Sharing Information in a High Uncertainty Environment: Lessons from the Divergent Differentiation Supply Chain

Abstract

Information sharing is one of the most important topics in supply chain management, but it is not an easy task due to the numerous challenges. This study aims to investigate how uncertainty can be reduced through the proper sharing of information, and it also endeavours to discover what factors play a key role in its success. The printed circuit board industry in Taiwan, which was chosen for this study, is a type of divergent differentiation supply chain and operates in a highly uncertain environment. The results show that trust between partners in the chain can increase information sharing while uncertainty is considered the main factor impeding it. Information sharing on such as ‘demand forecast information’ could improve the performance of order fulfilment process. Information sharing with vendor-managed inventory mechanisms could reduce supply chain uncertainty and bullwhip effects with the result that inter-organisational coordination could be strengthened.