On the drivers of extended enterprise and the problems of integration and governance

Abstract

The notion of extended enterprise (EE) has been principally discussed in the supply chain management perspective, dealing with problems of business processes integration and time-cost reduction. Even if the literature is rich and different definitions and perspectives are proposed, perhaps, important questions, such as the drivers of EE and the problems of integration and governance, still have not been faced in an exhaustive way. This paper assumes that, in the real world, the diffusion of the EE model is not the effect of a simple reorganisation of the large enterprise, aiming at improving static efficiency. The thesis is that EE leadership does not originate from cost control capabilities or monopolistic arrangements, but directly from the market. Dealing with the problem of recognising the drivers and nature of EE, aspects such as new marketing paradigms, impact on competitive strategy and structure, and the problems of integration and governance are analysed. This new perspective is verified on some relevant cases.