Data Sharing in a Multi-Tiered Supply Chain Network

Abstract

As competition has intensified for both domestic and international firms, so has the need to increase operating and production efficiency and reduce costs, implying an increasing focus on integrating processes and sharing data between business partners (Edwards, Peters, & Sharman, 2001). The purpose of this study is to examine the state of data sharing practices between companies within a supply chain configuration and to assess the pervasiveness with which data moves beyond company boundaries.Our findings indicate that the number of tiers data shared correlates significantly with firm performance, but that the type of data shared varies depending on whether the partner is a customer or supplier. Customers appear more likely to receive inventory data and suppliers are most often provided forecast data. The sharing of data is most profound with adjacent supply chain partners. However, it is not uncommon for data to be shared directly with a nonadjacent supply chain member. The number of tiers moderated the relationship between both partnering and process improvement elements as they influenced firm performance.