Industrial Marketing Management
Industrial Communicateing Address 35 (2006) 493 – 504 The contact of counsel technology on yield fetter capabilities and steadfast operation: A wealth-establiscatter estimate Fang Wu a, Sengun Yeniyurt b, Daekwan Kim c, SR Tamer Cavusgil d,* University of Texas at Dallas, Aceed States University of Nevada, Reno, Aceed States c Florida State University, Aceed States d The John W. Byington Endowed Chair in Global Communicateing, Department of Communicateing and Yield Fetter Address, The Eli Broad Graduate School of Address, Michigan State University, 370 North Calling Multifold, East Lansing, MI 48824, Aceed States b a
Vile 31 January 2005; vile in revised carepresentation 5 May 2005; genuine 15 May 2005 Availefficacious online 11 July 2005 Abstract Restraintms increasingly lean on counsel technology (IT) to rectify the yield fetter rule. Still, departed token intimates that the cannonade in IT per se does attributeefficacious insure augmentd restraintmal operation. Intent from the wealth-establiscatter estimate, this experiment proffers that IT-enabled yield fetter capabilities are steadfast-specific, and arduous-to-copy counter restraintms. These capabilities can succor as a catalyst in changeing IT-akin instrument into preferefficacious rebuke coercion a steadfast.
Establiscatter on axioms unmoved from geodesy yield fetter and logistics managers in diverse industries, the give experiment scatters vain on these childrens. The perceiveings yield a innovating perspective in evaluating IT cannonade in the yield fetter rule. D 2005 Elsevier Inc. Integral rights silent. Explanationwords: Counsel technology; Yield fetter capabilities; Wealth-establiscatter estimate 1. Introduction The verification of counsel technology (IT) in managing the yield fetter rule has drawn increasing deemation in the oppidan cosmos-people. Indeed, a innovating experiment frequenteded by Coercionrester Elaboration betokens that U. S. anufacturers are increasingly contingent on the services brought environing by IT to: rectify yield fetter spirituality, bring cycle occasion, terminate preferefficacious teachableness, and hand issues to customers in a occasisdenote carriage (Radjou, 2003). However, IT cannonade in the yield fetter rule does attributeefficacious insure a stronger restraintmal operation. The question on the ‘‘IT-productivity’’ absurdity and other anecdotal token intimates that the contact of IT on steadfast operation recrement unclear (e. g. , * Corresponding agent. Tel. : +1 517 432 4320; fax: +1 517 432 4322. E-mail addresses: [email protected] edu (F. Wu), [email protected] edu (S.
Yeniyurt), [email protected] acns. fsu. edu (D. Kim), [email protected] edu (S. T. Cavusgil). 0019-8501/$ – conceive face stuff D 2005 Elsevier Inc. Integral rights silent. doi:10. 1016/j. indmarman. 2005. 05. 003 Brynjolfsson, 1993; Lucas & Spitler, 1999). In occurrence, the option of a detail technology is abundantly transcriptd by other steadfasts, and it repeatedly does attributeefficacious yield a sustained competitive usage coercion the inoculateing steadfasts (e. g. , Pocourteous & Dent-Micallef, 1997). Attributeefficacious surprisingly, determining how IT as a wealth can carepresentation a sustained competitive usage coercion a steadfast recrement to be an unresolved children (Barney, Wright, & Ketchen, 2001).
The partary extrinsic of this monograph is to yield some innovating perspectives in interpreting how IT can carepresentation a sustained competitive usage coercion the steadfast. In detail, intent from the wealth-establiscatter estimate and yield fetter address lore, we prpradduce that IT-enabled yield fetter capabilities can succor as a catalyst in changeing ITakin instrument into preferefficacious rebuke coercion a steadfast. The rebuke of IT can be augmentd when it is embedded throughextinguiscatter the yield fetter rule (Pocourteous & Dent-Micallef, 1997). The applianceation of IT in the yield fetter can strengthen a steadfast to enunciate and glean apprehension stores environing its 94 F. Wu et al. / Industrial Communicateing Address 35 (2006) 493 – 504 customers, suppliers, and communicate arrogations, which in shape swings steadfast operation (Tippins & Sohi, 2003). Succor, we ponder span IT-akin instrument-IT ordainion and IT alignment-and their roles in creating preferefficacious rebuke coercion the steadfast. Departed lore tends to experiment IT as a stand-alundivided wealth extraneously accordingly the rebuke betwixt IT, a steadfast’s strategic seriousness, and the balanceintegral calling rulees (Clemons & Row, 1991; Tippins & Sohi, 2003).
In this experiment, IT ordainion measures the distance to which a steadfast applies the state-of-the-art technology to raise its yield fetter capabilities age IT alignment cogitates a steadfast’s strategic seriousness in coordinating and integrating its acunderstanding IT with that of its yield fetter portioners. By endueigating these span portioicular IT-akin instrument that are restraintmally embedded, we shirk the pitfintegral of treating IT as a stand-alundivided wealth, redundant to a sounder evaluation of the immanent of IT in influencing steadfast operation.
Third, we enunciate a innovating conceptualization of yield fetter capabilities as a preferable-ordain erect, consisting of impure bigness: counsel remodel, coordination, life integration and yield fetter echoingness. Departed lore has discussed undivided or a scant portioicular aspects of the balance capabilities portioially (e. g. , Frohlich, 2002; Leek, Shapebull, & Naude, 2003; Sahin & Robinson, 2002; Stump & Sriram, 1997). No preceding experiment yields a conceptualization of yield fetter capabilities as a preferableordain erect that encompasses integral of the balance bigness.
Our bulk yields a composite abjuration in measuring yield fetter capabilities counter restraintms. Since IT in the yield fetter rule has diverse causes, we proviso the treatment of this experiment to yield fetter despatch rule (SCCS)—a subformal of yield fetter address rule (SCMS). An SCCS is defined here as an counsel rule portion-outd by agent portioners in ordain to adapt electronic proceedings, truth and arrogation calibration, and collaborative coercionecasting and planning (Bowersox, Closs, & Stank, 1999).
A initiatory SCCS incorporates electronic interface rules such as electronic axioms letter (EDI) and the Internet, to cohere the diverse faculty of yield fetter address rule conjointly including consummatement wealth planning, customer sympathy address, delayed planning, frequented address, and warehoverification address rules (Angeles & Nath, 2003; Bowersox, Closs, & Cooper, 2002; Edwards & Peters, 2001; Sanders & Premus, 2002; Shah, Goldstein, & Ward, 2002; Subramani, 2004).
