The Effect of Information Technology on Arms-Length Buyer-Supplier Relationship

This paper posits that arm`s length buyer-supplier relationship as the intermediate type between market exchange relations and strategic partnership might be advisable, and information technology may have a role as a mechanism actualizing the effects of such arm`s length relationship by strategic supply-line diversification. Based on the theoretical analysis on interactive feedback relationships among IT level, buyer-supplier relationships, and supply chain structure, we suggest a set of advisable buyer-supplier relationship type for efficient supply chain management. Also, doing so would be helpful in suggesting a dynamic IT investment and adoption model appropriate for the establishment of productive buyer-supplier relationship, and further in providing theoretical foundations and practical guidelines on the role and function of B-to-B E-commerce for efficient SC integration.