Perceptions of new zealand managers towards the risks of information sharing across their supply chains (tt)

ABSTRACT This study provided insights into the perceptions of managers about different types of risks of information sharing with their trading partners in New Zealand context, particula

Title of Dissertation:

PERCEPTIONS OF NEW ZEALAND

MANAGERS TOWARDS THE RISKS OF INFORMATION SHARING ACROSS THEIR

SUPPLY CHAINS

A dissertation submitted in the fulfillment

of the requirements for the degree

of

Master of Electronic Commerce (MECom)

at

The University of Waikato

by

THI THANH HUONG TRAN

2014

ACKNOWLEDGEMENTS

I would like to express my very great appreciation to Prof Bob McQueen and Prof Paul Childerhouse, my research supervisors, for their professional advice, patient guidance, and enthusiastic encouragement during this research project My grateful thanks are also extended

to all the participants who assisted me during the data collection and analysis process Finally,

I wish to thank my beloved parents and friends in Vietnam for all their support throughout my study

ABSTRACT

This study provided insights into the perceptions of managers about different types of risks of information sharing with their trading partners in New Zealand context, particularly in Waikato area Furthermore, possible solutions for mitigating these risks were investigated from points of view of key directors A multiple-case study approach was used to analyze empirical data from semi-structured interviews and secondary sources regarding supply chain structure and data integration The main contribution of the research is to extend previous literature in understanding various dimensions of information sharing, especially risks occurring in data exchange process at internal and external levels from perspectives of key personnel Moreover, the study also illustrated the status of data integration among New Zealand companies and their supply chain partners Finally, creating and maintaining trust and long-term relationships with the trading partners were referred as the most important solution to deal with threats of information sharing The research findings would help entrepreneurs understand and evaluate different kinds of threats in data exchange From analyzing these risks, they could make right decisions relating to data transmission as well as develop suitable solutions to mitigate these threats

TABLE OF CONTENTS

ACKNOWLEDGEMENTS i

ABSTRACT ii

TABLE OF CONTENT iii

LIST OF FIGURES vii

LIST OF TABLES vii

1 INTRODUCTION 1

2 LITERATURE REVIEW 4

2.1 Supply chain management 5

2.1.1 Understanding supply chain and supply chain management 5

2.1.2 Collaborative strategy - the new theme of supply chain management 6

2.1.3 The main elements and benefits of strategic collaboration 7

2.2 Information technologies (IT) and information sharing in a supply chain 8

2.2.1 The importance and benefits of IT in supply chain management 9

2.2.2 Internal information systems and data integration in the supply chain 9

2.2.3 Overview of information sharing among supply chain members 10

2.2.4 The process of sharing information in supply chain collaboration 12

2.3 Risks in the context of supply chain management 14

2.4 The specific risks occurring in data exchange process across the supply chain 16

2.4.1 IT security: The challenge in supply chain collaboration 16

2.4.2 Information leakage during data exchange process across the supply chain 18

2.4.3 Lacks of trust and commitment for sharing information 20

2.5 Risk management in the context of supply chain 21

2.6 Research questions 23

2.6.1 Research gaps 23

2.6.2 Research questions 24

2.6.3 Theoretical frameworks 25

Summary 30

3 METHODOLOGY 31

3.1 Justifying the selected research methodology - How multiple-case study fits the research questions 31

3.2 Paradigm 32

3.3 Research sample definition 32

3.4 Data collection process 33

3.5 Background of selected cases 35

3.6 Data analysis 37

3.7 Ethics issues 38

3.8 Validity and reliability of the research 38

Summary 39

4 FINDINGS 40

4.1 Information sharing is important in business operations 40

4.2 Firm size affects the use of the internal information systems and data integration 42

4.3 Managers are highly satisfied with internal information sharing 44

4.4 New Zealand companies are only at the first two stages of data integration across the supply chain 46

4.5 Relationships with partners and types of industries/products influence the content of information sharing across the supply chain 49

4.6 Managers have a positive attitude about the quality of shared information 51

4.7 Five major risks/challenges of information sharing across the supply chain 52

4.8 Information leakage and IT-related threats exist in data exchange process among New Zealand companies and their partners 55

4.9 Creating and maintaining good relationships with partners are considered as a

common solution for mitigating risks of information sharing 57

4.10 Trust is the most important factor in information sharing 59

Summary 60

5 DISCUSSION 62

5.1 Information sharing is important in business operations 62

5.2 Firm size affects the use of the internal information systems and data integration 63

5.3 New Zealand companies are only at the first two stages of data integration across the supply chain 65

5.4 Relationships with partners and types of industries/products influence the content of information sharing across the supply chain 66

5.5 Five major risks/challenges of information sharing across the supply chain 68

5.6 Information leakage and IT-related threats exist in data exchange process among New Zealand companies and their partners 70

5.7 Creating and maintaining good relationships with partners are considered as a important solution for mitigating risks of information sharing 71

5.8 Trust is the most important factor in information sharing 72

5.9 The implications of the research findings 73

Summary 74

6 CONCLUSION 75

6.1 Key conclusions 75

6.2 Limitations 75

6.3 Future research 76

REFERENCES 77

APPENDICIES 83

APPENDIX A 83

Interview protocol 83

Interview questions 84

APPENDIX B 86

APPENDIX C 87

APPENDIX D 92

PERSONAL REFLECTION 99

LIST OF FIGURES

Figure 1 Venn diagram of the study Error! Bookmark not defined Figure 2 The main elements of supply chain collaboration Error! Bookmark not defined Figure 3 Supply chain information and material flows Error! Bookmark not defined Figure 4 Risks sources in the supply chain Error! Bookmark not defined Figure 5 The model of information leakage Error! Bookmark not defined Figure 6 Different types of information incidents in interconnected systems Error!

Bookmark not defined.

Figure 7 The risk management process Error! Bookmark not defined.

LIST OF TABLES

Table 1 12 categories of IT-related risks 17 Table 2 Types of shared information 25 Table 3 Criteria for assessing information quality in data exchange process throughout the supply chain based on the research of Zhou & Benton (2007) 26 Table 4 Technologies supporting information sharing in the supply chain based on the

research of Zhou & Benton (2007) 26 Table 5 Levels of information sharing and types of risks/challenges based on the research of Kolluru & Meredith (2001) 27 Table 6 Risk sources in data exchange process across the supply chain based on the research

of Jüttner et al (2003) and Christopher & Peck (2004) 28 Table 7 Categories of IT-specific risks of data exchange based on the study of Whitman (2004) 28

Table 8 Information leakage based on the research of Zhang et al (2011) 29

Table 9 Risk management models in the context of supply chain management 29

Table 10 Overview of eleven case companies 36

Table 11 Managers’ attitude towards the quality of information sharing 51

Table 12 Average point of main criteria in shared information quality assessment 52

Table 13 Summary of the major findings of the study 61

Table 14 Discussion about the importance and benefits of information sharing 63

Table 15 Discussion about the internal information systems and data integration 64

Table 16 Discussion about the current methods for exchanging data externally 66

Table 17 Discussion about the content of information sharing 68

Table 18 Discussion of risks/challenges of information sharing 69

Table 19 Discussion about information leakage and IT security 70

Table 20 Discussion of solutions for risks mitigation in information sharing 72

Table 21 Discussion about trust in information sharing 73