An Analysis of the Factors Associated with Adoption of Electronic Supply Chain

Management (e-SCM) Procurement Systems Within the U.S. Automotive Industry

By

Joseph James Joyce

Dissertation

Submitted to the College of Technology

Eastern Michigan University

in partial fulfillment of the requirements

for the degree of

DOCTOR OF PHILOSOPHY

Technology

Concentration in Engineering Management

Dissertation Committee:

Dorothy McAllen, Ph.D., Chair

Alphonso Bellamy, Ph.D.

John Dugger III, Ph.D.

Huei Lee, Ph.D.

May 26, 2016

Ypsilanti, Michigan
 ProQuest Number: 10172381

All rights reserved

INFORMATION TO ALL USERS

The quality of this reproduction is dependent upon the quality of the copy submitted.

In the unlikely event that the author did not send a complete manuscript
and there are missing pages, these will be noted. Also, if material had to be removed,
a note will indicate the deletion.

ProQuest 10172381

Published by ProQuest LLC ( 2016 ). Copyright of the Dissertation is held by the Author.

All rights reserved.

This work is protected against unauthorized copying under Title 17, United States Code
Microform Edition © ProQuest LLC.

ProQuest LLC.
789 East Eisenhower Parkway
P.O. Box 1346
Ann Arbor, MI 48106 - 1346
 ii
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Dedication

To all of my family, friends, and loved ones, for those present and those who are with, and
including, my Father who art in Heaven. Thank you ever so much for your love and support,
all by which this journey has been made possible, for I am ever so blessed.

A special note to my son, Connor; please know that this Ph.D. earned by your Dad helps to
show that ANYTHING you want to accomplish is truly possible if you stay humble, always be
thankful, helpful and loving to others, and are willing to work hard enough for your goals.
Use the many gifts that God gives you, knowing that we are so very blessed in so many ways.
I love you always, Dad
 iii
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Acknowledgments

I would like to express my sincere gratitude to Dr. McAllen, chair of my dissertation

committee, for her professional support, encouragement, guidance and valuable input

throughout the dissertation process.

I would also like to thank the other dissertation committee members Dr. Dugger, Dr.

Bellamy, and Dr. Lee, for their valuable advice, support, and feedback throughout this

process.

I am grateful to all faculty members, both present and past, at the College of

Technology who have taught me throughout the Ph.D. program, both within and outside of

the classroom. I am also grateful to all of the industry participants who completed my survey

and made this study possible.

 iv
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Abstract

The U.S. automotive industry is a vitally important industry to our nation; over

7,000,000 individuals directly rely on this industry for their livelihood (Hill, K. (2014). Just

How High‐Tech is the Automotive Industry? Ann Arbor, MI: Center for Automotive

Research (CAR)). This study investigated the use of electronic supply chain management (e-

SCM) system usage within this industry and its influence on work-related procurement

outcomes. An electronic questionnaire was used to gather perceptions consistent with the

constructs of the technology acceptance model, or “TAM” (Davis, F. D. (1985). A

technology acceptance model for empirically testing new end-user information systems:

theory and results. Published Doctoral Dissertation, Massachusetts Institute of Technology,

Cambridge, MA.) It examined e-SCM systems used in the automotive industry to test

whether factors such as ease of system use (EOU) and perception of organizational

usefulness (PU) are factors in regarding a decision to use e-SCM systems within the

procurement function of their own organizations.

The results of the survey analysis showed that the perceptions of organizational

usefulness, as well as the ease of system use, are each variables affecting the final adoption

of such systems within individual organizations. Further findings showed that these

variables, along with other factors, including individual experience, educational level, and

gender, were important in predicting work outcomes within this industry, in terms of overall

results and predicting organizational decision outcomes. As such, this research offers an

understanding of the factors that are critical to achieving continued innovation and

corresponding industry success for organizations and individuals alike, transacting business

at all supply chain levels within the U.S. automotive industry.

 v
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
Further research efforts should focus on the examination of the usage of this same

model and corresponding survey instrument toward other manufacturing-based U.S.

industries (such as aerospace/defense or pharmaceutical/medical) as well as other countries’

automotive industries, such as Germany and Japan, for generalizability perspectives.

 vi
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Table of Contents

Dedication ................................................................................................................................. ii

Acknowlegments ..................................................................................................................... iii

Abstract .................................................................................................................................... iv

List of Tables ............................................................................................................................ x

List of Figures ......................................................................................................................... xii

Chapter 1: Introduction ............................................................................................................. 1

Introduction ........................................................................................................................... 1

Background ........................................................................................................................... 2

Problem Statement ................................................................................................................ 6

Nature and Significance of the Problem ............................................................................... 7

Objective of the Research ..................................................................................................... 9

Research Questions ............................................................................................................. 10

Hypotheses ........................................................................................................................ 111

Assumptions...................................................................................................................... 123

Delimitations and Limitations ............................................................................................ 13

Definition of Terms .......................................................................................................... 144

Chapter 2: Review of the Literature ....................................................................................... 19

Survey Research Methodology – Avenue for Success ....................................................... 22

TAM and Survey Research Methodology – Historical Aspects ....................................... 266

 vii
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
Extrapolation of TAM ...................................................................................................... 311

The US Automotive Industry – A Positive Trend .............................................................. 34

Chapter 3: Methodology ....................................................................................................... 399

Research Design ............................................................................................................... 399

Population, Measurement, and Sample............................................................................. 399

Instrument Development..................................................................................................... 40

Data Collection and Final Population ................................................................................. 41

Human Subjects Approval .................................................................................................. 41

Characteristics of the Survey Instrument ............................................................................ 42

Data Analysis ...................................................................................................................... 42

Qualifications of the Researcher ......................................................................................... 43

Personnel ............................................................................................................................. 43

Research Methodology Summary ....................................................................................... 45

Chapter 4: Analyses and Results ............................................................................................ 48

Descriptive Statistics........................................................................................................... 53

Results for Hypothesis Statement 1 .................................................................................... 59

Results for Hypothesis Statement 2 .................................................................................... 61

Results for Hypothesis Statement 3 .................................................................................... 63

Results for Hypothesis Statement 4 .................................................................................... 69

Chapter 5: Discussion ............................................................................................................. 76

 viii
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
Conclusions………………………………………………………………………………..76

Implications ........................................................................................................................ 77

Organizational Implications ................................................................................................ 77

Industry Implications .......................................................................................................... 78

Limitations .......................................................................................................................... 80

Future Research ................................................................................................................ 822

Epilogue ............................................................................................................................ 823

References ............................................................................................................................... 84

Appendices.............................................................................................................................. 84

Appendix A: Human Subjects Approval ........................................................................... 92

Appendix B: Initial (Pilot Study) Survey for Use in Research and Corresponding Data

Collection ............................................................................................................................ 84

Appendix C: Final (Post-Pilot Study) Survey for Use in Research and Corresponding Data

Collection ............................................................................................................................ 84

Appendix D: Research Overview and Consent Form for Prospective Survey Respondents

for Use in Research and Corresponding Data Collection ................................................... 95

Appendix E: Research Survey Data................................................................................... 96

Appendix F: Research Survey Data (Graphical) ............................................................. 122

Appendix G: Respondent Group Profile Characteristics (Summary) .............................. 158

Appendix H: Biography of Dr. Fred D. Davis................................................................. 159

 ix
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
Appendix I: Biography of Dr. Everett M. Rogers ........................................................... 160
 x
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
List of Tables
Table 1: Respondent Group Categories Based on Timing-Diffusion of Innovations……...50

Table 2: Organizational Department……………………………………………………….53

Table 3: Years of Experience……………………………………………………………....54

Table 4: Educational Level…………………..…………………………………………….55

Table 5: Gender….………………………………………………………………………….56

Table 6: Company Size (Based on Number of Employees)………………………………..56

Table 7: Company Size (Based on Annualized Sales)…..…………………………………57

Table 8: Automotive Supplier Type/Level…………………………………………………58

Table 9: Current Usage (e-SCM software)...……………………………………………….59

Table 10: Descriptive Statistics for H1-Ease of System Use (EOU)..……………………..60

Table 11: Correlational Statistics for H1-Ease of System Use (EOU)….………………….61

Table 12: Descriptive Statistics for H2-Perceived Usefulness (PU)…………….…………62

Table 13: Correlational Statistics for H2-Perceived Usefulness (PU)..……………………63

Table 14: Descriptive Statistics for H3-Organization Size……………………………...…64

Table 15: Descriptive Statistics for H3-Organization Size...………………………………65

Table 16: Descriptive Statistics for H3-Organization Size..…………………………….…65

Table 17: Descriptive Statistics for H3-Organization Size..……………………………….66

Table 18: Descriptive Statistics for H3-Organization Size..………….……………………67

Table 19: Descriptive Statistics for H3-Organization Size ..………….……………………67

Table 20: Descriptive Statistics for H3-Organization Size..……………………………….68

Table 21: Descriptive Statistics for H3-Organization Size………………………………...69

Table 22: Descriptive Statistics for H4-Gender (Female).…………………………………70

Table 23: Descriptive Statistics for H4-Gender (Male)……………………………………71

 xi
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Table 24: Correlational Statistics for H4-Gender (Female)..………….…….………………72

Table 25: Correlational Statistics for H4-Gender (Male).……………..…….………………72

Table 26: Correlational Statistics for H1-H4: EOU, PU, Company Size and Gender (M/F).73

Table 27: Hypotheses Testing Summary (H1-H4)………...…………...……………………74

 xii
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
List of Figures
Figure 1: Proposed Research Model to Test Relationships Among Various Factors on e-SCM

Procurement System Usage ……………………………………………………….………...12

Figure 2: U.S. Vehicle Sales, 1975-2015 ................................................................................ 35

Figure 3: Major Tier 1 Automotive Supplier Bankruptcies 2001-2009 ................................. 36

 1
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Chapter I–Introduction

Introduction

The purpose of this research study was to identify, within the domestic

automobile manufacturer supply chain, factors associated with the decision to adopt an

electronic supply chain management procurement system (e-SCM procurement system).

This was completed through an electronic questionnaire administered to industry

professionals through their individual organizations (via professional email addresses).

The surveys used competency areas from the Technology Acceptance Model (“TAM”:

Davis, 1985). These competency areas include user acceptance of new technologies and

factors associated with the likelihood of using such new technologies (Davis, 1985).

The initial TAM concept was originated as an extension of the original Ajzen and

Fishbein work with the Theory of Reasoned Action (“TRA”; Ajzen & Fishbein, 1975).

The TRA model examined those factors which drive individual behavior and are driven

by behavioral intentions where behavioral intentions are a function of an individual's

attitude toward the behavior and subjective norms surrounding the performance of the

behavior. This model was then later examined likewise by way of an Information

Systems (IS) perspective (Ajzen & Fishbein, 1980).

This first chapter will focus on the problem statement, the significance of the

problem, objective of the research, research questions, limitations, delimitations and

assumptions of the study. Definitions used in this project are also provided. Chapter II

presents the literature review of pertinent subject matter and previous applicable studies;

Chapter III presents the research methodology utilized for this study. Chapter IV
 2
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
provides an analysis of the research data collected via electronic survey methodology,

and Chapter V provides a conclusion and implications with discussions for further

research opportunities via future studies.

Background

The automotive industry in the United States is currently at a point of advanced

overall volume recovery with a record-selling year of 17.5 million vehicles being sold in

the United States in 2015, breaking the former record of 17.4 million vehicles in 2000

(Phillips, 2016). This volume of sales is occurring not that long after being in a state of

great peril, as shown by the relatively recent United States Government loan programs

awarded to General Motors Corporation and Chrysler, LLC., thereby saving each

individual corporation from economic extinction (Cooley, 2011). This low-point of

automotive sales within the United States was during 2009, with national sales

bottoming out at 10.4 million vehicles (Ward’s Auto, 2016). This up and down volume

trend is in a long-standing history of an industry that has continually been marked by a

boom-or-bust cyclical nature (Hill, 2014). In addition to the bankruptcy filings and

reorganization of these same companies, there were also filings via others within their

supply chain, including several multi-billion dollar direct suppliers of automotive

components (Weddell, 2011). Looking at the financial impact of these bankruptcies and

the correlated “Great Recession of 2007-2009”, these and other similar events (such as

other federal programs like the “Cash for Clunkers” program, which was implemented in

order to try and grow U.S. automotive sales) help to show why the automotive

manufacturing industry in the United States has been under heavy scrutiny, via political

and economic means. Such political examination was on display in a very public
 3
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
manner when Congress had each of the Big Three automotive companies’ leaders testify

on Capitol Hill in 2008 and 2009, prior to providing “bailout” packages in excess of $80

billion to both the General Motors Corporation and Chrysler, LLC. collectively (Hitt,

2008).

The U.S. automotive industry has continued to be in an economic decline, as

witnessed by the loss of market share, share price, and most notably, domestic jobs as

these companies have downsized dramatically in recent years. This decline has resulted

in over 800,000 automotive jobs lost in the state of Michigan alone since 2000 (Vlasic,

2009). Most recently, General Motors Corporation, once the world’s largest company,

declared bankruptcy on June 1st, 2009 (General Motors Company [GM], 2013).

According to GM's bankruptcy filing, the company had assets of $82.3 billion, and

liabilities of $172.8 billion, which made GM’s bankruptcy the fourth largest U.S.

bankruptcy on record (Putnam, 2013).

In addition to the Original Equipment Manufacturers (“OEMs”) or vehicle

manufacturers, one can similarly examine suppliers within the automotive supply chain,

especially those at the Tier 1 level or suppliers who sell directly to the automakers

themselves. As such, Delphi Corporation, once one of the largest Tier 1 automotive

suppliers, declared bankruptcy on October 8th, 2005, causing extreme negative

ramifications to the over 200,000 Delphi employees worldwide (Delphi, 2015). This

bankruptcy lasted over four years, similar to the previous filing by fellow direct “Tier 1”

automotive supplier Federal-Mogul Corporation, a bankruptcy that lasted over six years.

