| The purpose of this dissertation is to examine the factors associated with vendor-managed-inventory (VMI) and information sharing practice along the supply chain and to evaluate the related performance effects. The empirical tests are conducted using cross-sectional survey data collected by IndustryWeek's 1999 value chain survey.; The results indicate that firms' decisions of VMI adoption are consistent with the predictions of transaction cost theory. Specifically, when compared with firms that do not invest in VMI, those that do invest are larger and involved in more transaction specific investment. Robustness analyses indicate that firms are more likely to implement VMI with trading partners that have complementary resources. Second, on overall basis, both suppliers and customers of VMI practice improve on operational efficiency and service level performance.; The results also indicate that firms engage in sharing sales forecast information with suppliers are more likely to have "build to forecast" as their order fulfillment practice, to use Just-In-Time (JIT) practice with their suppliers, to deal with a fewer number of customers and to have a declining number of suppliers as compared with firms not engaged in sharing sales forecast information. Similarly, firms that engage in sharing operational information with customers are more likely to have JIT practice with their customers and have a fewer number of customers. Second, regarding the perceived benefits of information sharing, firms that share both sales forecast information with suppliers and operational information with customers are more likely to have a better integrated and coordinated supply chain and to report greater perceived benefit from information sharing. |
