Satisficing dependent customers-on the power of suppliers in IT systems integration supply chains.pdf

Satisficing dependent Introduction
In this article the role of satisficing end
customers: on the customers by suppliers in a relatively superior
power of suppliers in IT position of power is explained. The article
shows that many participants in the multitude
systems integration of supply chains that must be brought
supply chains together by IT systems integrators achieve
above normal levels of profitability at the
Paul Ireland expense of the end customer. While some
suppliers ± especially in the hardware supply
chains ± appear to achieve lower margins, the
research indicates that even in highly con-
tested markets suppliers can achieve above
normal profit rates. These returns appear to
be based primarily on buyer ignorance and
The author information asymmetry vis-aÁ-vis suppliers.
Paul Ireland is a Research Fellow at the Centre for
Business Strategy and Procurement, Birmingham Business
School, University of Birmingham, Birmingham, UK. Background to the IT systems
integration supply chains
Keywords
The total puter market was estimated
Supply chain, Value chain, Information technology, to be worth approximately £ in 1996
Systems integration puter services accounting for 31 per
cent of this figure. The dramatic growth in the
Abstract proportion of total IT spend accounted for by
Provides both a descriptive and an analytical under- s