Each organization has since been able to resume operations as a publically traded

company via the New York Stock Exchange (NYSE) or NASDAQ (NYSE; Putnam,
 4
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
2013). The U.S. automotive industry has been under heavy criticism from other

industries, both economically and operationally, “…due to the numerous inefficiencies

and old ways of conducting business” (Bennett, 2009). The operational methodology

style that was used by the U.S. automotive industry is one that is non-innovative, and is

often referred to a “laggard” in regard to the innovation aspect of this industry (Rogers,

2003). As a result of corporate globalization, a trend that continues to this day,

competition within the automotive industry was perhaps at its greatest point. As a result,

U.S. automotive corporations continue striving to cut expenses with tools used to

counter the imbalance of labor costs with various methods of cost savings both internally

and externally within their supply base to the automakers. As such, in order to be cost-

competitive, OEM manufacturers need to continually look for such cost-saving

opportunities throughout each organization.

One of the largest cost areas for automakers is directly-purchased components

from their supply base (Tracey, M., Fite, R., & Sutton, M., 2004). In 2000, several

automakers (Ford, GM, DaimlerChrysler, Renault, and Nissan) worked collaboratively

to address this issue and combined their efforts to form a standard electronic marketplace

for the automotive supply chain, named Covisint (Comer, J., Grewal, R., & Mehta, R.,

2001). As of early 2016, Covisint is still the chosen e-SCM software for procurement

transactions for automotive companies such as General Motors, Ford Motor Company,

Daimler AG (parent of Mercedes-Benz), Jaguar, Land Rover, Peugeot-Citroen, and

Mitsubishi (Covisint, 2015). Covisint’s Tier 1 automotive suppliers include:

BorgWarner, Faurecia and Delphi Corporation (Covisint, 2015).

This study focused on the U.S. automotive industry, and more specifically, the
 5
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
use of electronic technology within the supply chain sourcing/procurement function (e-

SCM). This study analyzed the factors associated with the adoption of such e-SCM

systems located within the procurement function of the automotive industry. As part of

the collection of pertinent data from individual respondents, this study also provided

further demographic analyses of those individuals and organizations for which such

electronic procurement actions are performed in this industry.

For global competitiveness, many organizations within the automotive industry,

such as General Motors Corporation, have recently used more advanced technological

means in order to streamline previous processes (Dziczek, 2015). Many OEMs of

automobiles, such as GM and Ford Motor Company, are moving toward final assembly

processes only and pushing manufacturing of automotive parts and accessories to sub-

tier suppliers (Thompson & Merchant, 2010).

Prior to the recent United States’ Government’s bailout actions, an aura of

adverse attitudes and corresponding actions have contributed to this industry’s long-term

downslide (Gehm, 2007). As such, this adverse attitude as well as the resistance and/or

delay to change are major factors that caused unnecessary problems within the domestic

automotive industry. These are both items that many other industries have moved

beyond in order to create change rapidly within their own organizations, often having

large supply chain systems and a corresponding reliance on suppliers, such as Dell

within the computer information industry (Ayers, 2006). Herein lies the problem:

maintaining competitiveness within a global economy while being reluctant to adopt

new technologies, ones that would aid in streamlining operations; this reluctance is often

the case for the U.S. automotive industry (Hill, 2014).

 6
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
Focusing specifically on supply chain management systems in regards to the

procurement function, the automotive industry will likely to continue to shift to a more

dynamic and innovative strategy, using many of the changes practiced elsewhere (Gehm,

2007). This is quite apparent when comparing the use of advanced techniques (such as

e-procurement software) in the U.S. automotive industry versus other manufacturing-

based industries. Examining this issue with the assistance of the TAM Model provided a

theoretical framework for this study, which provided practical insight specific to the U.S.

automotive industry. The Technology Acceptance Model is based on two main precepts:

perceived usefulness and perceived ease-of-use. This model was originally intended to

test the relative success and corresponding rationale for new end-user information

technology systems within organizations (Davis, 1985). Survey research data were

collected and analyzed in order to measure these constructs, a methodology that has been

replicated in this study.

Problem Statement

As part of the literature review, a stringent and overall investigation of prior

work on this subject matter was completed to verify the originality of this study. It was

concluded that an analysis of those factors associated with whether organizations adopt

electronic supply chain management (e-SCM) systems within the U.S. automotive

industry and whether those organizations utilize such systems within their procurement

functions of their supply base has not been adequately addressed. As such, the results of

this study add to the collective body of knowledge for both the U.S. automotive industry

and academia.
 7
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
Nature and Significance of the Problem

With recent advances in technology and intense competition in manufacturing,

there is a great need to educate and employ qualified manufacturing professionals. Due

to the combination of increased automation and greater productivity, manufacturers have

adopted new management techniques that require more sophisticated, qualified, and

adapted workers. These manufacturing advances have led to increased skill level

expectations of employees by their employers as compared to earlier eras. (Mital &

Pennathur, 2004).

According to Womack (2002), lean business and manufacturing practices, along

with high quality manufacturing, are the items expected to save those U.S. industries

faced with intense global competition. To retain U.S. manufacturing plants, as well as

the numerous jobs that are interrelated amongst the OEM automotive industry, it is

absolutely critical that technological innovation and cost-competitive actions become

paramount objectives within the U.S. automotive industry (Society of Manufacturing

Engineers, [SME], 2013). It is the review, evaluation and corresponding adoption of

such advanced technology as researched here in this study, that will continue to aid in

stemming the tide of lost jobs due to the fact that “…the industry’s total workforce has

fallen by 17 percent since 2000” (Motor & Equipment Manufacturers Association

[MEMA], 2014).

It is critical that automotive industry professionals-especially practicing

engineers, procurement personnel, and their corresponding management, understand the

principles and practical applications of electronic Supply Chain Management (e-SCM)

systems (Grewal, 2002). Such a base understanding of such systems is also a key
 8
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
foundation to students of manufacturing, engineering and management. There has been

more recent emphasis in this industry concerning the use of electronic systems for

supply chain management procurement processes, as witnessed by the advent of SCM-

focused procurement software such as: Covisint, SAP, SupplyOn, and FreeMarkets

(Tracey, et. al, 2004). Hence, professionals and researchers alike within the automotive

industry need to know, and further understand, those factors that support or inhibit the

adoption of such technology. It is the goal of this study to add to the body of knowledge

within this industry, providing additional insight: to students who will become future

employees within this industry; to educators who also will work within this industry and

academia and lastly, industry practitioners who will take this information back to benefit

their own automotive organizations.

The U.S. automotive industry has been more reluctant to adopt new technologies and

corresponding business methods than other industries as witnessed most recently in 2009

by bankruptcy filings by both General Motors Corporation and Chrysler Corporation,

LLC., both historical leaders in global automotive production (McAlinden, 2010). As

this industry employs millions nationally within its multi-level suppliers, support

companies, dealership and manufacturing ranks, this scope economically corresponds to

over 3% of the U.S. national GDP (McAlinden, 2003). As this is our country’s largest

manufacturing industry (both in terms of employment and revenue generation) as well as

the world’s largest automotive industry, it is imperative to our country’s economic well-

being that the automotive industry remains an integral and vibrant base to provider of

income to millions of families. It is also important to note that those factors that are

associated with the adoption of these technologies (including electronic supply chain
 9
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
management software, e-SCM) specific to the U.S. automotive industry and its

corresponding supply base are currently unknown via existing research. Additionally,

research within this industry based on the efficiencies gained via streamlined

procurement operations and overall business processes by using such systems within this

framework, are currently unknown. This research study works to rectify the

aforementioned gap that exists within this industry and prior studies. Combining the

importance of this industry to our nation with the innovation that e-SCM procurement

systems provide organizations in terms of gained efficiencies is paramount to future

industry and American economic growth. This is likewise why this study is so

imperative: to further understand those factors that assist in adoption of this technology

and, moving forward, to promote these factors in the organizations that implement such

technologies, which fosters growth in this industry.

Objective of the Research

The purpose of this research is to identify those factors associated with the

adoption of e-SCM systems among organizations within the U.S. automotive industry.

To guide this effort, the theoretical constructs developed within the TAM framework

were used, such a study had not been previously addressed or completed specific to the

U.S. automotive industry (Personal interviews with F.D. Davis, Sept. 7, 2009; June 27,

2011). These constructs include: the attitudes toward using such systems by means of

perceived ease of use and perceived usefulness (internal organizational benefit). The

corresponding survey guidelines as it relates to prospective respondents were followed

(Archer, 2005). From Archer’s survey approach, it was determined that the respondents

for this study followed in a likewise similar pattern to those in “Innovative

 10
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
Organizations” (Rogers, 1963). Due to this discovery of response rates and timing,

those surveyed as part of this study were examined via the Diffusions of Innovations

framework as formulated by Rogers (1963) in order to further investigate innovative

characteristics within the automotive supply chain.

When examining the model on which this study was based (Figure 1), this

research study examined factors that determined the organizational decision as to

whether or not to adopt e-SCM procurement systems within their own automotive

industry organization. The study examined some of those factors in this organizational

decision-making process along with the corresponding perceived benefits. This research

was framed on an individual basis, as each potential respondent was representative of

their corresponding organization, with their corresponding demographics likewise

collected and examined. Lastly, this model summarizes this study and further

examination of the following research questions and hypotheses.

Research Questions

This study concerning automotive industry professionals and their use of e-SCM

addressed the following research questions:

 Is the ease of system use a factor associated with the decision to utilize e-SCM

procurement technologies among U.S. automotive suppliers?

 Does the perception of organizational usefulness a factor associated with the

decision to utilize e-SCM procurement technologies among U.S. automotive

suppliers?

 Does the organization’s size play a factor in whether or not a company utilizes e-

SCM procurement technologies?

 11
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
 Does gender play a factor in how such systems are viewed and/or perceived?

Hypotheses

The following hypotheses were tested based on the survey results of this

research:

H1: The decision to use an e-SCM procurement technology system has a

significant positive association with ease of system use.

H2: The decision to use an e-SCM procurement technology system has a

significant positive association with organizational internal usefulness.

H3: The larger the organization, the more apt or greater the acceptance is to

utilize an e-SCM procurement technology system.

H4: The use of an e-SCM procurement technology system by certain gender

(women) within the U.S. automotive supply chain has a significant positive

association with ease of system use.

 12
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

e-SCM Procurement Demographics

1
Factors on e-SCM Usage
Gender

2 Ease of System
H1,H4
Experience @ Use (EOU)
Current
Employer

3
Organizational
Size – Annual
Revenues H1,H4

H2, H3
4
Organizational
Size – Number
of Employees

5 H2, H3 Organizational
Education (Internal)
Level Usefulness
(PU)
H1,H4 H2, H3

6 Perceived
Organizational Benefits
Supply Chain [eSCM Procurement
Systems]
Level
Organizational Decision to Adopt
e-SCM Procurement Systems

Figure 1: Proposed Research Model to Test Relationships Among Various Factors on e-

SCM Procurement System Usage
 13
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Assumptions

It is assumed that the sample respondents in this study will be:

1. Appropriately knowledgeable in supply chain systems and will be honest

and non-biased in their responses.

2. Representative of the population at a professional level in terms of

geographical location, educational background, and industry type.

3. Representative of the population at a subject matter expert level in terms

of supply chain management (SCM) procurement systems, educational

background, and the automotive industry.

Delimitations and Limitations

The results of this study are applicable to the U.S. automotive industry and its

corresponding supply chain. In addition, this industry-specific study can also be

extended geographically to create an international survey. Because of time and resource

limitations, as well as the need to keep the study at a manageable size, this research did

not consider other potential factors such as: organizational factors, cultural factors, and

market factors.

Delimitations: This research has purposely focused on domestic U.S.

automotive original equipment manufacturers (OEMs) and their suppliers which

constitute this industry’s supply chain. Despite these limitations, the corresponding

results may also be useful to other manufacturing and non-manufacturing organizations,

 14
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
such as colleges and universities, whereupon the educational need of such applied and

pertinent subject matter is prevalent. Delimitations inherent in the directed sampling

method of randomly using individuals who were professional industry-affiliated meant

that those who didn’t belong to a given professional industry organization such as SAE,

AIAG, etc., were not eligible for this study. These items are further evaluated in Chapter

V as part of the summary and conclusion section of this research study.

Definition of Terms

AIAG. The Automotive Industry Action Group is a globally recognized

organization founded in 1982 by a group of visionary managers from Chrysler, Ford

Motor Company, and General Motors. Their purpose is to provide an open forum where

members cooperate in developing and promoting solutions that enhance the prosperity of

the automotive industry. AIAG's focus is to continuously improve business processes

and practices involving trading partners throughout the automotive supply chain.

(Automotive Industry Action Group, 2012).

Automation Alley. Automation Alley is a non-profit organization that drives

growth and economic development through a collaborative culture that focuses on

workforce and business development initiatives. Automation Alley attracts the creators

and consumers of diverse technologies from a variety of industries around the world.

Automation Alley, Michigan's largest technology business association, drives growth in

Southeast Michigan's economy. Automation Alley was founded in 1999 and is

Michigan’s leading technology business association, connecting companies and

organizations with talent, resources and funding to accelerate innovation and fuel

Southeast Michigan’s economy. The Automation Alley region encompasses the

 15
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
counties of Genesee, Livingston, Macomb, Monroe, Oakland, St. Clair, Washtenaw,

and Wayne. (Automation Alley, 2015).

