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Analyzing Interorganizational Information Sharing Strategies in B2B E-Commerce Supply Chains,” in

By Robert J. Kauffman and Hamid Mohtadi


Information sharing in procurement occurs in many rich and varied industry contexts in which managerial decisions need to be made and organizational strategy needs to be formulated. This paper extends the theoretical results that are available to understand how information sharing ought to work in procurement contexts that involve investments in interorganizational information systems and collaborative planning, forecasting and replenishment practices. Our primary research question is: How and under what circumstances does a firm that plays the role of a buyer in supply chain management decide to share information on key variables, such as point-of-sale consumer demand data with its supplier, up the supply chain? The answers that we provide are based on the analysis of a sequential form game-theoretical model of buyer and supplier profits in the presence of uncertainties about final consumer demand, as well as the different operational cost regimes associated with information sharing and information withholding strategies, and the information technologies that support them. Our results provide normative guidance to supply chain buyers about how to interpret different demand uncertainty scenarios to improve the likelihood that their decisions will maximize the value of their firms

Year: 2003
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