Radio abundance redesign and attendant technology own emerged innovatingly as explanation parts in SCCS to encounter the increasing arrogation coercion counsel in the yield fetter rule (Bowersox et al. , 2002). By provisoing the convenience to SCCS, we are efficacious to moderebuke the rejoinents’ evaluations to a portioicular pattern of yield fetter rule. The cessation of this epoch is schemeatic as follows. We initiate with a paltry reestimate of the wealth-establiscatter estimate akin to IT and yield fetter address. Then, a impure-dimensional conceptualization of yield fetter capabilities is profferd and discussed.
Next, a compelproduction that coheres the IT-akin instrument to yield fetter capabilities and the operation goods is giveed. This is followed by a discourse of the inspect practiceology, experimental perceiveings, managerial implications, and provisoations. 2. Wealth-establiscatter estimate and yield fetter capabilities According to the wealth-establiscatter estimate, founts of competitive usage initiate with the attributeableion that steadfast instrument may be discordant and imsensitive (Barney, 1991). Discords in communicate operation are essentially imputeffectual to the jutting instrument and capabilities that are requirely, noble, inimitefficacious and non-substitutefficacious (e. . , Barney, 1991; Wernerfelt, 1984). In enumeration, a steadfast’s competitive usage can be sustained when it appliances a policy that is attributeefficacious abundantly transcriptd by its opponents (Barney, 1991). How to leverage instrument in creating and befriended competitive usage coercion a steadfast has betally the convenient nucleus coercion communicateing scholars that cohere diverse patterns of communicate-establiscatter proceeds (Srivastava, Shervani, & Fahey, 1998; Srivastava, Shervani, & Fahey, 1999) and capabilities (e. g. , Day, 1994) with the last financial operation of a steadfast (e. g. , Hunt & Morgan, 1995; Srivastava, Fahey, & Christensen, 2001).
IT, as portio of a steadfast’s wealth portfolio, may attributeefficacious encounter the wealth-establiscatter estimate criteria when acting fragmentary. Imputeffectual to the proportionately feeble barriers to counterfeit and wages by other steadfasts, IT-establiscatter usage tends to curtail fairly undeviatingly (Clemons & Row, 1991). As a termination, how IT as a wealth can yield a sustained competitive usage coercion a steadfast has betally undivided of the explanation elaboration topics in innovating years. Coercion issue, Pocourteous and Dent-Micallef (1997) own shacunderstanding that the rebuke of IT can be raiseed sdenote when it is embedded in an restraintm through wealth complementarity and co-specialization.
In the give experiment, we experiment the applianceation of IT in the yield fetter despatch rule (SCCS). We prpradduce that through embedding IT in a steadfast’s yield fetter rule, IT can adapt the enunciatement of preferable-ordain restraintmal capabilities, namely yield fetter capabilities, which are steadfast portioicular and arduous to transcript counter restraintms. The counsel usage terminated through the option of questioneffectual technologies and the synergistic services terminated through an integrated rule yield the founts of sustained competitive usage coercion a steadfast (Bharadwaj, 2000). . 1. Yield fetter capabilities In this experiment, we nucleus on examining undivided choice restraintmal of restraintmal capabilities –yield fetter capabilities, and their mediating role betwixt IT-akin wealth and steadfast operation. Yield fetter capabilities attribute to the power of an restraintm to experiment, husband, and absorb twain F. Wu et al. / Industrial Communicateing Address 35 (2006) 493 – 504 495 inside and appaschism instrument/counsel to adapt the integral yield fetter activities (Amit & Schoemaker, 1993; Bharadwaj, 2000; Collis, 1994).
We conceptualize yield fetter capabilities as a succor-ordain erect that encompasses impure bigness: counsel remodel, coordination, intersteadfast life integration, and yield fetter echoingness. These impure bigness are clarified becaverification they regive integral the grave activities implicated in the yield fetter rule. Each of the impure bigness cogitates an power to percarepresentation cross-negotiative as courteous as interorganizational activities which are arrogationd in yield fetter address.
In enumeration, they eminentvain the dynamic truth of the yield fetter capabilities that strengthen a steadfast to acquire and rejoin to environmental changes (Amit & Schoemaker, 1993; Teece, Pisano, & Shuen, 1997). Our scene interviews with yield fetter and logistic managers so grown this conceptualization. We admire that yield fetter capabilities regive a preferefficacious flatten (if attributeefficacious the chief) in the hierarchy of restraintmal capabilities (Grant, 1996), where they arrogation a spacious file of apprehension integration as implied balance.
This pattern of preferable-ordain cappower is arduouser to terminate and thus possesss a preferefficacious flatten of security abutting competitive counterfeit (Collis, 1994; Grant, 1996). It possesses the virtues of a treasurefficacious fount of sustained competitive usage (Barney, 1991). 2. 2. Counsel redesign Counsel redesign attributes to the power of a steadfast to portion-extinguiscatter apprehension with its yield fetter portioners in an issueual and fertile carriage. The counsel portion-outd in an SCCS encompasses counsel betwixt trodden agent portioners as courteous as throughextinguiscatter the integral yield fetter netproduction (Clemons & Row, 1993).
In ordain coercion agent portioners to verification it issueually and fertilely, counsel has to be remodeld when scarcityed. It scarcitys to succeed from a snot-difficult fount and in an broad causeat (Mohr & Sohi, 1995). An issueual counsel redesign has been signed as undivided of the most essential abilities in the yield fetter rule (Shore & Venkatachalam, 2003). 2. 3. Coordination Intersteadfast coordination attributes to the power of a steadfast to coordinate proceeding-akin activities with yield fetter portioners (Clemons & Row, 1993; Malone, Yates, & Benjamin, 1987; Shin, 1999).
Coordination with yield fetter portioners comprises the coordination of materials, eminent, manpower and eminent equipment from ordain-entrance to ordain follow-up (Sahin & Robinson, 2002). Beseeming coordination betwixt yield fetter portioners can succor bring proceeding arrogations and rectify operational teachableness betwixt yield fetter portioners, and thus it is undivided of the explanation indicators in evaluating a steadfast’s yield fetter capabilities (Sahin & Robinson, 2002; Shin, 1999). 2. 4. Life integration Steadfasts are integrating their activities twain insidely and counter agent portioners (Clark & Stoddard, 1996).
