The evolutionary process and collaboration in supply chains

Abstract

PurposeThe primary aim of this paper is to investigate the evolutionary process and collaboration within Taiwan's cut‐flower supply chains. The paper also go on to discuss the enablement of supply chain coordination through information technology (IT) adoption and network effects, as well as performance improvements achieved by the introduction of the wholesale information sharing hotline (WISH) system.Design/methodology/approachThis paper examines the evolutionary process in Taiwan's cut‐flower supply chains from a macro‐study perspective, based upon primary data obtained from in‐depth interviews. The paper also applies multiple regression analyses from a micro‐study perspective, in order to gain insights into the evolution of market share within the supply chains, thereby facilitating the investigation of the effectiveness of the WISH system.FindingsThe results reveal that the auction houses are heavily dependent upon reliable sources of supply, and that in the earlier stages of the evolutionary process, they played a mediating role in the formulation of auction lines based upon retailer demand through the adoption of the e‐auction mechanism. Since then, the operational performance of the auction houses has been improved considerably, with horizontal coordination being supported by information sharing through the WISH system. The network effect is found to have a positive correlation with the number of participants within the system.Originality/valueThis paper focuses specifically on the evolutionary process of the cut‐flower supply chains in Taiwan, examining the simultaneous achievement of both vertical and horizontal collaboration through the advancement of IT.