Center for Automotive Research (CAR). The Center for Automotive Research

is a non-profit industry organization that drives growth and economic

development through a collaborative culture that focuses on workforce and business

development initiatives with a focus on the research specific to the automotive industry.

To fulfill its mission as an impartial voice of the industry, CAR maintains strong

relationships with industry, government agencies, universities, research institutes, labor

organizations, media, and other major participants in the international automotive

community since its inception as a standalone non-profit entity in 2003. (Center for

Automotive Research, 2016).

Competency. The knowledge, skill, and ability in a specific subject area or skill

set to perform a specific set of related tasks successfully to meet a specified standard.

(Institute for Supply Management, 2014).

Cronbach’s Alpha. A measure of the extent to which variables believed to

measure the same underlying concept are consistent or “hang together.” It also measures

the extent to which an index composed of such variables is said to demonstrate internal

reliability. The minimal acceptable level to justify the combination of variables in a

single index or scale is 0.70. The statistic has a possible range of values from 0 to +1.0.

(Pearson, 2010).

ISM. The Institute for Supply Management™ (ISM) is the world’s largest supply

management association as well as one of the most respected. ISM's mission is to lead

the supply management profession through its standards of excellence, research,

 16
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
promotional activities, and education. Founded in 1914, ISM is a non-profit association

whose membership base includes more than 40,000 supply management professionals

with a network of domestic and international affiliated associations. (Institute for Supply

Management, 2014)

Information systems (IS). The term information systems refers to the use of,

often, an electronic information system (informative data processing) that assists an

organization or individual’s collective useful data processing and analysis. Please note

that the human part of the system should also be “developed” in order to ensure the

existence of the information system. This very important and necessary aspect for

successful information systems development, is often lacking in university and industry

courses, papers, and books, as well as in the professional/corporative MIS development.

This fact would explain most of the IS practical failures by professionals within a

network of domestic and international affiliated associations. (Callaos, N. & Callaos, B.,

2002).

Lean Manufacturing. An overall methodology that seeks to minimize the

resources required for production by eliminating waste (non-value added activities) that

inflate costs, increase both lead times and inventory requirements, and emphasizes the

use of preventive maintenance, quality improvement programs, pull systems, flexible

work forces and production facilities. (Society of Automotive Engineers, 2014).

Original Equipment Manufacturer (OEM). OEM is a term used to describe

those automobile manufacturers who directly assemble and sell automobiles to the

domestic U.S. marketplace. Those suppliers who sell to the OEMs are then categorized

by level of purchasing, i.e., direct suppliers who sell to the OEMs are considered “Tier 1
 17
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
suppliers”, those that sell to the Tier 1 suppliers are considered “Tier 2 suppliers” and so

on throughout the entire automotive industry. Due to their direct involvement with the

OEMs, Tier 1 Suppliers often have additional supplemental costs due to the OEMs

requirements, such as the need to be ISO/TS-16949 certified within their organization,

for example (Original Equipment Supply Association, 2014).

Original Equipment Supply Association (OESA). OESA is an industry

organization that exclusively represents and serves manufacturers of automotive vehicle

components, tools and equipment, automotive chemicals, and related products used in

the production, repair, and maintenance of all classes of motor vehicles. OESA offers its

members superior global intelligence, leading-edge market research, international

business support, government representation, industry networking, and commercial

services (Original Equipment Supply Association, 2014).

Society for Automotive Engineers (SAE). SAE is a non-profit, practitioner-

based organization dedicated to cultivating understanding, analysis and exchange of

productivity methods and their successful application in the pursuit of excellence within

the global automotive industry (Society of Automotive Engineers, 2014).

Society of Manufacturing Engineers (SME). SME is the professional society

that supports manufacturing education and promotes an increased awareness of

manufacturing engineering by keeping manufacturing professionals up to date on

leading trends and technologies (Society of Manufacturing Engineers, 2014).

Society of Petroleum Engineers (SPE). SPE is the professional society that

supports petroleum-based research and corresponding education and promotes an

increased awareness of manufacturing engineering by keeping manufacturing

 18
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
professionals up to date on leading trends and technologies (Society of Petroleum

Engineers, 2012).

Spearman’s Rho (ρ). A non-parametric statistic (named after Charles

Spearman) measuring the strength of association of two ordinal-level variables. Also

known as Spearman’s Rank Order Correlation Coefficient. The statistic has a possible

range of values from -1.0 to +1.0. (Pearson, 2010)

Supply chain management (“SCM”). Supply chain management encompasses

the planning and management of all activities involved in sourcing, procurement,

conversion, and logistics management activities. Importantly, it also includes

coordination and collaboration with channel partners; channel partners can be suppliers,

intermediaries, third-party service providers, and customers. Supply chain management

can also refer to supply chain management software, which include tools or modules

used in executing supply chain transactions, managing supplier relationships and

controlling associated business processes. (Institute for Supply Management, 2014).

Technology acceptance model (TAM). The technology acceptance model was

first theorized by Fred D. Davis of the Massachusetts Institute of Technology in 1985 as

a model to test the relative success and corresponding rationale for new end-user

information technology systems. The technology acceptance model is based on two

main precepts: usefulness and ease-of-use, used in a perceived context (from the user’s

perspective). Therefore, the technology acceptance model and corresponding literature

will refer to perceived organizational usefulness (PU) and perceived ease of use (EOU).

This model has been used in several applications, often based on industry or student

affiliation, in order to draw inferences for the remaining population (Davis, 1985).
 19
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
Chapter II–Review of the Literature

This chapter provides a summary of the current literature relevant to important

concepts relating to those pertinent items that this study addresses. More specifically,

this includes a review of the current literature relevant to the U.S. automotive industry,

suppliers to the U.S. automotive industry, corresponding pertinent professional industry

organizations, the technology acceptance model, automotive industry fiscal impact and

survey research methodology.

The technology acceptance model, or TAM, is an adaptation of the theory of

reasoned action (TRA), which was specifically introduced to explain individuals’

computer usage behavior within an information systems (IS) background. TAM uses

TRA as a theoretical basis for identifying the strong causal links between two key

beliefs-(i) perceived usefulness (PU) and (ii) perceived ease of use (EOU). Therefore,

TAM is a causal model that studies the covariance of these constructs to determine if

there exists a causal relationship among them (Davis, 1985).

Generally, the goal of TAM is “…to provide an explanation of the determinants

of computer acceptance that is, in general, capable of explaining user behavior across a

broad range of end-user computing technologies and user populations, while at the same

time being both parsimonious and theoretically justified.” (Davis, 1985, p. 985).

This research study was undertaken to assist in addressing the possible

connections between electronic supply chain management systems (e-SCMs) and the

decision to adopt such systems within a given organization, focusing specifically within

the automotive industry. The focus on the automotive industry is one of great interest to

the researcher as it has provided much of his professional career in several organizations,
 20
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
in addition to being paramount to this university’s local domain in Southeast Michigan.

Much like the U.S. in general, this regional locale has recently seen immense decline in

terms of both employment and economic impact, yet, despite this recent decline, this

region is still very relevant in the automotive industry. In fact, “Southeast Michigan has

the highest number of advanced automotive industry jobs, accounting for 9.3 percent of

all advanced automotive jobs in the U.S. nationally” (Automation Alley, 2015). In

addition, the need for such a study and corresponding further research within e-SCM and

this industry is paramount for both the economies of the United States and more

regionally, within the State of Michigan (Dziczek, 2015). The questions for the study

were derived from the previously validated study concerning the technology acceptance

model, first proposed by Davis as part of his original dissertation at MIT (Davis, 1985).

In order to stay likewise consistent with previous survey research instruments

applying the TAM model to organizational level adoption decisions (Grandon &

Pearson, 2004), the items for ease of use focused on the decision maker’s perception of

their own ability to use e-SCM procurement systems. The mediating variable “perceived

usefulness (PU)” is a mix of the decision maker’s perception of the usefulness to

themselves and to the organization (Grandon and Pearson, 2004). For example, sample

questions posed to prospective respondents included: “Using e-SCM systems would

improve my job performance” and “Using e-SCM systems would enable my company to

accomplish specific tasks more quickly”. For consistency, likewise, all usefulness items

in the developed instrument addressed the usefulness of e-SCM to the respondent’s

organization. The study was performed in a survey format with survey respondents

being practitioners in the field, gathered from various levels within the automotive
 21
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
supply chain. This includes purchasing, engineering, and related personnel directly

employed by the automakers as well as their direct suppliers (e.g., “Tier 1 suppliers”,

“Tier 2 suppliers”), and so on. These organizational departments of the individual study

respondents were captured via the demographics section of the research survey.

Collectively, this group is referred to as the “automotive supply chain” (Institute for

Supply Management, 2014).

The survey used a five-point Likert scale and was distributed via electronic

means (via email) by way of a link to the survey using SurveyMonkey software. A pilot

study was performed with a small group of industry professionals and from this initial

pilot study, response data from this was analyzed in order to determine prospective

questions for the final survey instrument. This final survey instrument was then

validated prior to distribution to the final prospective survey population. The

prospective survey population was sampled from various pertinent industry associations

of which the researcher is a practicing member, i.e., SAE, ISM, AIAG, OESA, and

SME. The utilized sample included those employed within the United States automotive

industry supply chain, selected randomly among those who are members of the

automotive industry via professional affiliation (e.g, SAE, ISM, SME, AIAG, OESA).

In addition to collecting the desired survey data that addresses usage concerns,

this survey also collected the corresponding demographic information that was used to

further define those individuals who are currently working specifically within this

industry and their corresponding background and professional experience/makeup.

Additional further analysis of this study’s respondents’ demographics occur as part of

the data analysis and results as well as discussion sections found later in this study.
 22
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
Survey Research Methodology–Avenue for Success

Personnel surveys that utilize current industry as prospective respondents have

been carried out in the past utilizing both standard postal mail and electronic web-based

surveys. Due to various factors, such as cost and time, however, it is becoming

increasingly common to use Internet-based tools for survey delivery as using the Internet

provides an effective method of collecting data (Dillman, 2000). Raymond (2005)

suggested that it still may be necessary to use conventional mail to establish contact with

survey recipients. He also recommended that it is equally important to evaluate the

questionnaire for compatibility with Internet delivery. Several advantages of Internet

surveys include the following (Archer, 2005; Raymond, 2005).

1. Complete elimination of paper, postage, mail out, and data entry costs.

2. Reduced time required for implementation.

3. International population can be accommodated in the survey with little to no

extra cost.

4. Reminders and follow-up on non-respondents are relatively easy (as opposed to

prospective postal mail respondents).

5. More dynamic interaction with respondents can be obtained.

Likewise, based on prior literature, the limitations of Internet surveys can and

often include (Archer, 2005; Dillman, 2000):

1. Since everyone does not have access to the Internet, this method will not work

for all populations.

2. Computer literacy of respondents is necessary. (Stated in Research

Assumptions)
 23
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
3. Screen configurations may appear significantly different from one respondent to

another based on individual settings of the computer.

4. It is likely that Internet surveys may be detected as “junk” mail due to the

sophistication of modern email programs and/or corporation firewalls.

Since research studies typically consist of 75-200 job related phrases, the

questionnaire becomes lengthy and poses a challenge to Internet delivery, especially

given the fact that most respondents will complete the survey at their employment

location (Archer, 2005). As such, a general rule of thumb for Internet questionnaires is

that they be no less convenient to complete than those printed on paper (Raymond, 2005,

p. 35). Dillman (2000) outlined the following design principles for web based

questionnaires:

1. Introduce the Web questionnaire with a welcome screen that is motivational,

emphasizes the ease of responding, and instructs respondents about how to

proceed to the next page.

2. Provide a PIN number or other sign-in method for limiting access only to

people in the sample.

3. Present each question in a conventional format similar to that normally used

on paper self-administered questionnaires.

4. Restrain the use of color so that figure/ground consistency and readability are

maintained, navigational flow is unimpeded, and measurement properties of

questions are maintained.

5. Provide specific instructions on how to take each necessary computer action

for responding to the questionnaire, and give other necessary instructions at

 24
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
the point where they are needed.

6. Use drop-down boxes sparingly, consider the mode implications, and identify

each with a “click-here” instruction.

7. Do not require respondents to provide an answer to each question before

being allowed to answer any subsequent ones; Use “skip logic” if possible.

8. Provide skip directions in a way that encourages marking of answers and

being able to click to the next applicable question.

9. Use graphical symbols or words that convey a sense of where the respondent

is in the completion process, but avoid those that require significant increases

in computer resources.

10. Exercise restraint in the use of question structures that have known

measurement problems on paper questionnaires, such as check-all-that-apply

and open-ended questions. (pp. 377-398)

In addition to these recommendations, Raymond (2005) has suggested the

following regarding questionnaire format and administration:

1. Use a cover letter that describes the purpose of the study, how respondents

were selected, and how confidentiality will be maintained. Indicate the time

required to complete the questionnaire, the date to respond by, and how to

return it (when using mail questionnaire). When feasible and/or necessary,

use official letterhead and a personally signed letter from a trusted authority.

2. Plan on at least two and up to four distributions/e-mailings that includes a

thank you/reminder postcard, followed two to three weeks later by a second

questionnaire mailing to non-respondents.

 25
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
3. The font should be large enough to read easily. Minimize uppercase-only

text. Use features such as bold, italics, and underlining consistently.

