Agent-based supply chain disintermediation versus re-intermediation: economic and technological perspectives

Abstract

One important stream of information systems research addresses the role and future of supply chain and market intermediaries. But whereas many researchers hypothesize a trend toward disintermediation—principally enabled by information technology (IT)—others proffer theoretical arguments for IT-enabled re-intermediation. With regard to IT, it is particularly unclear whether the emerging technology associated with software agents is better suited to enable supply chain disintermediation or re-intermediation. And if agent technology is better suited to either disintermediate or re-intermediate supply chain activities, can we say this is always the case? Or will certain contingency factors intervene in various circumstances to suggest agent-based disintermediation over re-intermediation in some cases and vice versa in others? The research described in this paper takes some first steps toward addressing these questions. We first draw from the intermediation economics literature to summarize some of the key works and arguments for and against IT-based dis/re-intermediation, and we use this discussion to outline a preliminary set of conditions favoring agent application in such roles along the supply chain. We then draw from the agent technology literature to summarize key capabilities associated with extant agent technologies, and we compare such emerging IT with more conventional information systems and applications. Guided by this background of intermediation theory and extant agent capability, we describe a proof-of-concept multi-agent system called ‘the Intelligent Mall’ in the context of supply chain dis/re-intermediation. We use this implemented multi-agent system to show how it reflects current agent technology, and we identify the contingent economic conditions that can be satisfied through this implemented system. The paper then closes, as we identify a several new lines of research stemming from this investigation. © 2000 John Wiley & Sons, Ltd.