This paper presents an analysis of the impact of electronic commerce on firms in the telecommunications equipment industry.
Using the OECD's value chain methodology, electronic commerce initiatives identified in the optical connectivity value chain were analyzed for each of the four layers of the chain, namely network operators, system integrators, assemblers and sub‐assemblers.
The findings from our case studies indicate that electronic commerce initiatives primarily influence process and relational innovations through supply chain collaboration. The real benefits of electronic commerce come from end‐to‐end visibility in the supply chain, and from the implementation of demand‐pull strategies for all levels of the optical connectivity equipment value chain.
Future research should concentrate on the impact of various emerging electronic marketplaces in demand‐driven integrated supply chains.
Results reveal to managers how e‐commerce can strengthen business relationships in the supply chain and how it can trigger information visibility through collaborative electronic tools.