4. Give the survey a tidy and navigable appearance. Avoid squeezing too much

text onto a page to make the questionnaire appear shorter

5. For stand-alone questions (e.g., demographics) with ordinal scales, use a

vertical arrangement of response options. A two-column page layout is

easier to read and uses space in a better way. (p. 36)

A major item of concern when conducting survey research involves the rate of

response of prospective respondents. Archer (2005) conducted a study to determine the

effect of the number of reminders on response rate of web-based surveys. The study

concluded that reminders sent on day seven of the survey produced the largest increase

in responses. The study also recommended using three total contacts with the

respondents that includes: initial invitation, first reminder, and final reminder. This

guideline provided a standardized practice followed by this researcher in terms of data

collection for this study. It is within Archer’s framework that this survey data was

distributed and collected for further analysis and delineated in subsequent sections. It

was from the respondent results as compared against Rogers’ Diffusion of Innovation

Theory (1963), a theory that works to describe the similar innovative goals of the U.S.

automotive industry, that a similar distribution of respondents was witnessed in this

study, a noteworthy similarity that speaks to the innovativeness within the automotive

industry. The use of electronic media and corresponding survey software

(SurveyMonkey®) was the mechanism by which the respondent survey data was

collected and tabulated along with corresponding options for respondents to receive
 26
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
completed survey results.

TAM and Survey Research Methodology–Historical Aspects

A further examination into survey research methodology shows that the literature

has witnessed the trends that this form of research has undergone, originating from the

validity of mail and other media by which surveys have been previously delivered to

prospective respondents to now being delivered predominantly via an online format

(Evans, 2005). In addition, due to increased opportunities for wider data collection with

often limited funds economically (as often with graduate students), the online medium

by which surveys and survey research methodology exists has provided researchers a

very economical manner to collect information. In regards to this medium, Dillman

(2000) notes, that “no other method of collecting survey data…offers so much potential

for so little cost” (p. 400).

From a historical perspective, the TAM model has been utilized and validated in

various organizational environments to measure both individual as well as organizational

usage intentions (Doll, W., Hendrickson, A. & Deng, X., 1998). As such, TAM traces

how external variables affect individuals’ internal decision processes within a

technological aspect. As a whole, in order to comprehensively understand individual

acceptance of technology, one needs to interpret user behavior within at least four major

perspective contexts: the cultural (national) context, organizational (implementation)

context, individual context, and system (technology) context.

The cultural (national) context refers to the macro environment in which the

investigated user acceptance behavior may occur and the specific organization is located.

For the purposes of this study, the cultural (national) and organizational context are
 27
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
focused solely upon the United States and the automotive industry supply chain

contained within. From a nationalistic perspective, culture has been defined as a set of

core values that shape the behavior of individuals as within as well as well as the whole

society. As such, culture does have an impact on an individual’s decision making

process towards use of a system and was previously analyzed to show, for example, that

the TAM model may not hold true for a Japanese culture (Straub, D., Keil, M. &

Brenner, W., 1997).

The organizational (implementation) context aspect refers to the specific

environment where the individual is employed and the investigated technology

acceptance takes place. A system is usually deployed in an organizational setting;

thereby individual adoption of a system is a secondary adoption decision-making event

(Chin & Gopal, 1995). This essentially means that the decision is made by individual

users once the organizational decision to adopt such a system initially occurs. In order

to increase the user’s acceptance of a particular information system (IS), organizations

have to create a favorable environment to support and encourage usage of such IS at, and

within, the workplace. Such support can be found within the organization’s information

technology (IT) computing policy, along with overall management support and

encouragement, both of which have empirically been proven to be very important

(Callaos & Callaos, 2002). Many researchers have drawn attention to effects of the

training on user acceptance of a given information system (IS). Traditional training,

role-playing game format training, or a specifically designed training program for

specific user groups does help users to increase their knowledge about the information

system (IS) in their organization, so that they are more likely to have a positive intention
 28
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
to use it in their work (Venkatesh & Morris, 2002).

Examining from a group aspect, workers in a team or community could get

benefits from informal training, just as knowledge sharing in the group could increase

willingness to use a system. This factor is very crucial today since most workers operate

in a team environment (Gallivan, 2000). Through research from an additional IS study,

Cooper (1994) found that the organizational cultural role was also significant in new IT

implementation. The interpretation of TAM in the organization context will help us

examine the effects of organizational factors on individual behavior. Organizations’ as

the first adopter of the system have to create a secondary adoption environment that is

closely related to individual behavior. The usage of such a specific system by an

individual is shows their desire to improve his/her job performance within that given

organization, and as such, would then be expected to receive beneficial operational

additional positive feedback from related organizations. Measurements or factors that

increase user acceptance in one organization may not function well in another

organization; thereby individual organizational decisions are not necessarily broad-based

or indicative of similarly likewise organizations within a given industry, such as the

automotive industry, for example.

The individual context refers to those essential characteristics of individual users

that are often inherent or germane to system usage. An individual may exhibit

characteristics completely different from others in various organizations and from

different cultures. Individual differences refer to user factors that include traits such as

personality and demographic variables, as well as situational variables that account for

differences attributable to circumstances such as experience and training (Agarwal &

 29
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
Prasad, 1999).

Demographic variables, such as age, gender, and level of education; personality

variables related to computer technologies, such as computer anxiety, computer self-

efficacy, computer skills, cognitive style, etc.; and situational variables, such as

employment categories, prior experience with IS and computers; and experiences of

general computer usage or specific system usage etc., have all been empirically

examined as being important factors that influence individual technology acceptance

behavior (Venkatesh & Morris, 2002). As such, some of these described demographics

of respondents were captured within this study by way of the survey instrument. In

terms of this study, the “individual” is considered to be the user, or alternatively, the one

who takes action to perform the adoption behavior. The individual context defines the

boundary that one user’s perception and assessment of using a system is not the same as

that of others. As such, the TAM postulate aggregates these differences in most cases

within organizations. Such aggregation may segment users into similar groups and help

organizations to design proper promoting measurements or environments to assist in

increasing usage. Therefore, the interpretations of TAM from the individual context

clarify the importance of individual characteristics in determining resulting usage

behavior within the organization.

The e-SCM procurement system (technology) context refers to the end-user

computing technologies under investigation by any organization; whereas in the case of

this study, this would refer to such organizations which belong to the U.S. automotive

industry supply chain. Such technologies are information systems applications,

communications systems, and similarly, any information technology (IT) innovations.

 30
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
The system context defines the factors of a system and their effects on usage behavior.

System factors include a system’s usability, interface, interaction style, and system

quality, etc. For systems related to Internet technologies, the characteristics of web-page

design, response time, information location on the web, etc., have been tested in

empirical studies. For organizational communications technologies, factors such as the

system social presence and information richness, system accessibility, etc., has

significant impact on user’s beliefs about using the systems (Karahanna & Limayem,

2000). Here, the TAM model takes technology as the focus; with the system being the

target of the user’s adoption behavior (Davis, 2000). Without the system context, TAM

could potentially lose its basis of applicability and corresponding frame of reference.

The interpretation of TAM from the system context has allowed the researcher to

distinguish the results of one organization’s “apple” from another organization’s

“orange”, while each likewise providing validation for the specific information system

(e-SCM procurement system) that is in use within that given organization.

Comparatively, the cultural (national) context serves as a sort of macro-

environment, the individual context defines the microenvironment and the organizational

context is in the middle, with system context circling the target of individual technology

acceptance behavior. The understanding of these contexts and their effects on user

behavior has provided a solid base to explain why users either accept or reject a system

in a specific environment. From a national standpoint, additional TAM study

examinations have been performed based on TAM within a given nation, including a

multicultural, three-country study using the same TAM instrument for airline industry

respondents in Switzerland, Japan, and the United States (Straub, et. al., 1997). Whereas
 31
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
the findings were similar for the respondents in Switzerland and the United States,

cultural norms may speak to the non-symmetry of the Japanese respondent results. As

such, this study is focused on the U.S. automotive industry and its corresponding supply

chain. Likewise, then, the recognition of these contexts may possibly limit

generalization of findings from one study to other cases, but, alternatively, give

additional merit to industry-specific studies toward furthering the body of knowledge

within that given industry or nation.

Extrapolation of TAM

The original TAM model and corresponding research has been extended in many

studies, mainly by examining the effects of external variables on internal beliefs, attitude

and behavioral intention, both from an individual and organizational perspective. The

extension of perceived usefulness (PU) constructs highlights its important role in

determining user acceptance behavior, with the chronological dimension of usage

behavior helping to improve our understanding of how beliefs and attitudes change over

time. This helps to explain how factors initiating first-time usage differ from those

which influence post-adoption behavior (Davis, 2000). In addition, it is imperative that

organizations take great care prior to implementing such innovations internally by means

of planning, training, and related work processes. These actions all help to lessen and to

best avoid the potential pitfalls of unintended, or unanticipated, outcomes due to such

implementations internally within an organization, causing great costs financially and

also individual and organizational decline from a performance perspective (Bellamy,

2007).

The limitation of TAM calls for considerations of its applicability to complex

 32
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
and modern systems and to professional user groups, such as industry organizations as

SAE or SME, for example. As mandatory use becomes popular in organizations, the

importance of social norms, and likewise, review of application context in determining

user behavior should be reinforced in future studies as it is intended here. Another

application of the TAM framework utilized in a different perspective came from a set of

studies of the acceptance of telemedicine technology by individual physicians in Hong

Kong (Chau & Hu, 2001), which revealed an insignificant link between EOU to attitude

and behavioral intention. The more recent results of an exploratory study by Chau and

Hu (2002) found compatibility of telemedicine technology with physicians’ working

practice was a significant predictor of PU and had a very strong indirect effect on

physicians’ behavior intention through PU. The authors argued that TAM is a proper

model to explain and predict physicians’ intention to use telemedicine technology, but

TAM has to be supplemented by other theories in order to gain more insights into factors

influencing physicians’ behavior. There are differences between a physician’s micro-

working environment and work practice and those of common users or knowledge

workers in other business organizations. Another review of the TAM model as it relates

to a different industry, information technology (IT), shows that this model and its

premise that perceived usefulness (PU) and ease of understanding (EOU) are variables

within the steps toward organizational decision-making in a procurement setting

(Benamati & Rajkumar, 2008). As the researcher investigated this particular study

further, including interviewing Dr. J. H. Benamati, additional support of the TAM model

to investigate other industries was found, including usage within not-for-profit

organizations (Dr. [Link], personal communication, June 27th, 2009). Additional

 33
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
interviews were likewise conducted with Dr. Fred D. Davis, the architect of the TAM

model based on his initial research at MIT. From these personal telephone interviews

with the founder of the TAM model (Dr. F. Davis, personal communications, September

7th, 2009 and June 27th, 2011), additional verification of the originality of this study

(beyond the literature review) within the automotive industry was furthered with these

subject matter expert interactions. As part of the literature review, a continued interest

in this model exists, as commonalities across organizations occur for procurement and

organizational decision-making, the primary drivers within this study. Looking at the

various ways in which the TAM model can be applied, one must still do so with

investigative caution, as not all applications can be defined under the TAM context.

Hence the limitations of generalizability across all organizations as previously

mentioned, yet the furthered value contained within a given industry or usage

methodology (such as procurement systems). Therefore, the role of compatibility in

determining an individual professional’s acceptance behavior should likewise always be

considered in relation to the resulting corresponding perceptions.

As the primary components of the TAM model and framework, PU and EOU,

these factors have been postulated as fundamental determinants of individual technology

acceptance behavior. Social norm postulates from TRA (Ajzen & Fishbein, 1975) in

conjunction with additional compatibility from Rogers’ Innovation Diffusion theory

(Rogers, 1963) have reinforced their determining power as individual usage becomes

more and more mandatory in nature and users are professionals, thereby using such

determinants within industry. The furthered extensions of TAM by other theorists

throughout time since the original model formation have proven to be both relevant and
 34
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
applicable (Davis, 2000), a measure by which additional new research such as the study

here seeks to extend its scope.

The U.S. Automotive Industry–A Positive Trend

The U.S. Automotive Industry has signaled a resounding comeback from the

2008-2009 “Great Recession” as witnessed by the record levels of automobiles

purchased in 2015 and the general attitude of the American public shifting to a more

positive manner concerning the U.S. Treasury Department’s publically funded

automotive bailouts in 2009 (Pew, 2012). This industry has been historically cyclical in

nature, working within the ebbs and flows of consumer demand in conjunction with the

American economy, providing citizens with mobile freedoms to travel the country that

were first on display during the early 1900’s and were grown exponentially with the

President Eisenhower-era Interstate Highway System, while likewise declining during

the 1970’s American oil crisis and corresponding inflation (Ingrassia, 2008). Such a

detailed examination of the cyclical nature of this industry is apparent when examining

annualized U.S. automotive industry sales from the past forty years (as seen in Figure 2).
 35
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

U.S. Vehicle Sales, 1975 to 2015

20,000,000
18,000,000
16,000,000
14,000,000
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
0
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
2013
2015
Figure 2: U.S. Vehicle Sales, 1975 - 2015

Source: Ward’s Auto (2016). “U.S. Vehicle Sales, 1975-2015.”

As the U.S. automotive industry has risen and fell, its corresponding suppliers

have followed suit, as over half of the automotive supplier industry were in bankruptcy

danger within the 2008-2009 timeframe (Bailey, 2009). This industry had many

examples of Tier 1 Suppliers going into bankruptcy during the 2000s (see Figure 3) that

furthered both the numbers of unemployed in our country and in our state, figures that

are only recently showing a trend upward, yet not to the level previously seen pre-auto

bailout (Hill, 2014).

 36
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Figure 3: Major Tier 1 automotive supplier bankruptcies, 2001-2009

Source: Hill, K. (2010). Contribution of the automotive industry to the economies of all
fifty states and the United States. Center for Automotive Research, 21.

