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Introduction Information Technology (IT) is playing an essential role in today’s competitive business environment. According to Russell & Hoag (2004) IT has a vital role in Supply Chain Management. It is advisable for the companies to adopt technological tools to gain competitive advantage (Lau et al., 2006; Porter & Millar, 1985). Adoption of IT has made a significant impact on supply chain principles, practices, and became a field of research interest for both academic and professional circles over the last decade (Shams et al., 2011). Today Information Technologies like: Information Systems (IS) and web-based technologies (WBT) have changed the way we manage information flows among supply chain stakeholders. Adoption of these technologies is most cost effective means of driving supply chain framework integration (Simatupang and Sridhara, 2005). Therefore, main challenge for the organizations is to identify main challenges faced by the organization in the adoption of the suitable technologies, this will lead to a possible solution to overcome these challenges. Identification and possible solution of the challenges can play a major role in the selection of right technology to produce productive results. This paper proposes the possible challenges in adopting the new information technological tools in the framework of supply chain in UAE and China. United Arab Emirates is considered as the hub of business in gulf region. While China is progressing fast to become the next largest economy of the world. The regional and multinational companies are trying to base in this country to control the logistics of the region. The outcome of the current study can be used in the similar markets of the region. Literature Review The importance of the supply chain is increasing very fast in all kinds of activities, including intra organizational processes and inter organizational linkages (Bowersox et al., 2000). It is base of two or more than two companies working together to get competitive advantage, which ultimately will lead the company to a shelf of higher profitability.(Simatupand and Sridharan, 2002). Linkage of the operations of the organization with different companies in the upper stream of Supply chain or with the lower stream of supply chain is not efficient without the sharing of the information efficiently. Lee and Whang (2000) reviewed the needs of proper information to the components of supply chain. This information sharing is leading them for process improvement (Lee, 2000) which is a base of productivity and value creation. Some commonly used processes in supply chain, which can be affected\improved directly from proper information sharing, are inventory management process and consumer response processes. (Barratt and Oliveira,2001). Daghfous and Barkhi (2009) also concluded possible benefits of Supply Chain processes such as: Greater control of suppliers, Process streamline, communication improvement, prompt feedback to customer, accurate forecasting, productivity enhancement, and maintaining lower inventory level. Wu, Zhao, Xia, and Zhu (2008) have studied the internal factors on IT adoption in China and concluded that factors like leadership, organizational learning, and IT resources positively impact IT adoption. Taking in mind the benefits of Information Technology (IT) adoption in the supply chain frame, the current research will try to explore the possible challenges faced during the adoption process. Highlighting of the possible challenges faced during the adoption process of the service industry can alarm the companies to prepare their mitigation strategy considering the recommendations of the current research. Outsourcing IT to China brings more opportunities in the fast-growing Chinese market. Technology services companies must pay careful attention to China’s regulations and changing technology standards and adapt their strategies accordingly. China will become the largest IT outsourcing player, and it will be to your own peril to ignore this powerful and important market (Chan, 2008). Tenth Annual International Daejeon, South Korea P a g e | 64 Smart Sourcing Conference June 28-29, 2012
Methodology To conduct the research, UAE was selected due to its business wise importance in the region. Later on, the outcomes of the research can be easily implemented in the business markets of the gulf region. A thorough review of the literature has provided a base for reframing the purpose of the research and finalizing the research questions. Motivated in identifying possible challenges faced by UAE as well as Chinese service industries in IT adoption, following three research questions were created: RQ1. What are the possible challenges of IT adoption in supply chain frame work of different categories of service Organizations? RQ2. How the size of organization is affecting the possible challenges of IT adoption of supply chain frame work? RQ3. How service organization’s span of operation is affecting the possible challenges of IT adoption in Supply chain frame work. To answer the above research questions, a proper data collection technique was required. Conclusive research technique (Joppe, 2001) was adopted in the form of an onsite questionnaire through formal interview. The data of research was collected through questionnaire consisting mainly open end questions. Managerial employees, who were responsible for the processes of supply chain or frame work of the supply chain, were interviewed during the data collection phase. Data was collected from around 140 different private and publics organizations operating in UAE and China. The selection of these organizations was a bit challenge. Many companies rejected to share their information for this research. Researchers used their connections in the industry to get the approval of collecting data. Discussion RQ.1 In order to respond to the research question number 1, the analysis was conducted on the categories level. The results of category wise analysis showed that Complexity of the current system is the major challenge in the adoption of the information technological tools in the frame work of the supply chain. Infrastructure of the company is second main challenge of majority of the categories. Further, in-depth analysis of the data showed that secondary challenges of the different categories are bit different among each other. Infrastructure of the company and lack of skilled work force are the top two secondary challenges of the Banking sector. Health care showed interesting results of their secondary challenges of IT adoption. RQ.2. To explore the answer of the research question number 2, the analysis was conducted on the size of the organization level. The results of size wise analysis showed that regardless the size of the organization complexity of the current system is the main challenge in the adoption of the information technological tools in the frame work of the supply chain. This uniform main challenge is faced by all sorts of organizations. Infrastructure is the common secondary challenge is large and small size organizations. In medium size organizations, resistance to change is the dominant secondary challenge. The ground reality in real world also supports the results. Complexity of the system is one of the major obstacles for the companies to adopt new technological tools. Companies don’t want to take risk of losing or sharing sensitive organizational data. As a result they avoid partial/full automation in the organizations. It is recommended that the organization should start making their system and process less complicated to adapt to any of the developments easily. RQ.3. Tenth Annual International Daejeon, South Korea P a g e | 65 Smart Sourcing Conference June 28-29, 2012
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2012 Global Sourcing of Services: B
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Center for Global Outsourcing Tenth
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Center for Global Outsourcing 26 Be
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Dear Conference Participants: I wou
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Center for Global Outsourcing 26 Be
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