The extended enterprise: a decade later

The purpose of this paper is to review the state of the art in extended enterprise (EE) thinking.

The approach used the 2004 book, The Extended Enterprise, as the jumping-off point to review the literature and better define the EE. What was once projected as depicting the future state of supply chain management is now shaping the way in which organizations interact with their customers and suppliers. New issues in this arena include considerations of risk, knowledge sharing, and supply chain performance. The authors review these new developments, describe how they might affect the collaborative supply chain, and posit future trends.

The major theme from this research is that EE thinking is emerging among global companies as a primary way in which firms now compete. The term “Collaborative supply chains” appears, in some circles, to replace the term “EE.” Yet the principles and tenets delineated in the term “EE” are captured in “collaborative supply chains.” The authors find that the EE concept is distinct from other supply chains or subcontracting relationships in that firms are linked as learning organizations. Also, the authors have noted barriers to collaboration such as an unwillingness to share information, lack of trust, perceptions of lack of mutuality and symmetry, and mistrust about the fairness of benefits, costs, and risk sharing.

The limitations of this research could be a function of the papers reviewed since this review was not intended to be exhaustive but merely illustrative of the extant research. Nonetheless, the conclusions from the focus on risk, knowledge sharing, and performance hold strong implications for more collaborative relations among supply chain partners.

Given the importance of supply chain partnerships, this research adds perspective for those firms that are reluctant to engage in such collaborative partnerships. This review contributes to extended enterprise thinking and is therefore insightful for both academics and practitioners.