Demand chain management in manufacturing and services: web‐based integration, drivers and performance

Abstract This paper investigated the relationship between Internet‐enabled supply chain integration strategies and performance in manufacturing and services. It summarizes the literature on demand and supply integration and describes four web‐based strategies. A stratified random sample was collected from UK manufacturers and services, and there was strong evidence that demand chain management (DCM) led to the highest performance in manufacturing, but few signs of DCM in services. Manufacturers and services relying on only web‐based demand or supply integration outperformed their low integration counterparts, but lagged DCM in manufacturing. The study also investigated DCM adoption drivers and found that rational efficiency and bandwagon effects drove change. The findings have some important implications for theory as well as for manufacturing and service companies interested in improving their performance.