstly, on RQ1 the dissertation finds that (1) electronic trading system utilization realizes on two levels: relationship mode (unilateral or bilateral) and technical design (function, architecture, automation, and communication standards and networks) and that (2) effective utilization of electronic trading systems is characterized by differentiation over transaction instances (partner and task combinations). Secondly, on RQ2 the dissertation finds that (1) cooperative, operational, and commercial supply chain integration are distinct results of electronic trading system utilization in supply chain management and that (2) unilateral adjustments supplement benefit generation from electronic trading system utilization. Finally, on RQ3 the dissertation finds that (1) the RosettaNet e-business standard does not fully compensate for the weaknesses of older EDI-based e-business standards and that (2) dyad-level application of e-business standards calls for dyadic adjustments amongst the trading partners. The dissertation contributes to understanding on how to effectively utilize contemporary electronic trading systems in supply chain management.