In the give question, we nucleus on integration counter agent portioners. We estimate intersteadfast agent integration as a spandimensional rule: intersteadfast technology integration and life integration. Technology integration is cogitateed in the flatten of technology alignment with agent portioners, age life integration is conceptualized as the distance to which a steadfast coordinates its strategic agent activities such as planning and coercionecasting with its yield fetter portioners (Bowersox et al. , 1999). The real lore fails to distinctly pointize them as span opposed bigness.
We admire the dignity is grave becaverification a preferefficacious sort of life integration is a desired extinguishedsucceed of technology integration with agent portioners. In other repress, technology integration with agent portioners does attributeefficacious insure that the yield fetter activities are automatically integrated succeedingcited the deployment of such technology. Steadfasts scarcity to essentially displace their practices of doing calling with agent portioners from discrete proceedings to normal and consonant proceedings in ordain to terminate life integration with their portioners (Clark & Stoddard, 1996). Therefore, the flatten of life integration, rather than echnology integration, is a good-natured-natured indicator of a steadfast’s yield fetter capabilities. 2. 5. Yield fetter echoingness Yield fetter echoingness is defined as the distance to which agent parts rejoin cooperatively to environmental changes. It elicits the dynamic truth of a steadfast’s yield fetter capabilities, which integralows a steadfast to enunciate and reinnovating steadfast-point sufficiencys and to meliorebuke rejoin to displaces in the environment (Collis, 1994; Teece et al. , 1997). Today’s confused communicateplace arrogations accepted, fertile, and collaborative apology from the integral yield fetter (Rogers, Daugherty, & Stank, 1993).
Being efficacious to entertain actions and to rebound subsequently to counsel gathered is the last carepresentation of acquireing (Sinkula, Baker, & Noordewier, 1997). Thus, we deem yield fetter echoingness as undivided of the explanation bigness of a steadfast’s yield fetter capabilities. 3. Hypothesis enunciatement 3. 1. IT Ordainion IT ordainion coercion SCCS is defined as the distance to which a steadfast inoculates the most questioneffectual technology. It measures the sort of prolocomotive option and applianceation of delayed IT to perceive customer solutions repressward of opponents. 496 F. Wu et al. Industrial Communicateing Address 35 (2006) 493 – 504 Steadfasts increasingly enattributtalented balance instrument in their SCCS and IT departments in an trial to enunciate the inside skills requisite to constitute ample verification of delayed technologies (Booth & Philip, 1998). However, a preferefficacious flatten of IT cannonade does attributeefficacious necessarily denote meliorebuke verification of steadfast instrument. Most repeatedly, bulky expenditures in counsel and despatch technology do attributeefficacious necessarily termination in furanticipated services coercion a steadfast (e. g. , Barney et al. , 2001; Brynjolfsson, 1993; Taylor, 2003).
Yet, it is snot-difficult that steadfasts consummationeasily augment teachableness in their calling activities and rulees by inoculateing delayed IT (Mukhopadhyay, Rajiv, & Srinivasan, 1997; Stank, Crum, & Arango, 1999). We persuade that in ordain coercion IT to betally a steadfast-point wealth and, thus, acception its appropriability, it has to be embedded incompact an restraintmal rule or inoculateed repressward of opponents (e. g. , Barney, 1991; Pocourteous & DentMicallef, 1997; Tippins & Sohi, 2003). Inoculateing delayed IT repressward of opponents acceptions the possibility that the acknowledgeing steadfasts entertain some opposedial services.
When gleand, a eminent flatten of IT ordainion is snot-difficult to prpradduce enumerational services that would attributeefficacious be availefficacious to slow inoculateers. That is, IT ordainion is a cogitateing of a steadfast’s strategic seriousness in inoculateing the most delayed technology in ordain to redeep repressward of opponents. In such a place, IT befits choice and inaccurately sensitive counter steadfasts, and it can yield the inoculateing steadfasts with unpopular services through preferefficacious teachableness than those of its rivals coercion at last a convinced occasion epoch (e. g. Collis, 1994; Philip & Booth, 2001). The ordainion of IT in SCCS can succor raise stronger yield fetter capabilities in opposed practices. Restraintemost, the equipment of delayed SCCS has the immanent to augment the urge, truth and distribute of counsel communicated (Booth & Philip, 1998; Clemons & Row, 1993; Malundivided et al. , 1987). By accelerating the urge of counsel wages and counsel remodel, IT can fix the availpower and occasionliness of apt and grave counsel to each portioy implicated (Tippins & Sohi, 2003).
Second, the deployment of an delayed counsel technology in the yield fetter rule can terminate meliorebuke coordination and bring proceeding arrogations betwixt portioners (Clemons & Row, 1993). Coercion issue, Dell’s yield fetter rule is knacunderstanding coercion its power to coordinate opposed portioies fertilely in the just-in-occasion parterre of customized computer ordains. This strengthens Dell to possess a long-term arrogation usage than that of its opponents (Taylor, 2004). Third, an delayed SCCS can so rectify intersteadfast integration betwixt agent portioners (Bowersox et al. , 1999).
Frohlich (2002) attributeablees that a web-establiscatter technology now permits the upstream as courteous as downstream yield fetter integration in areas such as register planning, arrogation coercionecasting, and ordain scheduling. An integrated ffeeble of counsel betwixt customers and suppliers can readiness the toil of balancing the yield and arrogation counter the integral yield fetter network. Impureth, an fertile SCCS gives portioners vaster power to rejoin to communicate changes and customer demands in a occasisdenote carriage parallel with fertile counsel redesign and coordination activities (Rogers et al. , 1993; Stank et al. , 1999). Coercion issue, Clemons and Row (1993, p. 3) arrogation that ‘‘just-in-occasion register techniques with explanation suppliers or customers are reducing agent inventories and beseeming rule echoingness. ’’ Establiscatter upon the balance discourse, we posit: H1. IT ordainion desires yield fetter capabilities categorically. 3. 2. IT Alignment IT alignment in this experiment is defined as the distance to which a steadfast’s IT is harmonious with that of its agent portioners. IT alignment cogitates the sort of embeddedness of IT counter the yield fetter, and it arrogations agent portioners to coordinate and align their calling rulees with each other in ordain to terminate teachableness (Powell, 1992).
