University of California Transportation Center

This study examines electronic integration in logistics supply chains using the non-integrated US-international air cargo industry as a case study. We ask what impact electronic integration has on interorganizational task performance, and hypothesize about factors limiting the effectiveness of electronic integration. Surprisingly, our study does not find evidence of direct impacts of electronic integration on performance though it does find evidence of indirect impacts of information systems use and performance. The findings suggest that the use of electronic integration as a strategy to improve operational performance across firms is limited by the nature of the interorganizational task, environmental dynamism, and the power relationship between firms in the supply chain.