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Keywords Internet, Supply chain, Relationship marketing, Uncertainty
Abstract E-commerce is such a new phenomenon that little research has addressed the effects it has on relationships in supply chains. A qualitative study was conducted with eight e-commerce companies in order to construct theoretical relationships with which to develop a grounded theory of the impact of e-commerce on managing supply chain relationships. The e-commerce environment was perceived as highly uncertain, stemming from increased information visibility and dynamic market structures. A stronger emphasis on relationship management as part of business strategy enables managers to manage uncertainty better. Interestingly, increased information does not decrease the perception of uncertainty, but creates more uncertainty. As logistics is the function often involved with both information and relationship management within the supply chain, it may prove to be invaluable in helping firms succeed in this dynamic environment. Our research also found support for the application of transaction cost analysis and the resource dependence theory in explaining interorganizational relationship formation in e-commerce.
Introduction
A supply chain can be defined as three or more organizations directly linked by one or more of the flows of products, services, finances, and information from a source to a customer (Mentzer et al, 2001). Management of the supply chain is essentially management of the relationships and activities among the member organizations. These relationships range from single transactions to complex interdependent relationships. As the business environment becomes more complex, organizations recognize that many benefits can be obtained from closer, long-term relationships (Ganesan, 1994). Day (2000) ventures to say that committed relationships are among the most durable of advantages because of their inherent barriers to competition. The goal of supply chain management is for member organizations to work together in close, long-term relationships to increase the competitive advantage of the supply chain as a whole (Mentzer et al., 2001).
The phenomenon referred to as "the next business revolution" - the nexus of computers, networks, people, and business goals for purposes of selling goods, services, and information - is an innovative way to cut costs, grow markets and profitability, and improve shareholder return relative to traditional business methods (Palmisano, 1998). This combination is the business phenomenon referred to as e-commerce: the trade of goods and services that takes place electronically...