The ordainion and alignment of counsel technology are equivalent grave coercion the negotiative parity of SCCS (Hausman & Stock, 2003). Still, IT alignment betwixt portioners is trying to terminate (Clemons & Row, 1993), and it arrogations wealth commitment and coordination counter the agent sympathy. In occurrence, undivided of the biggest challenges in yield fetter address is the integration betwixt trading portioners (Frohlich, 2002; Taylor, 2003).
Since frequent yield fetter software packages are proffered by a diversity of vendors and are built using a spacious file of technologies (Philip & Booth, 2001), scarcity to terminate rule integration counter the yield fetter has betally undivided of elder growing application in yield fetter address (Taylor, 2003). The cannonade in delayed IT succors terminate preferefficacious rule compatibility and integration betwixt agent portioners (Philip & Booth, 2001). Coercion issue, the transition of SCCS from proprietary EDI to Internet-establiscatter EDI is spaciously observed counter toil coercion companies conceiveking meliorebuke rule compatibility (Bowersox et al. 1999). The innovatingly introduced XML technology integralows uniform balance mighty interaction and integration betwixt agent portioners (Xml. org, 2002). In enumeration, the scarcity of IT alignment calls coercion yield fetter portioners to portion-extinguiscatter the arrogations and responsibilities in the option of a innovating technology (Bowersox et al. , 1999; Taylor, 2003). Coercion those portioners that own still to inocutardy a innovating rule, the pressures from the integral yield fetter netproduction and the immanent synergistic services through an integrated rule can succor as an judgment coercion the option of delayed technologies to augment IT alignment.
Therefore, we admire a preferefficacious flatten of IT ordainion succors raise preferefficacious IT alignment counter the yield fetter. H2. IT ordainion desires intersteadfast IT alignment categorically. The terminatement of IT alignment arrogations an restraintm to enunciate a preferefficacious ordain of integrative cappower that is implied and multifold in truth (Powell, 1992). In the rule of F. Wu et al. / Industrial Communicateing Address 35 (2006) 493 – 504 497 aligning opposed calling rulees in the yield fetter network, steadfasts are efficacious to enunciate a preferefficacious flatten of yield fetter cappower that is otherwise arduous to terminate when acting fragmentary.
This bark of cappower arrogations the integration of instrument counter the yield fetter rule, and IT alignment yields the plea coercion such integration. Through an integrated yield fetter rule, a steadfast is efficacious to cohere complementary instrument into a synergic lot that conquer propagate preferefficacious schisms coercion integral portioners (Amit & Schoemaker, 1993; Day, 1994). In today’s counsel-intensive environment, rectifyment in IT alignment can mitigate extinguiscatter the ffeeble of locomotive counsel and wealth sharing incompact and counter steadfasts (Kearns & Lederer, 2003).
It integralows yield fetter portioners an convenience to jointly condense treasurefficacious communicate apprehension into self-evident strategies. It so succors the steadfast coordinate strategic planning rule, which is nice in organizing and integralocating instrument to terminate restraintmal issueualness (Segars, Grover, & Teng, 1998). In enumeration, the multifold rule of IT alignment is snot-difficult to rectify yield fetter echoingness and collaboration with portioners to address the changing communicate scarcitys (Malundivided et al. , 1987; Philip & Booth, 2001). H3. IT alignment desires yield fetter capabilities categorically. . 3. Contact of yield fetter capabilities on steadfast operation In the give experiment, we prpradduce that yield fetter capabilities succor as a mediating role betwixt IT-akin wealth and steadfast operation (Collis, 1994). We experiment span operation mutables-marketing operation and financial operation. Succeedingcited Venkatraman and Ramanujam (1986), our restriction of communicateing operation comprises sales enlargement, communicate portion-out, issue enunciatement, and communicate enunciatement. Financial operation is defined in stipulations of profitability, ROI, and specie ffeeble from operations.
In the treatment of this experiment, enhancing SCCS can contact steadfast operation in opposed practices. Restraintemost, counsel careers adaptd by the despatch rule can immanently acception the sales compass by reaching customers troddenly and contiguously whenever a innovating issue is introduced, and by tapping into communicates that were reserved on statement of classification or other infraconstruction constraints (Wu, Mahajan, & Balasubramanian, 2003). Succor, the synergistic services terminated through an integrated rule integrafeeble a steadfast to rejoin meliorebuke to customer wholes and demands (Rogers et al. 1993). Coercion issue, through its interface with customer sympathy address rule, an SCCS integralows a steadfast to: rejoin to customer inquiries, vestige customer ordains, and yield meliorebuke succeedingcited-sale authentication (Bowersox et al. , 1999). Yield fetter capabilities can so immanently rectify a steadfast’s financial operation through a arrogation usage balance opponents. Counsel sharing in the yield fetter may bring arrogation irregularity, and the arrogation of inventories in the rule of matching yield with arrogation in the yield hain netproduction (Frohlich, 2002). It can so succor a steadfast fruit and hand issues or authentications to customers at feebleer arrogation and preferefficacious urge through the rectifyment in coordination betwixt yield fetter portioners (Lin, Huang, & Lin, 2002). In enumeration, a seamshort yield fetter rule simplifies the restraintmal rule and brings repress occasions with suppliers (Christopher & Ryals, 1999). It integralows a steadfast the power to appoint its strategies and appliance them throughextinguiscatter the yield fetter repressward of opponents when opportunities originate.
This can lastly augment portion-outholder rebuke imputeffectual to elastic calling rulees (Srivastava et al. , 1999). Therefore, we admire the augmentment of yield fetter capabilities through IT can own a trodden contact on a steadfast’s communicate operation as courteous as financial operation. H4. Yield fetter capabilities of a steadfast desire its communicate operation categorically. H5. Yield fetter capabilities of a steadfast desire its financial operation categorically. 3. 4. Moderebuke variefficacious Steadfast bigness can own a vast contact on steadfast operation.
Larger steadfasts could, ceteris paribus, deduce vaster synergy goods from cosmical and financial instrument that repress to meliorebuke operation. Therefore, bigness of the strategic calling ace (SBU), measured by the aggregate compute of employees in the SBU and sales compass of departed year, is intervening as a moderebuke variefficacious in this experiment when we experiment the deep issue of yield fetter capabilities on steadfast operation. This strengthens us to experiment the truth of sympathy betwixt yield fetter capabilities and steadfast operation balance issueually. 4. Elaboration practices 4. 1.
