Information Technology in Supplier Networks: A Theoretical Approach to Decisions about Information Technology and Supplier Relationships

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Under what conditions does the use of modern information technology in procurement relationships lead to more dynamics, e.g. in the form of using (electronic) marketplaces; under what conditions are long-term partnerships predominant? This book analyzes the impact of advances in information technology on procurement decisions in organizations. On the methodological basis of transaction cost theory and search theory a formal model is developed to represent decisions on supplier selection and the use of information technology. General statements are made in respect of the effect of progress in information technology on the expected duration of supplier contracts and the frequency of supplier changes.