By examining the fiscal impact, regionally, in terms of areas such as the Midwest

and the South within the United States of America, and then collectively reviewing the

overall national reach, one can further understand the economic importance of this

industry to our nation as a whole. Regionally, the state that has been historically (and

continues to be) most economically impacted by the automotive industry is Michigan

(Hill, 2010). Extrapolating this local perspective to a national one, according to the

Center for Automotive Research (CAR), the auto industry historically contributes 3–3.5

percent to the overall United States’ Gross Domestic Product (GDP) along with the

following additional fiscal measures (CAR, 2015). The industry directly employs more
 37
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
than 1.7 million people engaged in designing, engineering, manufacturing, and

supplying parts and components to assemble, sell, and service new motor vehicles.

Approximately 4.5 percent of all U.S. jobs are supported by the strong presence of the

auto industry in the U.S. economy. People in these jobs collectively earn over $500

billion annually and generate more than $70 billion in tax revenues (Hill, 2014). In

addition, from an investment perspective, American automotive companies spend an

average of $1,200 per vehicle toward research and development funding (Hill, 2014), a

figure that helps to aim this industry in an innovative path. Rogers (2003) has described

that, “…innovators and early adopters have favorable attitudes toward new ideas and

more actively search for innovations. They also possess more resources and thus can

adopt higher-cost innovations that later adopters cannot afford” (p. 457). As this

industry has proven its importance over time to be a major economic component of the

United States’ economy, this study was likewise performed to add to the collective body

of knowledge for researchers and industry members alike.

Through this literature review, several concepts were introduced to the reader,

including the innovative organizational model addressed through TAM, the usage of

information systems (IS) within organizations, and the continued value of the U.S.

automotive industry within our nation. As this study focused on the U.S. automotive

industry supply base, specifically those associative factors that affect the adoption of e-

SCM procurement systems, an item that warrants further investigation is the usage and

corresponding adoption of e-SCM systems within other organizational functions, such as

design or product engineering. As it is not clear what factors affect the implementation

of such e-SCM systems within the engineering function within the original equipment
 38
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
supply base within the U.S. automotive industry, there exists a divide in the research.

Therefore, it is through additional research that can be performed to help address this is

needed to close this gap and add to the collective body of knowledge in this area.
 39
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
Chapter III–Methodology

Research Design

This descriptive research study was conducted using a questionnaire given

electronically to practitioners in the field, gathered from various levels within the

automotive supply chain being prospective and eventual final respondents. This

includes purchasing, engineering, and related personnel directly employed by the

automakers as well as their direct suppliers (e.g., “Tier 1 suppliers”, “Tier 2 suppliers”).

Collectively, this group is referred to as the automotive supply chain.

Population, Measurement, and Sample

The overall survey population for this study was based on various pertinent

automotive industry associations of which the researcher is a practicing member, e.g.,

SAE, ISM, AIAG, OESA, SME. Recent data from the Bureau of Labor Statistics shows

that current U.S. automotive industry employment is greater than 674,000 (2013). From

this group, approximately 35,000 are employed in positions related to supply chain

management (Institute for Supply Management, 2014). From this figure, the prospective

survey pool included those employed within the United States automotive industry

supply chain, selected via convenience sampling from among those who are members of

the automotive industry via professional affiliation (i.e., SAE, ISM, SME, AIAG,

OESA). A convenience sampling of 80 prospective respondents were selected from

each of the five listed professional organizations, resulting in a collective initial sample

size of 400 individuals. From this sample group of 400 prospective total respondents,

email requests were then sent out to all potential survey respondents, using their

professional email addresses (based on individual company/organization).

 40
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Instrument Development

The survey instrument for this study was based on a prior study (and

corresponding previously validated survey instrument) that focused on the TAM

framework of technology acceptance and was distributed to a prospective sample that is

reflective of those individuals who meet pre-established pertinent qualifications, i.e.,

industry personnel employed in a position involving the supply chain management

aspects of their organization. Davis’ original TAM study survey instrument was adapted

for this study by way of specificity to e-SCM procurement systems. Those survey

questions from Davis that addressed an “IS System” was replaced with nomenclature

that addressed an “e-SCM procurement system.” A survey pretest (pilot study) was

given to a smaller sample (ten) of those industry subject matter experts, so as to verify

content validity for this given industry type (automotive industry) sample as well as to

review survey length. It is based on this initial pilot study and corresponding subject

matter expert responses that the original TAM survey was adapted for the purposes of

this specific study and also shortened to its final length.

The validation of the original finalized survey (which was partially replicated

here) was validated using two main steps: first, exploratory factor analysis (EFA), in

order to establish the validity of the survey instrument, and secondly, simple linear

regression techniques for both content and construct validity (Davis, 1985). As an

additional measure of internal reliability, the original finalized survey was tested using

Cronbach’s Alpha (α) (Davis, 1985).

After the pilot study and completion of the final survey instrument, this
 41
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
instrument was likewise tested using Cronbach’s Alpha (α), prior to the distribution of

this specific study’s final survey. This is due to the fact that α generally increases as the

intercorrelations among the survey test responses increase (Santos, 1999).

Human Subjects Approval

Lastly, as this study involved collecting data from human subjects, a “Request

for Human Subjects Approval Form” was submitted with the corresponding process

controls and was then summarily approved for this study via the Eastern Michigan

University Graduate School. This approval letter is located in Appendix A within this

document.

Data Collection and Final Population

Using a sample size of 400 individuals in this group, email requests went out to

all potential survey respondents. Upon the initial contact, 97 potential respondents were

deemed to have incorrect email addresses, for reasons such as “did not work at that

organization anymore” or “company no longer exists.” Using Archer’s (2005) study and

corresponding schedule for prospective respondent follow ups, his study concluded that

reminders sent on day seven of the survey produced the largest increase in responses.

The study also recommended using three total contacts with the respondents that

includes: initial invitation, first reminder, and final reminder. These guidelines as

established by Archer (2005) were likewise followed for this study, resulting in the

study’s final survey responses. This survey was administered to the potential sample

participants in an electronic web-based format, using SurveyMonkey survey software.

Based on this distribution and follow-up information, the collected completed survey

response rate was approximately 48% or 144 respondents (out of 303 total potential
 42
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
survey respondents).

Characteristics of the Survey Instrument

The instrument provided an introduction to potential respondents by stating the

purpose of the study, explaining both confidentiality and risks, informing prospective

respondents of voluntary participation, acknowledgement of the Eastern Michigan

University Human Subjects Review Board review and approval, and the offer of an

incentive for participation, which included a copy of the final statistical report (if

requested by the respondent). The instrument consisted of four separate sections,

utilizing the technology acceptance model as its underlying theme. Section 1 reviewed

the perception of the ease of system use while Section 2 sought perceptions concerning

perceived usefulness from prospective respondents based upon the usage of e-SCM

procurement systems within each respondent’s corporation. These initial two sections

were assumed to be independent of one other. Section 3 included individual respondent

demographics. Sections 1 and 2 utilized a five point Likert-type scale to capture

respondent perceptions. The scale anchors included: strongly disagree, disagree, neither

agree nor disagree (no opinion), agree, and strongly agree. The measuring instrument is

located within Appendix B. Section 4 included the conclusion section of the survey

instrument, which provided the respondents with an opportunity to add comments, the

opportunity to request a summary of survey results, and the contact information of the

researcher.

Data Analysis

The completed surveys were collected and the corresponding individual question

responses likewise tabulated and coded within Excel for statistical review purposes.
 43
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
Using these question results, standard descriptive statistical analyses were then

performed using Excel, while examining the results for trends and/or outliers, assuming

normally-distributed data.

The statistical analysis of the research data included initial coding and marking

of the survey data with standard calculations for mean, mode, median and standard

deviation along with skewness and kurtosis for descriptive statistical analysis. Further

statistical analysis included looking for trends and/or outliers within the data, assuming

normally-distributed data. Lastly, statistical analysis of the data collected was also

reviewed for Kurtosis and Skewness, measures that assist in determining corresponding

normalcy. Because the survey contains questions previously validated using regression

analysis, further investigation of the inferential aspects of the collected data and the

research instrument were performed by means of internal reliability via Cronbach’s

Alpha (α). As such, these examinations further investigate the correlations between the

potential factors within the automotive industry. Lastly, as a major determinant

utilizing additional statistical analyses, P-value calculations and correlation analyses

were performed via Spearman’s Rho (ρ) Rank Correlation Coefficients in order to test

these hypotheses, as they utilized ordinal data (as in H1 through H4) for hypothesis

testing and corresponding validation.

Qualifications of the Researcher

The researcher has obtained a Bachelor of Science degree in Mechanical

Engineering (Minor in English) from the School of Engineering and Computer Science

at Oakland University in Rochester, Michigan, an ABET-accredited program. After

completion of this undergraduate degree, he then initiated his professional career within
 44
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
the U.S. automotive industry at Ford Motor Company. As such, the researcher’s

professional career has now spanned over twenty years in various technical and

management positions within the U.S. automotive industry supply chain, via Tier 1

suppliers and below. He is currently employed within the U.S. automotive industry at a

Top 50 Tier 1 automotive supplier located in Metropolitan Detroit. During his

professional career he has also completed a Master’s of Science degree in

Administration with a concentration in Industrial Management from Central Michigan

University in Mount Pleasant, Michigan. Current and previous academic experience

includes adjunct professor positions at Lawrence Technological University, Ferris State

University, and Concordia University (MI) within industrial technology and business

management curricula.

Materials. Standard office supplies such as paper, envelopes, and file folders

were used throughout the research work. Additional materials included printed

corresponding journal articles and other referenced resources. In addition, supplemental

research files were kept via electronic media, with respondents being able to request

final completed studies. Likewise, keeping respondent confidentiality was paramount.

Equipment. A personal computer with corresponding survey software

(“SurveyMonkey” software) was used to prepare the questionnaires for the survey that

were sent electronically to potential respondents. In addition, corresponding statistical

analyses were also performed using Microsoft Excel statistical software, with additional

software by means of Microsoft Word and Powerpoint for text and presentation

capabilities, respectively.
 45
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
Facilities. Several libraries, including Eastern Michigan University’s Halle

Library, the Concordia University Library, the Howell Carnegie Library, and the

Oakland University Kresge Library provided the physical sites for much of the gathered

research, with additional professional resources (i.e., industry association journals,

industry statistics, professional industry association resources) were used for collecting

the data for the research work.

Personnel. No additional support personnel were needed for this research, as all

research was performed by the researcher, utilizing survey feedback and corresponding

data collection from automotive industry professionals gathered by means of industry

associations. Continuous professional experience and current industry associations of

the researcher aided in the compilation of potential respondents with the association of

being automotive industry practitioners.

Research Methodology Summary

The initial chapters of this research study and corresponding methodology

provided a short introduction to the growing and streamlined nature of today’s U.S.

automotive industry with respect to its supply chain and the usage of e-SCM

procurement systems in alignment of that same goal. Also described was a need to help

facilitate a greater role in providing potential strategic advantages such as advanced

technologies in supply chain management. Using such technologies can help

organizations in this industry to become and maintain a leadership role in the highly

competitive global marketplace. Automotive manufacturing in the United States has

become a very cost-driven process that needs advanced technologies applied throughout

its entire supply chain and corresponding process flow in order to best optimize the
 46
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
potential and kinetic advantages throughout. This study has analyzed what factors aid in

the adoption of such needed technologies in this industry with recommendations for

further investigation.

This study was purposely focused to review those factors that are associated with

the adoption of electronic procurement systems within the U.S. automotive industry. It

is through the distribution, collection, and statistical analysis of a pre-established,

content-validated survey instrument to those within the automotive industry that was

designed to review these factors. Once collected and data tabulated, corresponding

statistical techniques such as t-tests have further investigated the correlation of these

factors. These were completed by using comparisons of means of the resulting data per

each question within the survey instrument as proposed in the original research.

Likewise, as performed in the original research, statistical analysis by means of P-values

and Spearman’s Rho correlations (used for ordinal data) were completed and reviewed

for better understanding of the overall hypotheses raised and summarily found to be both

significant and likewise supported for Hypotheses 1, 2, and 4, with the lack of

correlation of Hypothesis 3 concerning company (organization) size when examining

size based on number of employees and corresponding e-SCM procurement system

adoption. Inversely, Hypothesis 3 is supported when examining company size based on

annualized sales and corresponding e-SCM procurement system adoption. It is this

researcher’s hope that this study will be beneficial to all organizations within the

automotive supply chain and can be used to determine whether or not to adopt electronic

supply chain management (e-SCM) procurement systems within their own

organizations. It is by means of a focus to the future that the resulting professional and
 47
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
academic desire of the researcher that this study and its corresponding results have been

compiled into a summary that will be available to all those who fully participated in the

survey process. This study is also available to others in academia, industry, as well as

others who want to learn more concerning this topic as a basis for future research, an

important point that is further discussed in Chapter V.

 48
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Chapter IV–Analyses and Results

The purpose of this chapter was to review and share the results of the analyses of

the survey responses collected from the respondents. In addition, the results derived

from the survey respondents in this study were used to help delineate the research

questions and the corresponding hypotheses that this study intended to answer. The

chapter was organized using the following headings: characteristics of the instrument,

descriptive statistics for demographics, descriptive statistics for the factors, results for

hypotheses testing, and lastly, a corresponding summary of the findings.

This study was devised with the intention of furthering the body of knowledge

concerning the U.S. automotive industry, an industry that, much like manufacturing

within our country domestically, has seen highs and lows in terms of overall economic

impact, domestically and internationally (National Association of Manufacturers, 2014).