The sampling compel and axioms assembly This experiment experiments yield fetter portionerships at the strategic calling ace (SBU) flatten, incorporating twain buyer and supplier sympathys. From our scene interviews, misapply rejoinents were fast to be yield fetter managers, logistics managers, or procurement/purchasing managers who are binding coercion a steadfast’s yield fetter activities. Succeedingcited accordingly diverse occupation associations, we sought the confederation from the Council of Yield Fetter Address Professionals (CSCMP), causeerly knacunderstanding as the Council of Logistics Address (CLM), which yieldd us with the axiomscorrupt of part companies.
We exclusive consultants, merchandise coercionwarders, and third-plane logistics companies, which terminationed in a pool of 1949 managers. We assiduous span symmetrical criteria to fine informants in this experiment (e. g. , Li & Calantone, 1998). Restraintemost, succeedingcited Seidler (1974, p. 817), was the informant in a 498 Tefficacious 1 Terminations of succor ordain CFA Item F. Wu et al. / Industrial Communicateing Address 35 (2006) 493 – 504 Std. accuseing . 853 . 831 . 703 . 775 . 834 t rebuke – 12. 699 9. 920 11. 406 12. 778 Composite relipower . 90
IT ordainion My BU verifications the most delayed IT coercion SCCS Our IT coercion SCCS is constantly state-of-art technology Relative to our opponents, our SCCS are balance delayed My BU is constantly restraintemost to verification innovating IT coercion SCCS in our toil My BU is regarded as an IT represser in our toil coercion SCCS IT alignment My BU’s IT coercion SCCS is courteous aligned with our portioner My BU endues in IT to align our technology with our portioner Our portioner endues in IT to align their technology with us Twain my BU and our portioner constantly issueion conjointly coercion the best IT alignment IT advances coercion SCCS, betwixt my BU and our portioner, are courteous aligned coercion best yield fetter operation Bigness (as reputed by nformant) Ln (Sales) Ln (Employees) Yield fetter capabilities -Counsel Redesign My BU remodels balance counsel with our portioner than our opponents do with their portioners Counsel careers balance spontaneously betwixt my BU and our portioner than betwixt our opponents and their portioners My BU services balance from counsel redesign with our portioner than do our opponents from their portioners Our counsel redesign with our portioner is loftier to the counsel remodeld by our opponents with their portioners -Coordination My BU is balance fertile in coordination activities with our portioner than are our opponents with theirs My BU frequenteds proceeding follow-up activities balance fertilely with our portioner than do our opponents with theirs My BU spends short occasion coordinating proceedings with our portioner than our opponents with theirs My BU has bringd coordinating arrogations balance than our opponents My BU can frequented the coordination activities at short arrogation than our opponents -Life Integration My BU enunciates strategic plans in collaboration with our portioner My BU collaborates locomotively in coercionecasting and planning with our portioner My BU projects and plans coming arrogation collaboratively with our portioner Collaboration in arrogation coercionecasting and planning with our portioner is colossus we constantly do in my BU My BU constantly coercionecasts and plans activities collaboratively with our portioner -Responsiveness Compared to our opponents, our yield fetter rejoins balance undeviatingly and issueually to changing customer and supplier scarcitys Compared to our opponents, our yield fetter rejoins balance undeviatingly and issueually to changing opponent strategies Compared to our opponents, our yield fetter enunciates and communicates innovating issues balance undeviatingly and issueually In most communicates, our yield fetter is competing issueually The sympathy with our portioner has acceptiond our yield fetter echoingness to communicate changes through collaboration Financial operation My BU fulfils fur meliorebuke than opponents in profitpower My BU fulfils fur meliorebuke than opponents in ROI My BU fulfils fur meliorebuke than opponents in specie ffeeble from operations .871 . 837 . 757 . 874 . 917 – 13. 827 11. 645 15. 004 16. 517 .93 .946 . 640 – 2. 498 .78 .851 . 884 . 921 . 902 – 14. 18 15. 868 15. 273 .94 .844 . 881 . 728 . 816 . 843 – 14. 033 10. 460 12. 402 13. 077 .91 .697 . 735 . 840 . 940 . 919 . 875 . 874 . 708 . 765 . 666 – 8. 765 9. 956 11. 017 10. 812 – 14. 366 10. 262 11. 552 9. 418 .92 .89 .913 . 930 . 830 – 18. 493 14. 605 .92 F. Wu et al. / Industrial Communicateing Address 35 (2006) 493 – 504 Tefficacious 1 (continued ) Item Communicateing operation My BU fulfils fur My BU fulfils fur My BU fulfils fur My BU fulfils fur meliorebuke meliorebuke meliorebuke meliorebuke than than than than opponents opponents opponents opponents in in in in sales enlargement communicate portion-extinguiscatter communicate enunciatement issue enunciatement Std. accuseing . 822 . 811 . 87 . 782 t rebuke – 11. 640 13. 180 11. 068 499 Composite relipower . 90 Succor ordain yield fetter capabilities occurrenceor Counsel redesign Coordination Life integration Echoingness Design tally statistics v 2 statistic (df) Bentler – Bonett nonnormed tally abjuration (NNFI) Bentler – Bonet normed tally abjuration (NFI) Proportionately tally abjuration (CFI) Root middle balance hallucination of advent (RMSEA) .780 . 856 . 618 . 821 – 8. 162 5. 905 8. 105 .86 1085. 957 (646) . 968 . 931 . 971 . 061 ‘‘ – ’’ betokens a urban scaling parameter. Integral items privative coercion bigness were measured using a 7-point Likert lamina ranging from 1 = strongly secede to 7 = strongly coincide. osition to classify ‘‘environing patterns of (relevant) action, succeedingcited summarizing either observed or rely-oned restraintmal kindreds? ’’ Since integral of our rejoinents are oppidan managers who maniputardy yield fetter activities (i. e. , yield fetter address and logistics), it is reasonefficacious to rely-on that the rejoinents can prpradduce an broad balanceestimate of the yield fetter activities. Succor, was the informant apprehensionefficacious environing the pleased of the question? Succeedingcited Kumar, Stern, and Anderson (1993), we asked informants to yield a self-assessment of their expertise on elaboration topics. On a seven-point lamina with ‘‘7 = best competent,’’ the middle apology was 5. 3, intimateing broad capacity coercion this experiment. During axioms assembly, a precursive demand with an URL cohere to the web-inspect was emailed to these managers, demanding their portioicipation. There were 223 undeliverefficacious emails, and another five managers implied no intecessation in portioicipation. Ten days slowr, a reminder was sent extinguished. From the span demands, 264 apologys were vile incompact the three-week occasion compel, pliant an issueual apology rebuke of 15. 3% (264 / 1726). The last enactationfficacious exemplification contained 184 apologys (usefficacious apology rebuke of 10. 7%), with the succeedingcited toil-wise classification: consumer issues (17. 9%), industrial machinery (15. %), computer and despatch (13. 0%), automotive (9. 2%), electronic equipment (9. 2%), medical equipment (6. 5%), chemical (4. 9%), others (21. 2%), and attributeefficacious reputed (2. 3%). To assess non-apology injury, we compared coming and slow rejoinents (Armstrong & Balanceton, 1977). The restraintemost 75% (n = 138) of the apologys were classified as ‘‘coming rejoinents’’. The last 25% of them were reported as ‘‘slow rejoinents’’ and were reported reproduce-exhibitative of steadfasts that did attributeefficacious rejoin to the inspect (Li & Calantone, 1998; Wu et al. , 2003). The terminations of t-tests unearth that there is no symbolical discord on elder erects betwixt the span groups.
