Abstract

Information Technology (IT) has been widely employed in supply chain operations, helping companies to respond to clients’ needs in real time, facilitate paperless transactions, reach out to difficult-to- access markets, and outperform competitors. This paper presents a theory-driven, validated higher- order construct that measures e-supply chain capability, integrating typical procurement and order- taking functions within an organization’s supply chain. It is a response to a call in information systems literature to develop and assess multidimensional IT capabilities. Drawing on tenets from both resource based view and relational view, we developed a conceptual definition of e-supply chain capability. Using structural equation modeling techniques, we constructed a measurement model of e-supply chain capability encompassing four dimensions: communication with customers, order taking, procurement, and communication with suppliers. The new validated measurement model of e-supply chain capability offers opportunities to expand IS research in supply chain management.

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