An Empirical Investigation of Extensible Information Sharing in Supply Chains

Abstract

Although information sharing is highly desirable in a supply chain, the reality is that most supply chain participants restrict themselves to dyadic information sharing (i.e., information sharing between immediate, first-tier supply chain participants). In this investigation, data is collected from one system that permits extensible information sharing (i.e., information sharing beyond immediate, first-tier supply chain participants) to empirically investigate the determinants of extensible information sharing. The goal of this study is to identify specific actions that promote extensible information sharing. It uses hierarchical regression analysis to examine the contribution of these actions, after controlling for certain dyadic information sharing and industry practices. According to the results, companies that pursue real-time integration of the supply chain and are willing to change the roles and responsibilities of their employees engage in extensible information sharing. Surprisingly, it is found that companies that have a long-term relationship with immediate supply chain participants are less likely to expand their information sharing beyond dyadic information sharing, perhaps because of a perception that their information needs are adequately met.