An investigation of information technology investments on buyer‐supplier relationship and supply chain dynamics

The objective of this paper is to identify the nature of interactive feedback relationships among information technology (IT) deployment, buyer‐supplier relationship, and supply chain structure, and also to ascertain whether or not there exists a significant effect from product customization level on such interactive feedback relationships.

Based on this identification through the utilization of the system dynamics methodology, one of the dynamic simulation methods, we can attempt to suggest a set of advisable SCM strategies for effective IT investment and deployment.

Investigating the responses of IT level according to the dynamic changes of product customization level, buyer‐supplier relationship, and supply chain structural issues is a requisite first step. This would be helpful in suggesting a dynamic E‐technology investment and adoption model appropriate for integrated supply chain management.

The insights developed in this paper should provide theoretical foundations and practical guidelines as to the role and function of B‐to‐B electronic commerce for efficient supply chain integration.