The Study of Competitive Priorities and Information Technology
Selection: Exploring Buyer and Supplier Performance
Competitive priorities are the critical operational dimensions a process or supply chain must possess to satisfy its internal or external customers. The concept of competitive priorities is very important to organizations because it helps them set up achievable goals and it has long been known to be associated with organizational performance. This research introduces an alternative theory to explain the mechanism by which the buying firms and suppliers adopt different competitive priorities as they enter into buyer-supplier relationships and to explore further how technology choices influence the competitive priority adaptation. Using empirical data collected from the Society of Manufacturing Engineer’s executives, a confirmatory factor
analysis was used to refine the measurement. The measures were refined to satisfy key
measurement rigors including convergent validity, discriminant validity, and reliability. The structural model results show that suppliers’ adaption of competitive priorities and IT use is largely influenced by buyers’ level of competitive priorities and IT use; however, there is no clear relationship pattern relating to suppliers’ competitive priorities and IT use.
The topic of competitive priorities was first brought about in operations management by Skinner (1969). Skinner identified competitive priorities for two furniture manufacturers as one manufacturing a low-cost product line and the other making high-price, high-style furniture. He stated that the two manufacturers would need to develop different policies, personnel, and operations to be able to carry out their strategies successfully. Early researchers in manufacturing strategy (Wheelwright, 1984; Skinner, 1985) considered the competitive priorities to be mutually exclusive. They maintained that a manufacturer has to choose between conflicting competitive priorities, such as delivery and flexibility. Skinner (1996) later accepted the notion that choosing
competitive priorities could be dynamic. He maintained that some trade-offs do exist such as between quality and cost.
The Study of Competitive Priorities and Information TechnologySelection: Exploring Buyer and Supplier PerformanceCompetitive priorities are the critical operational dimensions a process or supply chain must possess to satisfy its internal or external customers. The concept of competitive priorities is very important to organizations because it helps them set up achievable goals and it has long been known to be associated with organizational performance. This research introduces an alternative theory to explain the mechanism by which the buying firms and suppliers adopt different competitive priorities as they enter into buyer-supplier relationships and to explore further how technology choices influence the competitive priority adaptation. Using empirical data collected from the Society of Manufacturing Engineer’s executives, a confirmatory factoranalysis was used to refine the measurement. The measures were refined to satisfy keymeasurement rigors including convergent validity, discriminant validity, and reliability. The structural model results show that suppliers’ adaption of competitive priorities and IT use is largely influenced by buyers’ level of competitive priorities and IT use; however, there is no clear relationship pattern relating to suppliers’ competitive priorities and IT use.The topic of competitive priorities was first brought about in operations management by Skinner (1969). Skinner identified competitive priorities for two furniture manufacturers as one manufacturing a low-cost product line and the other making high-price, high-style furniture. He stated that the two manufacturers would need to develop different policies, personnel, and operations to be able to carry out their strategies successfully. Early researchers in manufacturing strategy (Wheelwright, 1984; Skinner, 1985) considered the competitive priorities to be mutually exclusive. They maintained that a manufacturer has to choose between conflicting competitive priorities, such as delivery and flexibility. Skinner (1996) later accepted the notion that choosingcompetitive priorities could be dynamic. He maintained that some trade-offs do exist such as between quality and cost.
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