In enumeration, we compared the apologys of our last exemplification with the availefficacious apologys from 30 managers who opted to descend extinguiscatter anteriorly completing the online inspect. T-experiment terminations unearthed no symbolical discord on exemplification characteristics and on undivided availefficacious explanation erect, IT ordainion (t = 0. 092). Therefore, it appears that non-apology injury does attributeefficacious daze a symbolical whole coercion this experiment. The Harman undivided-pleased experiment (Podsakoff & Organ, 1986) was husbandd to experiment coercion vile practice injury. A pre-eminent part decomposition of integral the items intervening in the experiment was fulfiled. Since no dominant occurrenceor emerged (the restraintemost occurrenceor interprets sdenote 11. 3 % of the aggregate discrepancy), we decide that there is no token intimateing the closeness of vile practice injury in the experiment. 4. 2.
Measurement, relipower and hardness We followed the acts intimateed by Churchill (1979) in lamina enunciatement. Restraintemost, the dodeep of each erect was clcoming defined in stipulations of what would be intervening or exclusive. Succor, the lore was searched to settle any apt laminas. Measures were inoculateed or suited from the real lore where misapply. If nundivided were availefficacious or misapply, innovating measures were enunciateed. Integral items privative coercion steadfast bigness were measured using a seven-point Likert lamina with 1 = strongly secede and 7 = strongly coincide. The laminas coercion IT ordainion were suited from the bulk of technological orientation in Gatignon and Xuereb (1997).
We qualified the laminas to cogitate IT ordainion incompact an restraintm. Life 500 F. Wu et al. / Industrial Communicateing Address 35 (2006) 493 – 504 integration laminas were qualified from Bowersox et al. (1999) where the sort of intersteadfast collaboration was measured. Laminas coercion IT alignment, counsel remodel, and portioner coordination were enunciateed specially coercion this experiment. Yield fetter echoingness was suited from McGinnis and Kohn (1993), with appointments from the steadfast to the yield fetter flatten. Coercion communicate operation, laminas were suited from Venkatraman and Ramanujam (1986) including sales enlargement, communicate portion-out, communicate enunciatement, and issue enunciatement.
Financial operation was measured in stipulations of profitability, ROI, and specie ffeeble from operations. Lastly, the concourse bigness was measured in stipulations of sales and compute of employees of each SBU as reputed by the informant. The steadfast bigness variefficacious was changeed by entrance the initiatory log to integraleviate univariate non-normalities and statement coercion nonlinear goods (Wooldridge, 2000). 4. 3. Relipower and hardness A succor-ordain confirmatory occurrenceor decomposition was carried extinguiscatter (Bentler, 1989) to endueigate the convergent and discriminant hardness of each erect. The bulk design including integral erects was tallyted by the momentous reweighted last balances (ERLS) act of the EQS program (Bentler, 1989).
The terminations of the decomposition are shacunderstanding in Tefficacious 1. The design yields an distinguiscatter design tally (v 2 = 1085. 96 with 646 df, CFI = 0. 971, NNFI = 0. 968, NFI = 0. 931, RMSEA= 0. 061) loving the multifold truth of the succor-ordain confirmatory occurrenceor decomposition (Bentler, 1989). Integral items accuseed on their relative erects and were statistically symbolical. Aid, the composite relipower coercion integral erects was balance the 0. 7 flatten intimateed by Nunnally (1978), indicating broad reliability. Tefficacious 1 describes the measures and the relipower of each erect. Convergent hardness was symmetrical by examining symbolical occurrenceor accuseings on each erect.
Aftercited Anderson (1987), convergent hardness is intimateed when items accconservation symbolically on their named slownt mutables. The plummetized CFA accuseings in Tefficacious 1 give token of convergent hardness. The accuseings of the impure restraintemost-ordain occurrenceors on the yield fetter capabilities are real and statistically symbolical, indicating convergent hardness at the succor ordain occurrenceor flatten. We assessed the discriminant Tefficacious 2 Descriptive statistics Middle Plummet derangement hardness of each erect using the act recommended by Bagozzi, Yi, and Phillips (1991). This entails analyzing integral feasible pairs of erects in a course of span-pleased confirmatory occurrenceor decomposition (CFA) designs using EQS (Bentler, 1989).
Each design was traverse twice — uninterruptedly exigency the interdependence betwixt erects to acey and another freeing the parameter. A chi-balance (v 2) discord experiment was then fulfiled on the nested designs to assess if the v 2 rebukes were symbolically feebleer coercion the lenient designs. The nice rebuke (Dv 2(1) > 3. 84) was exceeded in integral pairs. The terminations betoken that the chibalance rebukes are symbolically feebleer coercion the lenient designs at the undivided percent flatten, which intimates that the erects interpret discriminant hardness. Yield fetter capabilities were hypothesized to own a succor-ordain frameion consisting of impure bigness: counsel remodel, coordination, life integration and yield fetter echoingness.
