Integration through orchestration: the interplay between enterprise systems & inventory management capabilities

Lorenzo, Oswaldo; Claes, Björn; Oksana, Koryak and Angel, Diaz (2017). Integration through orchestration: the interplay between enterprise systems & inventory management capabilities. Journal of Enterprise Information Management, 30(4) pp. 555–583.

DOI: https://doi.org/10.1108/JEIM-02-2016-0060

Abstract

Purpose: Examine the mechanisms through which the use of enterprise systems (ES) enhances buyer-supplier integration (BSI). More specifically, we explain a model where ES enhances BSI indirectly, mediated by inventory management capabilities (IMC), as the way ES enhances BSI remains under-explored in the literature.
Design/methodology/approach: Application of the resource orchestration framework to explain how capabilities and mechanisms interplay to enhance BSI. Data was collected by means of a survey instrument. Data collection took place as part of a larger project, sponsored by the Spanish government, to evaluate logistics competitiveness in Spain.
Findings: ES enhances BSI by serving as a coordinating mechanism that maintains capability configurations in a value-creating alignment. IMC plays a key, yet under-explored role as a mediating mechanism that supports ES-enabled BSI.
Research limitations/implications: First, this research does not fully capture the multi-party nature of the supply chain context. Second, data collection was limited to companies that were more likely to have a systematic approach to logistics issues (i.e. large and medium-sized companies) and companies based in Spain.
Originality/value: this paper enhances both scholarly and practitioner understanding of the mechanisms through which the implementation and use of ES contributes to BSI. In addition, this paper integrates literature from different fields (e.g. strategy, information systems and operations) to gain a better understanding of how the implementation and use of ES affects BSI.

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