Integration through orchestration

Abstract

Purpose The purpose of this paper is to examine the mechanisms through which the use of enterprise systems (ESs) enhances buyer-supplier integration (BSI). More specifically, the authors explain a model where ES enhances BSI indirectly, mediated by inventory management capabilities (IMCs), as the way ES enhances BSI remains under-explored in the literature. Design/methodology/approach Application of the resource orchestration framework to explain how capabilities and mechanisms interplay to enhance BSI. Data were collected by means of a survey instrument. Data collection took place as part of a larger project, sponsored by the Spanish Government, to evaluate logistics competitiveness in Spain. Findings ES enhances BSI by serving as a coordinating mechanism that maintains capability configurations in a value-creating alignment. IMC plays a key, yet under-explored role as a mediating mechanism that supports ES-enabled BSI. Research limitations/implications First, this research does not fully capture the multi-party nature of the supply chain context. Second, data collection was limited to companies that were more likely to have a systematic approach to logistics issues (i.e. large- and medium-sized companies) and companies based in Spain. Originality/value This paper enhances both scholarly and practitioner understanding of the mechanisms through which the implementation and use of ES contributes to BSI. In addition, this paper integrates literature from different fields (e.g. strategy, information systems, and operations) to gain a better understanding of how the implementation and use of ES affects BSI.