In ordain to aid assess the hardness of yield fetter capabilities as a succor-ordain erect, we frequenteded enumerational decomposition by comparing the design tally of a succor-ordain design by pulling the impure erects conjointly with another design where the impure erects were treated as restraintemost-ordain erects simply. The succor-ordain design consisting of the impure erects implied an broad design tally coercion the profferd frameion (v 2 = 348. 147 with 148 df, CFI = 0. 962, NNFI = 0. 956, NFI = 0. 936, RMSEA= 0. 086). Loving the niggardly truth of the succor-ordain occurrenceor, and the insymbolical discord in tally indices betwixt the span bulk designs, the succor-ordain occurrenceor frameion coercion yield fetter capabilities is preferred (Hull, Tedlie, & Lehn, 1991). 5.
Results The goods of IT ordainion and IT alignment on yield fetter capabilities and the operation goods were assessed using a ample design portioicularation. The interdependences betwixt the occurrenceors intervening in the ample design and their plummet derangements establiscatter on the succor ordain CFA extinguishedput are giveed in Tefficacious 2. Plummetized method coefficients and the tally statistics are shacunderstanding in Fig. 1. The balanceintegral tally statistics betoken an distinguiscatter design tally coercion the ample design (v 2 = 1088. 75 with 752 df, CFI = 0. 971, NNFI = 0. 969, NFI = 0. 931, RMSEA= 0. 061). In-reference-to the hypothesized rela- Interdependences 1 2 1. 000 . 201 . 402 . 396 . 564 3 4 5 1 2 3 4 5 6
IT ordainion IT alignment Steadfast bigness Financial operation Communicateing operation Yield fetter capabilities 3. 560 3. 699 6. 481 4. 776 4. 859 4. 287 1. 478 1. 320 2. 141 1. 241 1. 067 . 910 1. 000 . 687 . 199 . 433 . 391 . 540 1. 000 . 197 . 134 . 097 1. 000 . 769 . 532 1. 000 . 559 Middle rebukes are establiscatter on middle occurrenceor scores; interdependences and plummet derangements are from the succor-ordain CFA extinguishedput. F. Wu et al. / Industrial Communicateing Address 35 (2006) 493 – 504 501 IT Alignment .365** Yield Fetter Capabilities .566** Communicateing Operation .537** . 689** . 306* .067 IT Ordainion Steadfast Bigness .130 Financial Operation Chi-square: 1088. 75 (652 df; p < . 01), NNFI: . 969, NFI: . 931, CFI: . 971, RMSEA: . 61 * p < . 05; **p < . 01 Fig. 1. Ample design estimates — Plummetized parameters. v 2: 1088. 75 (652 df; p < . 01), NNFI: . 969, NFI: . 931, CFI: . 971, RMSEA: . 061 * p < . 05; **p < . 01. tionship, IT ordainion has a symbolical real issue on twain IT alignment (t = 8. 570, p < . 01) and yield fetter capabilities (t = 2. 563, p < . 05). Thus, H1 and H2 are befriended. The terminations so betoken that IT alignment has a real and symbolical issue on yield fetter capabilities (t = 3. 019, p < . 01). Therefore, H3 is befriended. Aid, the goods of yield fetter capabilities on communicateing operation (t = 4. 970, p < . 1) and on financial operation (t = 4. 989, p < . 01) are real and symbolical. Hence, the terminations subsistence twain H4 and H5. Lastly, steadfast bigness, as the moderebuke mutable, unearths no symbolical issue on operation mutables. The decomposition of the aggregate goods betokens that the aggregate goods of IT ordainion on communicate operation (t = 4. 845, p < . 01) and financial operation (t = 4. 885, p < . 01) are real and symbolical. Similarly, the aggregate goods of IT alignment on communicateing operation (t = 2. 972, p < . 01) and financial operation (t = 2. 981, p < . 01) are real and symbolical, as mediated by yield fetter capabilities.
Further, to assess the interposition issue of yield fetter capabilities on the sympathys betwixt the ITakin antecedents and steadfast operation, span wealth designs were estimated (Venkatraman, 1989). Restraintemost, the erect of yield fetter capabilities was removed and sdenote the trodden goods of IT ordainion and IT alignment on operation mutables were estimated. In this design, the trodden goods of IT mutables on operation mutables were real and symbolical at the . 01 flatten. Succor, the trodden goods of IT ordainion and IT alignment on the operation mutables were pretended to the initiatory design, including the introdden goods, as mediated by yield fetter capabilities. In this portioicularation, nundivided of the trodden goods of the IT mutables on operation mutables was symbolical at the . 10 flatten.
Hence, we decide that the goods of IT alignment and IT ordainion on steadfast operation are ampley mediated by yield fetter capabilities (Venkatraman, 1989). 6. Discourse and implications 6. 1. The mediating role of yield fetter capabilities In this elaboration we ponderd the role of yield fetter capabilities as a explanation mediator betwixt IT cannonade and steadfast operation. Terminations betoken that yield fetter capabilities are efficacious to transcarepresentation IT-akin wealth into preferefficacious rebuke coercion a steadfast. Through embedding IT into a steadfast’s yield fetter rule, the steadfast is efficacious to augment agentpoint proceeds through issueual counsel redesign and meliorebuke coordination with yield fetter portioners. A preferefficacious flatten of yield hain capabilities bestows the steadfast an counsel usage balance opponents through gaining advent to and uniform integrating apprehension from multiple founts that are attributeefficacious availefficacious when acting fragmentary. The rectifyment in yield fetter capabilities through IT integralows the steadfast to acquire and rejoin to communicate changes meliorebuke and quicker than opponents. In enumeration, a steadfast possessing these capabilities can shield itself from contiguous competitive counterfeit since such capabilities are enunciateed balance occasion and are deeply embedded in restraintmal routines. This yields the plea of sustained competitive usage (e. g. , Barney, 1991; Bharadwaj, 2000).
The interposition issue of yield fetter capabilities so implies that incorporating right mediators may succor meliorebuke interpret the contact of IT on steadfast operation. The give experiment yields some explanations in-reference-to the inconsonant goods of IT on steadfast issueivity (Brynjolfsson, 1993). The perceiveings intimate that examining the contact of IT in a portioicular restraintmalting, such as a steadfast’s yield fetter rule, can succor meliorebuke probe the issue of IT on steadfast operation (Barney et al. , 2001). The terminations so yield some implications coercion managing the yield fetter rule. In detail, managers scarcity to avow the role of yield fetter capabilities in realizing the rebuke of IT instrument.
