Adoption of web-based order-processing systems: experiences from tier-1 suppliers in the automotive supply chain

Abstract

This research studies automobile industry suppliers in Thailand, who have implemented VMI using web-based order-processing technology. It examines their motivations and barriers for implementing the technology, and identifies the enabling factors with greatest impact on the outcomes of such implementation. Data was obtained from 70 tier-1 suppliers of the two biggest automobile assemblers in Thailand. Exploratory factor analysis was used to construct motivation, enabling factors, difficulties/barriers and outcomes of web-based order-processing technology implementation. Multiple linear regression was then used to examine the relationships between enabling factors and operational outcomes. The results show that improving customer responsiveness and the need to retain competitive advantage rather than cost-based orientation were the primary drivers of implementation of web-based order processing. This case provides insights to enable successful implementation by organisations that are planning to deploy the technology, particularly in the early stages of technological diffusion in emerging economies.

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