Based on prior model development concerning technology acceptance (Davis, 1985) and

innovation adoption (Rogers, 1963), respectively, a survey instrument was initially

derived and pilot tested by being administered to a small group of automotive industry

practitioners. Based on results of the pilot testing, the resulting survey was shortened

and then distributed to prospective respondents for final distribution by means of

SurveyMonkey® software. The final survey instrument was then tested for internal

reliability via the Cronbach’s Alpha technique. The reliability (internal consistency) of

the items comprising each dimension (construct) within the final field test (final survey

instrument) was examined using Cronbach’s Alpha. Following the guideline established

by Nunnally (1978), an alpha score of higher than 0.70 is generally considered to be

 49
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
acceptable. Within this study, when examining the variables measured, each of the

corresponding individual Alpha scores were 0.925, 0.928 and 0.907. When looking at

the aggregate for Cronbach’s Alpha, this results in a mean Alpha score that was

calculated to be 0.92, further verifying reliability of the final survey instrument.

Data were then collected via SurveyMonkey into an Excel® format with initial

coding taking place for the collected data, taking great care in the continuance of

maintaining respondent anonymity and corresponding confidentiality. Prior to data

gathering, an analysis of pertinent web-based survey techniques was reviewed, with a

standard protocol chosen to be mirrored in this study (Archer, 2005). Using this

technique (Archer, 2005) to reach out to prospective respondents, the researcher tracked

the timing and follow up necessary in collecting the full study data. As part of the data

gathering, an analysis concerning the return rate and subsequent re-sending in order to

complete the full data set was examined and, as such, a similar pattern was determined

that was interestingly similar to that of the Innovation Adoption model from Rogers

(1963) as shown in Table 1. Following a pattern much like Rogers’ initial innovation

adoption model, data were completed by respondents in a similar distribution, whereas

initial respondents could be considered “Innovation Adopters”, with following

responders shifting into similar categories (“Mainstream adopters” and “Later

adopters”), with final responders creating a “Laggards” category of analysis. Based on

these categories, the initial respondents of the survey were of a larger quantity than what

would be statistically categorized as “innovators” (“those first to adopt a new technology

or innovation”), with the later categories following suit in relation to the trends in

percentages to Rogers’ likewise analysis (see Table 1 below).

 50
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Table 1.
Respondent Group Categories Based on Timing–Diffusion of Innovations
Group Category e-SCM Study Response Frequencies*

Innovators (2.5%) (9.0%) – Response within 1 week of survey distribution

Early Adopters (13.5%) (19.4%) – Response within 2 weeks of survey distribution

Early Majority (34%) (31.9%) – Response after follow up email and 3 weeks of
survey distribution
Late Majority (34%) (27.1%) – Response after follow up email and 4 weeks after
survey distribution

Laggards (16%) (12.5%) – Response after 1 month and two follow-up emails

Note: *This refers to the respondents and the amount of each category based on the
frequency and order in which they responded to the survey request(s) at their respective
companies, following the web-based survey protocol established by Archer (2005).
Total respondents (n=144) within full survey collection.

Per Rogers (2003), the stages by which a person adopts an innovation, and

whereby diffusion is accomplished, include awareness of the need for an innovation,

decision to adopt (or reject) the innovation, initial use of the innovation to test it, and

continued use of the innovation. There are five main factors that influence adoption of an

innovation, and each of these factors is at play to a different extent in the five adopter

categories.

1. Relative Advantage-The degree to which an innovation is seen as better

than the idea, program, or product it replaces.

2. Compatibility-How consistent the innovation is with the values,

experiences, and needs of the potential adopters.

 51
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
3. Complexity-How difficult the innovation is to understand and/or use.

4. Triability-The extent to which the innovation can be tested or

experimented with before a commitment to adopt is made.

5. Observability-The extent to which the innovation provides tangible

results.

It is both interesting and pertinent to see the overall distribution as it relates to the

final respondent categories and the time they took in responding back with completed

surveys. Much like Rogers’ analysis concerning the diffusion of innovations (1963), the

study here concerning the “innovation” of e-SCM procurement systems utilized within

the U.S. automotive industry had witnessed survey respondents following in a similar,

normal pattern. Table 1 shows the corresponding categories from Rogers’ work in

comparison to the survey respondents from this study, with an overall similar response

rate trend toward each of the identified group categories. From an overall industry

perspective, the U.S. automotive industry and its corresponding supply chain provides

the “diffusion” of the innovation or innovative process by means of the usage of e-SCM

procurement systems within a given organization. Furthermore, this it is through the

“Innovation-Decision Process,” or “the process through which an organization passes

from first knowledge of an innovation [here, it is e-SCM procurement systems] to

forming an attitude (or perception) toward the innovation, to a decision to adopt or reject

the innovation, to implement and use the new innovation with confirmation of this

decision” amongst others within the organization (Rogers, 2003, p. 475). This process

succinctly describes an automotive supplier’s realization and eventual adoption (or

rejection) of an e-SCM procurement system within the U.S. automotive industry supply
 52
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
chain and corresponding usage of such a system within their organization. To further the

comparison to this industry and those that are “innovators”, Rogers (2003) had described

that, “…innovators and early adopters have favorable attitudes toward new ideas and

more actively search for innovations. They also possess more resources and thus can

adopt higher-cost innovations that later adopters cannot afford” (Rogers, 2003, p. 457),

an important point to clarify, as resources that are necessary, are available in the U.S.

automotive industry.

Further analysis occurs when examining the resulting data against the backdrop

of demographic categories. An overall analysis of each measurement question follows

with furthered discussion pertaining to specific demographic results and corresponding

review. Such a review helps to examine, in detail, the gathered corresponding

demographic results with an eye toward trends and further understanding as it relates to

application within the U.S. automotive industry and its corresponding supply chain. In

addition, based on the research questions and corresponding hypotheses proposed by the

researcher, research-based demographics collected via the surveys collected and

investigated helped to analyze both the third and fourth listed hypotheses, concerning

overall organization size and respondent gender.

The following section reviews in detail the quantitative means of each individual

collected respondent survey question. Further analysis of these means includes a

comparison of response means using the t-test statistic, for, “…in general, when

comparing two means, the t-test is used” (Fowler, 2009, p. 54). As such, the individual
 53
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
survey question responses will be subsequently reviewed in the following section

(Chapter IV).

Descriptive Statistics for Demographics

When examining the data contained within Table 2 (below) concerning

respondent organizational department, one can see that the survey distribution was

concentrated primarily amongst purchasing, engineering, sales, and manufacturing

personnel, those positions that within the automotive supply chain that interact

predominantly with both “up-level” customers (OE level) as well as “down-level”

suppliers (located further down the Tier level) whose production is dependent on up-

level suppliers. This departmental distribution amongst final survey respondents is

important within the automotive industry, and likewise should have been expected from

a practical standpoint.

Table 2:

Organizational Department.

Number of
Organizational Department Respondents Percentage

Purchasing/Procurement 37 25.7%
Engineering/Design 47 32.6%
Sales/Marketing 24 16.7%
Manufacturing/Production 9 6.3%
Human Resources 2 1.4%
Accounting/Finance 3 2.1%
Information Technology 2 1.4%
Quality/Inspection 9 6.3%
All Other, Including Executives 11 7.6%
 54
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
Table 3 (below) corresponds with respondent experience level based on years of

professional industry employment, this study utilized surveys from experience-leaden

employees, with over 75% of the respondents having five years or more of experience,

further providing merit to responses. In addition, this industry continues to have a wider

distribution or spread of experience amongst its workforce, especially in the post-2009

recession that reduced the overall number and percentage of many experienced

professionals through employee layoffs and forced early retirements, both at the OEM

(vehicle manufacturer) and Tier1 supplier level (Hill, 2010). As such, from an

experience standpoint, this study had an overall average respondent tenure directly

between 10 to 15 years.

Table 3:

Years of experience.

Years with Organization Number of Respondents Percentage

Less than 1 year 12 8.3%

1 to 3 years 12 8.3%
3 to 5 years 12 8.3%
5 to 10 years 37 25.7%
10 to 15 years 26 18.1%
15 to 20 years 18 12.5%
20 or more years 27 18.8%

As the need for furthered education (beyond secondary education) continues in

our global economy of today, it is further reflected in STEM-based industries such as the

automotive industry. As such, this point was further reflected in this study, as it was

completed with an overwhelming majority (96.5%) of respondents having an education

 55
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
level beyond high school (see Table 4, below). This, too, is a shift in the automotive

industry since the 2008-2009 recession, as many positions (such as manufacturing

supervisor, computer-based designer, etc.) that previously didn’t need a degree to

perform the position are now required to have such an entry-level education (CAR,

2016).

Table 4:

Education level.

Education Number of Respondents Percentage

High school 5 3.5%

Some College 5 3.5%
Associates Degree 10 6.9%
Bachelors Degree 72 50.0%
Masters Degree 37 25.7%
Doctorate 12 8.3%
Professional Degree 3 2.1%

An additional aspect of the automotive industry comes from the examination of

gender within the ranks of those employed. Often a male-dominated arena, the

automotive industry has recently seen examples of female high-ranking executives such

as Mary Barra, the CEO of General Motors and Toyota’s first senior executive, Julie

Hamp, who was appointed group vice president and chief communications officer

(Levin, 2015). Unfortunately, the U.S. automotive industry has had a dearth of women

within its ranks, an underrepresented group much like other STEM-fields (Science,

Technology, Engineering and Math) such as female educators within Industrial

 56
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
Technology (Kasi & Dugger, 2000). As this study received such a low percentage of

women respondents (see Table 5 below), it was indicative of the automotive industry

population as a whole, the survey target population.

Table 5:

Respondent Gender

Gender Number of Respondents Percentage

Male 124 86.1%

Female 20 13.9%

Based on the research data collected, there were respondents from automotive

suppliers of all various sizes in terms of number of employees (see Table 6, below).

This helped to distribute the corresponding data collected across automotive supplier

ranks, from small to large and those in-between in terms of number of employees within

the organization. This distribution also helps to show that the automotive supply chain

consists of a wide array of companies whose resources internally are likewise varied.

Table 6:

Company size (Based on number of employees)

Number of Employees* Number of Respondents Percentage

Under 100 employees 20 13.9%

100 to 500 14 9.7%
501 to 1000 13 9.0%
1001 to 5000 23 16.0%
 57
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

5001 to 9999 9 6.3%

10,000 to 15,000 13 9.0%
15,001 to 25,000 25 17.4%
25,001 or more 27 18.8%
Note: *This refers to the number of employees at the respondent’s respective company.

Based on the research data collected, there were respondents from automotive

suppliers of all various sizes in terms of fiscal size (see Table 7 below, company size

based on annualized sales). This helped in gathering data across a wide distribution

across automotive supplier ranks, from small to large and those in-between in terms of

number of overall annualized sales for the organization. This distribution correlates to

the likewise seen above distribution in terms of number of employees for respondent

organizations.

Table 7:

Company Size (based on annualized sales)

Corporation Income Number of Respondents Percentage

Less than $500K 5 3.5%

$500k to $1MM 0 0.0%
$1MM to $10MM 10 6.9%
$10MM to $50MM 22 15.3%
$50MM to $100MM 10 6.9%
$100MM to $1B 39 27.1%
$1B to $5B 27 18.8%
$5B to $10B 11 7.6%
Over $10B 11 7.6%
 58
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
Based on automotive supplier type (see Table 8, below), this study primarily

examined Tier 1 and 2 suppliers, those who are most directly influenced by the U.S.

OEM automakers such as GM, Ford, and Chrysler. Additional future studies can be

further focused, requesting information concerning the types of systems or components

that the respondent’s company produces. Examples of this would include studies

specific to powertrain or braking system suppliers.

Table 8:

Automotive Supplier Type

Employer Type Number of Respondents Percentage

Tier 1 (Direct Supplier to OEM) 79 54.9%

Tier 2 38 26.4%
Tier 3 13 9.0%
Tier 4 or below 7 4.9%
Non-Direct supplier to Auto -OEM
Industry 7 4.9%

When reviewing the respondent organizations in terms of e-SCM software, an

overwhelming majority currently utilize such software (see Table 9 below). An

additional question that may be asked for future studies would include: (for those

companies who don’t already have such a system implemented in their organization

currently) if their organization is looking at implementing an e-SCM software package

within their company in the near-term future, with various timeframes given as to when

their company will implement such systems internally.