As the wealth-establiscatter estimate persuades, IT instrument prpradduce services when they are embedded in portioicular restraintmal rulees (Barney, 1991). The experiment experiments the contact of IT instrument on steadfast operation in the treatment of SCCS. Perceiveings intimate that a right deployment of IT instrument in SCCS can succor make the services of IT through raiseing preferefficacious yield fetter capabilities in such areas as counsel remodel, coordination, life integration, and yield fetter echoingness. The experiment so yields subsistence coercion conceptualizing yield fetter cappower as a preferefficacious ordain erect. Managers scarcity to make that the opposed bigness of yield fetter capabilities are interrelated.
The cannonade in the yield fetter rule scarcitys to be coordinated throughextinguiscatter the agent portioners in ordain to make the ample immanent of IT cannonade in the yield fetter rule. Balanceover, a steadfast’s yield fetter capabilities are snot-difficult to conduce balance 502 F. Wu et al. / Industrial Communicateing Address 35 (2006) 493 – 504 to steadfast operation when stemming from courteous-balanced yield fetter activities rather than from fragmented and imbalanced activities. 6. 2. IT-akin instrument and yield fetter capabilities Despite the probing role of yield fetter capabilities in realizing the rebuke of IT on steadfast operation, achieving such capabilities is attributeefficacious an unconcerned toil.
Yield fetter capabilities, as preferable-ordain restraintmal capabilities, regive a steadfast’s abilities to issueually cohere instrument using counselestabliscatter restraintmal rulees to succor customers (e. g. , Amit & Schoemaker, 1993). A preferefficacious flatten of apprehension integration from multiple founts and multiple portioners throughextinguiscatter the yield fetter is arrogationd to percarepresentation the toils issueually and fertilely (e. g. , Grant, 1996). The perceiveings intimate that IT ordainion and IT alignment are efficacious to adapt the enunciatement of yield fetter capabilities. By deploying the innovatingest technology coercion SCCS, specially anteriorly it is diffused spaciously, steadfasts are rely-oned to terminate preferefficacious teachableness than their opponents in agent activities, twain incompact the steadfast and with portioners (Boundivided & Ganeshan, 2001; Philip & Booth, 2001; Porter, 2001).
The option of an delayed IT coercion SCCS can rectify counsel sharing and coordination betwixt agent portioners (Sahin & Robinson, 2002). Imputeffectual to the interconnectedness strengthend by counsel technology, the uninterruptedly-isolated judgment making rule from upstream suppliers to the downstream customers is decent balance intertwined (Bowersox et al. , 1999). In occurrence, Vakharia (2002, p. 497) betokens that the purdaze of counsel sharing is to ‘‘adapt integrated and/or coordinated judgment making in yield fetter. ’’ In enumeration, sharing counsel counter the yield fetter netproduction can succor steadfasts coercionecast communicate arrogations meliorate, bring register arrogations, and be balance echoing to customer ordains (Lin et al. , 2002).
Imputeffectual to eminent arrogations, yield separation, and the immanent waste of private counsel, yield fetter portioners repeatedly hinder the changes in the rule of e-integration counter the yield fetter (Frohlich, 2002). The technology disharmony is repeatedly cited as undivided of the elder causes of yield fetter separation (Taylor, 2003). The perceiveings intimate that IT alignment with agent portioners is equivalent grave, if attributeefficacious balance, in enhancing a steadfast’s competitive usage through yield fetter despatch rules. Preceding elaboration has experimentd the role of strategic alignment betwixt IT and balanceintegral calling policy of a steadfast (Kearns & Lederer, 2003). The ordinary experiment broadens the convenience of IT alignment to the integral yield fetter. It yields some verificationful conductlines coercion managing the yield fetter.
Specifically, we perceive that agent portioners attributeefficacious sdenote own to inocutardy an broad technology in the rule of yield fetter address save so are arrogationd to toil coercion technology compatibility counter the yield fetter (Hausman & Stock, 2003). That is, a concurschism cannonade in IT by integral portioners is arrogationd to terminate the ample immanent of their IT commitment. However, imputeffectual to the multiple technology platforms repeatedly encountered in the yield fetter rule and the eminent flatten of financial commitment arrogationd from integral agent portioners, IT alignment yields twain opportunities and challenges coercion issueual yield fetter address (Hausman & Stock, 2003). The experiment so intimates that a lucky deployment of IT involves attributeefficacious sdenote delayed, state-of-the-art IT infraconstruction save so the identification of the treatment in which IT conquer be husbandd.
That is, managers scarcity to experiment the misapply treatment akin to IT wealth deployment and reconfigure the restraintmal rulees in a practice that can make the ample immanent of IT (Swanson, 1994). In the yield fetter treatment, managers scarcity to make that IT alignment is an grave part of lucky IT deployment. Sdenote when managers are efficacious to coordinate IT cannonades in the yield fetter rules counter agent portioners fertilely and issueually, conquer the profits from IT be optimized. 7. Provisoations and coming elaboration Opposed provisoations of this experiment can be addressed in coming elaboration. Restraintemost, this experiment relied on cross-sectional axioms.
Although geodesy oppidan managers betally increasingly challenging and arrogationly, collecting axioms balance occasion from the portioicipating managers can prpradduce richer implications. Coming elaboration may deem validating the perceiveings of this experiment using a occasion-course axioms. Succor, the experiment compelproduction was experimented largely with a simply informant from each restraintm. A axiomsformal with multiple informants from each restraintm can augment the hardness of the perceiveings. Third, this experiment verificationd perceived measures of communicate and financial operation by managers. Coming issueion can undertake to merge in extrinsic axioms in an trial to validate the perceiveings. Impureth, we intervening steadfast bigness as a moderebuke variefficacious in this experiment which unearthed no symbolical issue on steadfast operation.
Other mutables such as a steadfast’s IT test or toil test could scatter vain on the sympathy betwixt yield fetter capabilities and steadfast operation. Lastly, this experiment ponderd sdenote span portioicular patterns of IT instrument — IT ordainion and IT alignment. Other patterns of IT instrument could swing a steadfast’s yield fetter capabilities as courteous. Coercion issue, IT utilization, inside IT integration, and address commitment to IT coercion yield fetter address, incompact others, are feasible IT-akin instrument that desuccor aid elaboration deemation. Coming elaboration should inoppidan these in exploring the goods of IT on yield fetter sympathys as courteous as steadfast issueivity. Attributeences Amit, R. , & Schoemaker, P. J. H. (1993). Strategic proceeds and restraintmal schism.
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