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The word "partnership" is used broadly to encompass formal and informal, one-time and recurring, contractual and non-contractual interorganizational exchanges and relationships.
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Electronic Data Interchange or EDI refers to the transmission of structured data between two computers. It is a fairly old, widely used, but quite inflexible method of sharing data between computing systems.
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Electronic exchanges over public networks (as compared to private networks) are more likely to be loosely coupled. This is not surprising considering that offering standardized connectivity options is a major value proposition for such electronic marketplaces. Companies are also known to conduct "arm's-length" transaction or spot transactions over such public networks. Since these transactions generally relate to products of low criticality (such as indirect materials like office supplies), the perceived level of dissipation risk is low and this explains the loose coupling. On the other hand, coordination and collaboration type exchanges are likely to be of high criticality where the perceived level of dissipation risk is higher and so companies seek tight coupling to control quality and also increase switching costs.
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40
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85039319497
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note
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These partnership forms and configurations reflect the three major types of interorganizational dependencies - pooled, sequential, and reciprocal. Pooled interdependence refers to establishing and sharing a common pool of resources to realize scale and scope efficiencies. Use of public marketplaces to engage in loosely coupled transactional exchanges (of non-critical or commodity type items) is an example of such pooling of resources. The level of interdependence is relatively low in such transactional relationships. Sequential interdependence reflects a series of interconnected tasks and activities that need to be performed in a certain order to deliver value. For instance, production of a certain product is contingent on the assembly of certain components, which in turn is dependent on the supply of those components. Such interdependence requires close monitoring and control. Privately managed and tightly coupled electronic linkages among a network of assemblers, suppliers, and manufacturers reflects this higher level of organizational interdependence. Finally, reciprocal interdependence represents extensive sharing of resources between and among firms to realize different goals - ranging from creating a new product or improving the design of an existing product, or better forecasting the demand for a product. Collaboration focused electronic partnerships exhibit reciprocal interdependencies.
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41
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85039337951
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note
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Enterprise Resource Planning (ERP) systems are electronic platforms used to consolidate, standardize, and integrate business processes and data across the organization. Seamless sharing of information and data across business and functional units is one of the motivations for implementing ERP systems. SAP, BAN, Oracle, and People-Soft are some wellknown vendors of ERP systems.
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