 59
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
Table 9:

Current Usage

Does organization currently use Number of

e-SCM procurement software ? Respondents Percentage

Yes 112 77.8%

No 32 22.2%

Results for Hypothesis Statement 1

Examining Tables 10 and 11 show the collective data corresponding to

Hypothesis 1 – the decision to use an e-SCM procurement technology system has a

significant positive association with ease of system use (EOU). From a correlation

standpoint, the use of Spearman’s Rho was beneficial as this survey utilized ordinal data

(via the five point Likert scale to measure respondent attitude) and collectively had an

average mean value of 0.715, showing a strong positive correlation. Likewise, the

average of the mean values for each corresponding question in the instrument related to

H1 was 3.19, another strong value to support this hypothesis. P-value analysis also

provided additional validation of Hypothesis 1 concerning the positive correlation of

perceived ease of use for an organization as being a strong positive correlation to

automotive organizations determining to adopt such systems internally. Values for

skewness and kurtosis were in the acceptable values to consider the test to be relatively

symmetric with a smaller offset from data being in the “ideal” normal range.
 60
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
Table 10:
Descriptive Statistics for H1

H1 Descriptive
Code Question Mean Std. Median Mode Skewness Kurtosis
Dev.
PU10 I use e-Supply Chain Management
(e-SCM)/e-Procurement systems as 3.24 0.99 3 4 -0.55 -0.04
often as needed.
PU11 In order to better interact with my
OEM/Tier 1 customers, I use e-
Supply Chain Management (e- 2.92 1.10 3 3 -0.23 -0.65
SCM)/e-Procurement systems
frequently.
PU12 To the extent possible, I use e-
Supply Chain Management (e-
2.94 1.02 3 3 -0.28 -0.52
SCM)/e-Procurement systems
frequently.
EOU1 Using the e-Supply Chain
Management (e-SCM)/e-
Procurement system in my job 3.27 1.01 4 4 -0.65 -0.21
enables me to accomplish tasks
more quickly.
EOU5 Using e-Supply Chain Management
(e-SCM)/e-Procurement systems 3.28 1.06 4 4 -0.70 -0.26
make it easier to do my job.
EOU6 I find the e-Supply Chain
Management (e-SCM)/e-
3.38 0.99 4 4 -0.90 0.29
Procurement system useful in my
job
EOU7 Learning to operate the e-Supply
Chain Management (e-SCM)/e-
3.38 0.99 4 4 -0.92 0.31
Procurement system was easy for
me.
EOU8 I find it easy to get the e-Supply
Chain Management (e-SCM)/e-
3.27 0.91 3 3 -0.17 0.38
Procurement system to do what I
want it to do.
EOU9 My interaction with the e-Supply
Chain Management (e-SCM)/e-
3.05 0.85 3 3 0.19 -0.31
Procurement system is clear and
understandable.
EOU10 I find the e-Supply Chain
Management (e-SCM)/e-
2.89 0.88 3 3 0.09 0.32
Procurement system to be flexible
in operation.
EOU11 It was easy for me to become
skillful at using the e-Supply Chain
3.26 0.85 3 3 -0.67 0.74
Management (e-SCM)/e-
Procurement system.
EOU12 I find the e-Supply Chain
Management (e-SCM)/e- 3.43 0.80 3 3 -0.35 0.72
Procurement system easy to use
 61
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Table 11:

Correlational Statistics for H1

H1 Correlation (Spearman’s Rho)

EOU1 EOU5 EOU6 EOU7 EOU8 EOU9 EOU10 EOU11 EOU12

PU10-12
0.716 0.816 0.802 0.731 0.615 0.607 0.682 0.687 0.782

Results for Hypothesis Statement 2

When examining the data for the Hypothesis 2 – that the decision to use an e-SCM

procurement technology system has a significant positive association with organizational

internal usefulness, or Perceived Usefulness (PU) as being a factor with a positive

correlation toward organizations adopting e-SCM procurement systems within their

organization, the researcher used a statistical tool known as the Spearman’s Rho

correlation coefficient. This statistical tool was chosen as the data being analyzed was

ordinal in nature, based on the five-point, equally weighted attitude measurement Likert

scale for respondents. It is through the use of the Spearman’s Rho calculation

coefficient and performing the Spearman’s Rho calculation (the average Rho equals to

0.678) better investigate the correlation of perceived usefulness (PU) as a factor in

organizations determining to implement e-SCM procurement systems, there is a strong

positive correlation, or validation to such a hypothesis. P-value analysis also provided

additional validation of Hypothesis 2 concerning the positive correlation of perceived

usefulness as being a strong positive correlation to automotive organizations determining

 62
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
to adopt such systems internally. Values for skewness and kurtosis were in the

acceptable values to consider the test to be relatively symmetric with a smaller offset

from data being in the “ideal” normal range, although PU7 showed highest skewness and

kurtosis values, showing this particular question’s higher deviation from symmetry.

Table 12:

Descriptive Statistics for H2

H2 Descriptive
Code Question Mean Std. Median Mode Skewness Kurtosis
Dev.
PU10 I use e-Supply Chain
Management (e-SCM)/e-
3.24 0.99 3 4 -0.55 -0.04
Procurement systems as often as
needed.
PU11 In order to better interact with
my OEM/Tier 1 customers, I use
e-Supply Chain Management (e- 2.92 1.10 3 3 -0.23 -0.65
SCM)/e-Procurement systems
frequently.
PU12 To the extent possible, I use e-
Supply Chain Management (e-
2.94 1.02 3 3 -0.28 -0.52
SCM)/e-Procurement systems
frequently.
PU2 Using e-Supply Chain
Management (e-SCM) systems
3.47 0.88 4 4 -0.35 0.11
improve my department’s
effectiveness.
PU3 Using e-Procurement/e-Supply
Chain Management systems
allow my department to 3.34 0.92 4 4 -0.68 0.10
accomplish tasks critical to the
organization.
PU4 Using e-Supply Chain
Management (e-SCM)/e-
3.41 0.89 4 4 -0.60 0.41
Procurement systems allow my
department to reduce costs.
PU5 Using e-Supply Chain
Management (e-SCM)/e-
3.21 0.79 3 3 -0.39 0.92
Procurement systems help my
department meet staffing goals.
 63
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
PU6 Using e-Supply Chain
Management (e-SCM)/e-
Procurement systems makes it 3.40 0.93 4 4 -0.66 0.43
easier to perform my
departmental functions.
PU7 In general using e-Supply Chain
Management (e-SCM)/e- 3.67 0.78 4 4 -0.83 1.17
Procurement systems are useful.
EOU2 Using the e-Supply Chain
Management (e-SCM)/e-
3.26 0.95 3 4 -0.50 -0.09
Procurement system improves
my job performance.
EOU3 Using the e-Supply Chain
Management (e-SCM)/e-
3.25 0.99 3 4 -0.65 -0.13
Procurement system in my job
increases my productivity.
EOU4 Using the e-Supply Chain
Management (e-SCM)/e-
3.23 0.98 3 4 -0.61 -0.07
Procurement system enhances
my effectiveness on the job.

Table 13:

Correlational Statistics for H2 – Perceived Usefulness

H2 Correlation (Spearman’s Rho)

PU2 PU3 PU4 PU5 PU6 PU7 EOU2 EOU3 EOU4

PU10, 11,
0.605 0.594 0.586 0.608 0.592 0.668 0.845 0.799 0.801
12

Results for Hypothesis Statement 3

When examining the data for Hypothesis 3, which states that “the larger the

organization, the more apt or greater acceptance it is to utilize an e-SCM procurement

technology system within their organization”, the researcher used a statistical

examination of the resulting means from the resulting survey questions for each of the

company size demographics. As one can see by examining the data in Tables 14-21,

there are not large differences between the average of means for company size, negating
 64
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
the hypothesized larger companies having more acceptance in adopting e-SCM

procurement systems than those for smaller companies (and those in between as well).

P-value analysis also provided additional little to no support of Hypothesis 3 concerning

the concept that the larger the organization, the more apt or greater acceptance it is to

utilize an e-SCM procurement technology system within their organization automotive

organizations determining to adopt such systems internally. Values for skewness and

kurtosis were wider ranging, with many acceptable values to consider the test to be less

symmetric with a larger offset from data being in the “ideal” normal range. Of the

questions covering Hypothesis 3, survey question PU9 in Table 17 showed by far the

highest skewness and kurtosis values, -2.28 and 4.77, respectively, which in turn showed

this particular question’s higher deviation from symmetry (skewness), with large tailness

or Kurtosis, potentially also ruling out this question against the others within the

instrument for this respondent group.

Table 14:

Descriptive Statistics for H3 – Organization Size

H3: Annual revenue less than $500,000

Std.
Code Question Mean Dev. Median Mode Skewness Kurtosis
PU 8 I like using e-Supply Chain
Management (e-SCM)/e-
Procurement systems.
3.4 0.89 4 4 -1.3 0.3

PU9 Using e-Supply Chain Management

(e-SCM)/e-Procurement systems is
in general a good idea.
4.0 0.71 4 4 0.0 2.0

PU10 I use e-Supply Chain Management

(e-SCM)/e-Procurement systems as
often as needed.
2.6 1.82 2 1 0.6 -2.2
 65
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
PU11 In order to better interact with my
OEM/Tier 1 customers, I use e-
Supply Chain Management (e-
SCM)/e-Procurement systems
2.6 1.67 3 1 0.5 -0.6
frequently.

PU12 To the extent possible, I use e-

Supply Chain Management (e-
SCM)/e-Procurement systems 2.4 1.52 2 1 0.3 -3.1
frequently.

Table 15:

Descriptive Statistics for H3 – Organization Size

H3: From $1 Million to $10 Million

Std.
Code Question Mean Dev. Median Mode Skewness Kurtosis
PU 8 I like using e-Supply Chain
Management (e-SCM)/e-
Procurement systems.
3.5 1.29 4 4 -0.7 -0.4

PU9 Using e-Supply Chain Management

(e-SCM)/e-Procurement systems is
in general a good idea. 3.5 1.29 4 4 -1.0 -0.1

PU10 I use e-Supply Chain Management

(e-SCM)/e-Procurement systems as
often as needed.
3.4 1.12 4 4 -0.9 0.8

PU11 In order to better interact with my

OEM/Tier 1 customers, I use e-
Supply Chain Management (e-
SCM)/e-Procurement systems
3.0 1.18 3 4 -0.9 -0.6
frequently.

PU12 To the extent possible, I use e-

Supply Chain Management (e-
SCM)/e-Procurement systems 3.3 1.27 4 4 -1.0 0.3
frequently.

Table 16:

Descriptive Statistics for H3 – Organization Size

H3: From $10 Million to $50 Million

Std.
Code Question Mean Dev. Median Mode Skewness Kurtosis
 66
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
PU 8 I like using e-Supply Chain
Management (e-SCM)/e-
Procurement systems.
3.5 0.74 4 4 -0.39 -0.02

PU9 Using e-Supply Chain Management

(e-SCM)/e-Procurement systems is
in general a good idea.
3.8 0.61 4 4 0.14 -0.29

PU10 I use e-Supply Chain Management

(e-SCM)/e-Procurement systems as
often as needed.
2.9 1.06 3 4 -0.58 -0.82

PU11 In order to better interact with my

OEM/Tier 1 customers, I use e-
Supply Chain Management (e-
SCM)/e-Procurement systems
2.9 1.11 3 3 -0.73 -0.72
frequently.

PU12 To the extent possible, I use e-

Supply Chain Management (e-
SCM)/e-Procurement systems 2.7 0.94 3 3 -0.16 -0.75
frequently.

Table 17:

Descriptive Statistics for H3 – Organization Size

H3: From $50 Million to $100 Million

Std.
Code Question Mean Dev. Median Mode Skewness Kurtosis
PU 8 I like using e-Supply Chain
Management (e-SCM)/e-
Procurement systems.
3.3 0.82 3 3 0.81 1.24

PU9 Using e-Supply Chain Management

(e-SCM)/e-Procurement systems is
in general a good idea.
3.7 0.67 4 4 -2.28 4.77

PU10 I use e-Supply Chain Management

(e-SCM)/e-Procurement systems as
often as needed.
3.1 1.20 3 4 -0.23 -0.37

PU11 In order to better interact with my

OEM/Tier 1 customers, I use e-
Supply Chain Management (e-
SCM)/e-Procurement systems
3.0 1.25 3 4 0.00 -0.91
frequently.
 67
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
PU12 To the extent possible, I use e-
Supply Chain Management (e-
SCM)/e-Procurement systems 2.7 1.06 3 3 -0.66 -0.41
frequently.

Table 18:

Descriptive Statistics for H3 – Organization Size

H3: From $100 Million to $1 Billion

Std.
Code Question Mean Dev. Median Mode Skewness Kurtosis
PU 8 I like using e-Supply Chain
Management (e-SCM)/e-
Procurement systems.
3.3 0.87 3 4 -0.97 1.37

PU9 Using e-Supply Chain Management

(e-SCM)/e-Procurement systems is
in general a good idea.
3.8 0.86 4 4 -1.14 2.56

PU10 I use e-Supply Chain Management

(e-SCM)/e-Procurement systems as
often as needed. 3.5 0.95 4 4 -0.85 1.06

PU11 In order to better interact with my

OEM/Tier 1 customers, I use e-
Supply Chain Management (e-
SCM)/e-Procurement systems
3.1 1.17 3 3 -0.29 -0.35
frequently.

PU12 To the extent possible, I use e-

Supply Chain Management (e-
SCM)/e-Procurement systems 3.1 1.07 3 3 -0.49 -0.15
frequently.

Table 19:

Descriptive Statistics for H3 – Organization Size

H3: Annual Revenue from $1 Billion to $5 Billion

Std.
Code Question Mean Dev. Median Mode Skewness Kurtosis
PU 8 I like using e-Supply Chain
Management (e-SCM)/e-
Procurement systems.
3.5 0.94 4 4 -0.94 1.87
 68
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
PU9 Using e-Supply Chain
Management (e-SCM)/e-
Procurement systems is in general 3.9 0.61 4 4 -0.95 2.91
a good idea.

PU10 I use e-Supply Chain Management

(e-SCM)/e-Procurement systems as
often as needed. 3.3 0.78 3 3 0.39 0.10

PU11 In order to better interact with my

OEM/Tier 1 customers, I use e-
Supply Chain Management (e-
SCM)/e-Procurement systems
2.8 1.03 3 3 0.02 -0.59
frequently.

PU12 To the extent possible, I use e-

Supply Chain Management (e-
SCM)/e-Procurement systems 3.0 0.91 3 3 0.00 -0.36
frequently.

Table 20:

Descriptive Statistics for H3 – Organization Size

H3: From $5 Billion to $10 Billion

Std.
Code Question Mean Dev. Median Mode Skewness Kurtosis
PU 8 I like using e-Supply Chain
Management (e-SCM)/e-
Procurement systems.
3.27 1.10 3 3 -0.65 0.69

PU9 Using e-Supply Chain Management

(e-SCM)/e-Procurement systems is
in general a good idea.
3.36 1.12 4 4 -0.89 0.81

PU10 I use e-Supply Chain Management

(e-SCM)/e-Procurement systems as
often as needed. 3.00 1.10 3 3 0.00 0.42

PU11 In order to better interact with my

OEM/Tier 1 customers, I use e-
Supply Chain Management (e-
SCM)/e-Procurement systems
2.64 1.36 3 3 0.23 -0.97
frequently.

