Journal
MANAGEMENT SCIENCE
Volume 55, Issue 5, Pages 843-852Publisher
INFORMS
DOI: 10.1287/mnsc.1080.0990
Keywords
interorganizational systems; electronic markets; supply chain performance; electronic data interchange; Internet
Funding
- Lehigh University
- Robert H. Smith School of Business at the University of Maryland
Ask authors/readers for more resources
Prior literature has documented the performance benefits from the use of electronic data interchange (EDI) and the Internet. Using purchase and fulfillment records from the U. S. government's Federal Supply Service, we provide a direct comparison of performance between a private network EDI channel and an Internet electronic market. Performance is measured using order cycle time and complete orders fulfilled. Our findings show that the Internet-based electronic market outperforms the EDI-based channel on these two important measures. Order cycle times were significantly lower when using the Internet-based electronic market, whereas the percentage of complete shipments was significantly higher after controlling for product, transaction, seller, and buyer-specific factors. The electronic market even outperforms the EDI channel when buyer and transaction characteristics favor the use of EDI. Because EDI is still prevalent in many industries, these results point to the gains that may be realized by switching to the newer technology.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available