PU12 To the extent possible, I use e-

Supply Chain Management (e-
SCM)/e-Procurement systems 2.55 1.21 2 2 0.69 0.29
frequently.

Table 21:

Descriptive Statistics for H3 – Organization Size

 69
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
H3: Over $10 Billion
Std.
Code Question Mean Dev. Median Mode Skewness Kurtosis
PU 8 I like using e-Supply Chain
Management (e-SCM)/e-Procurement
systems.
3.36 0.67 3 3 -0.59 -0.29

PU9 Using e-Supply Chain Management (e-

SCM)/e-Procurement systems is in
general a good idea. 3.82 0.60 4 4 0.03 0.41

PU10 I use e-Supply Chain Management (e-

SCM)/e-Procurement systems as often
as needed. 3.36 0.81 4 4 -0.85 -0.76

PU11 In order to better interact with my

OEM/Tier 1 customers, I use e-Supply
Chain Management (e-SCM)/e- 2.82 0.87 3 2 0.41 -1.62
Procurement systems frequently.

PU12 To the extent possible, I use e-Supply

Chain Management (e-SCM)/e-
Procurement systems frequently.
3.18 0.75 3 3 -0.33 -0.88

Results for Hypothesis Statement 4

When examining the H4 data, specific to gender type (Table 24), the Spearman’s Rho

Rank Correlation Coefficient shows the far stronger relationship for females. Likewise,

when analyzing the descriptive statistics, the average of the means for both the EOU and

PU variables based on question response showed that for females, the average was 3.89

per response, whereas males averaged only 3.09 per response. Based on the prior work

completed by Bonett & Wright (2000), it was determined that one needs to have a

minimum number of respondents being 20 or more in a prospective study in order to

properly have statistical significance and corresponding strength of Spearman’s Rho

correlation on such a small sample size. As such, this study reached this minimum

threshold for sample size. Further data analysis was performed in this study by a method

of a test of significance known as a P-value and the use of Spearman’s Rho Rank

Correlation Coefficient, a correlation statistical analysis tool that was used explicitly in
 70
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
this study due to the collection of ordinal data. Here the Spearman’s Rho values for

women were, on average, 0.663, while the same average value for men was only 0.273, a

difference of almost 2.5 times the amount.

Table 22:

Descriptive Statistics for H4 – Gender (Female)

H4: Female
Std.
Code Question Mean Dev. Median Mode Skewness Kurtosis

I use e-Supply Chain Management

(e-SCM)/e-Procurement systems 3.7 0.66 4 4 0.40 -0.55
as often as needed.
PU10
In order to better interact with my
OEM/Tier 1 customers, I use e-
Supply Chain Management (e- 3.7 0.75 3.5 3 0.70 -0.76
SCM)/e-Procurement systems
PU11 frequently.
To the extent possible, I use e-
Supply Chain Management (e- 3.7 0.47 4 4 -0.95 -1.24
SCM)/e-Procurement systems
PU12 frequently.
Using the e-Supply Chain
Management (e-SCM)/e-
Procurement system in my job 3.9 0.55 4 4 -0.08 0.77
enables me to accomplish tasks
EOU1 more quickly.
Using e-Supply Chain
Management (e-SCM)/e-
Procurement systems make it
4.0 0.65 4 4 0.00 -0.28
EOU5 easier to do my job.
I find the e-Supply Chain
Management (e-SCM)/e-
Procurement system useful in my
3.8 0.52 4 4 -0.29 0.46
EOU6 job
Learning to operate the e-Supply
Chain Management (e-SCM)/e-
Procurement system was easy for
4.1 0.55 4 4 0.08 0.77
EOU7 me.
I find it easy to get the e-Supply
Chain Management (e-SCM)/e-
Procurement system to do what I
3.9 0.72 4 4 0.15 -0.88
EOU8 want it to do.
 71
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
My interaction with the e-Supply
Chain Management (e-SCM)/e-
Procurement system is clear and
3.9 0.72 4 4 0.15 -0.88
EOU9 understandable.
I find the e-Supply Chain
Management (e-SCM)/e-
Procurement system to be flexible
3.8 0.70 4 4 0.29 -0.73
EOU10 in operation.
It was easy for me to become
skillful at using the e-Supply
Chain Management (e-SCM)/e-
3.9 0.59 4 4 0.00 0.18
EOU11 Procurement system.
I find the e-Supply Chain
Management (e-SCM)/e- 4.3 0.47 4 4 0.95 -1.24
EOU12 Procurement system easy to use

Table 23:
Descriptive Statistics for H4 – Gender (Male)

H4: Male
Std.
Code Question Mean Dev. Median Mode Skewness Kurtosis
PU10 I use e-Supply Chain
Management (e-SCM)/e-
Procurement systems as often as 3.2 1.02 3 4 -0.49 -0.25
needed.

PU11 In order to better interact with

my OEM/Tier 1 customers, I use
e-Supply Chain Management (e- 2.8 1.11 3 3 -0.15 -0.81
SCM)/e-Procurement systems
frequently.
PU12 To the extent possible, I use e-
Supply Chain Management (e-
SCM)/e-Procurement systems 2.8 1.03 3 3 -0.07 -0.50
frequently.

EOU1 Using the e-Supply Chain

Management (e-SCM)/e-
Procurement system in my job 3.2 1.03 3 4 -0.53 -0.44
enables me to accomplish tasks
more quickly.
EOU5 Using e-Supply Chain
Management (e-SCM)/e-
Procurement systems make it 3.2 1.06 3 4 -0.63 -0.51
easier to do my job.
EOU6 I find the e-Supply Chain
Management (e-SCM)/e-
Procurement system useful in
3.3 1.03 4 4 -0.78 -0.05
my job
EOU7 Learning to operate the e-Supply
Chain Management (e-SCM)/e-
Procurement system was easy
3.3 1.00 4 4 -0.86 0.00
for me.
EOU8 I find it easy to get the e-Supply
Chain Management (e-SCM)/e-
Procurement system to do what I 3.2 0.90 3 3 -0.14 0.50
want it to do.
 72
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
EOU9 My interaction with the e-Supply
Chain Management (e-SCM)/e-
Procurement system is clear and 2.9 0.79 3 3 0.16 -0.29
understandable.
EOU10 I find the e-Supply Chain
Management (e-SCM)/e-
Procurement system to be
2.7 0.82 3 3 0.05 0.64
flexible in operation.
EOU11 It was easy for me to become
skillful at using the e-Supply
Chain Management (e-SCM)/e-
3.2 0.85 3 3 -0.65 0.65
Procurement system.
EOU12 I find the e-Supply Chain
Management (e-SCM)/e- 3.3 0.75 3 3 -0.42 1.01
Procurement system easy to use

Table 24:

Correlational Statistics for H4 – Gender (Female)

H4: Female Correlation (Spearman’s Rho)

EOU1 EOU5 EOU6 EOU7 EOU8 EOU9 EOU10 EOU11 EOU12

PU10-12 0.564 0.600 0.560 0.720 0.583 0.663 0.681 0.684 0.928

Table 25:

Correlational Statistics for H4 – Gender (Male)

H4: Male Correlation (Spearman’s Rho)

EOU1 EOU5 EOU6 EOU7 EOU8 EOU9 EOU10 EOU11 EOU12

PU10- 12 0.249 0.155 0.152 .217 0.383 0.428 0.332 0.304 0.233

When examining the overall results and reviewing the data against the collected

demographics, one can also see several indicative trends. An initial review shows that
 73
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
this U.S. automotive industry study reviewed here was completed by only 14% females,

a less than ideal figure, but one that is indicative of this industry and the overall trends in

STEM-based fields of industry in the United States. Despite the fact that women make

up nearly half of the working population, they continue to remain underrepresented in

STEM occupations, as witnessed by the fact that in 2012, only 26 percent of STEM

workers were women and 74 percent were men. (BLS, 2013). Additional information

culled from the demographics as it relates to educational level, when examining gender,

female respondents within this study had on average, higher educational levels than their

male colleagues, as noticed by the 5.55 value (corresponding to MS degree or higher)

compared to 3.14 (corresponding to BS or equivalent), respectively. This, too, is

indicative of the underrepresentation of females in automotive despite being, on average,

better educated than their male counterparts as examined within this study.

Table 26:

Correlational Statistics for H1-H4

EOU, PU, Company Size and Gender (Male/Female)

Males Females
Hypothesis Mean Mean t-test p-value
H1(EOU) 3.144 3.950 -2.29 .001***
H2 (PU) 3.193 3.740 -1.87 .018*
H3 (Company Size – 6.016 6.350 -.860 .043*
Annualized Sales)
H3 (Company Size – 4.750 5.200 -1.30 .367
Number of Employees)
H4 (Gender and EOU) 3.091 3.890 -2.76 .008**
*** Significant at the ≤ .001 p-value level
** Significant at the ≤ .01 p-value level
* Significant at the ≤ .05 p-value level
 74
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
Table 27:

Hypotheses testing summary

Hypothesis Supported Significance (p-

value level)

H1: The decision to use an e-SCM Yes p≤ .001

procurement technology system has a
significant positive association with ease of
system use.

H2: The decision to use an e-SCM Yes p≤ .05

procurement technology system has a
significant positive association with
organizational internal usefulness.

H3: The larger the organization (based on Yes p≤ .05

annualized sales), the more apt or greater
acceptance it is to utilize an e-SCM
procurement technology system.
H4: The use of an e-SCM procurement Yes p≤ .01
technology system via gender (women)
within the automotive supply chain has a
significant positive association with ease of
system use.

The corresponding P-values help to identify the statistical significance captured

in the support of each researched hypothesis. From an overall significance standpoint,

Hypothesis #3 is partially supported to the level of strength that will allow this

hypothesis to be supported. Based on the data collected and analyzed, the researcher

was unable to unequivocally determine that larger organizations when examining

 75
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
company size by number of employees will have a greater occurrence of acceptance of

e-SCM procurement systems within their organization. Interestingly enough, though,

based on the data collected and analyzed, this conclusion is verified or supported when

examining larger organizations using the variable company size in terms of overall

annualized sales. Based on the study performed, those companies that have larger

annualized sales will have a greater occurrence of acceptance of e-SCM procurement

systems within their organization. The data suggests that the likelihood of acceptance of

e-SCM procurement systems is correlated to corporation/organization size in terms of

number of overall annualized sales. When comparing means of each respondent’s

corresponding organization, there were no discernible differences between various

organization size and the resulting data, hence, the correlation of company size, as it

relates to the number of overall employees as a potential factor on e-SCM procurement

system adoption is likewise not supported. Each of these methods by which the data

was examined determined that organizational size (only in terms of number of

employees, but not in terms of overall annualized sales) was not a factor on e-SCM

procurement system adoption, thereby negating Hypothesis 3 as a valid hypothesis using

this company size metric (total employees).

When examining hypotheses 1, 2 and 4, the usage of P-values along with the

statistical analysis technique of Spearman’s Rank Correlation Coefficient was calculated

for each of these suggested hypotheses (Tables 11, 13, 24, 25 and 26) resulting in

corresponding high levels of significance for along with high values of the Spearman’s

Coefficient, thereby collectively indicating a strong positive relationship for each of

these three hypotheses.

 76
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
Chapter V–Discussion
This chapter provides the conclusions based on prior results presented in

previous chapters, the implications for those involved in automotive manufacturing, the

limitations that may impact any interpretations along with, and opportunities for future

research that arise from this study.

Conclusions

This study was undertaken to investigate potential factors in relation to the

acquisition and usage of e-supply chain management (e-SCM) procurement software

within organizations specific to the U.S. automotive industry supply chain. Data were

collected using survey research methodology from respondents corresponding

specifically within this industry. The instrument constructs were derived from the

technology acceptance model (TAM) and included ease-of-use (EOU) and perceived

usefulness (PU) from an organizational perspective. In addition, the study collected

pertinent respondent demographic information, such as: years of industry experience,

department (employment area within an organization), company size (both in terms of

annualized sales and number of employees), respondent educational level, and

respondent gender.

Based on an analysis of the responses from study, one may be able to conclude

that the two constructs (latent variables), the ease of use (EOU) of the e-SCM

procurement technology software and the perceived usefulness (PU) of this same

innovative technology are correlated with improved performance within the U.S.

automotive industry through companies represented by the respondents. The findings of

this study are consistent with prior studies covering TAM variables reflective of other
 77
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
industries (Chau & Hu, 2002; Doll & Deng, 1998; Grewal, 2002).

In addition, organizational size in terms of annualized sales was shown to have a

greater affect on e-SCM procurement system usage internally when compared to

company size based on the number of employees. The number of male respondents

were far greater than female respondents, an item further investigated both here and in

additional studies (Eaton-Cardone, 2016) along with the corresponding Bureau of Labor

Statistics (2013) data for this industry. When examining responses based on gender, this

study showed that women, on average, were more highly educated than their male

counterparts, and their responses exhibited a stronger, significant positive correlation to

the ease-of-use (EOU) aspect of e-SCM technology. As witnessed via this study and

reflective of this industry, women are severely underrepresented, creating the need for

more STEM-based opportunities for women, another conclusion previously identified

(Dugger & Kasi, 2000).

Organizational Implications

When examining the survey data results, one can see that two factors in

determining e-SCM procurement system success are the ease of use, as the original

TAM model refers to this factor as EOU, as well as the perceived usefulness, or PU.

Likewise, another factor in the adoption of such technologies was determined to be user

gender, with the analysis revealing a significant positive correlation for females (when

compared to males) concerning the use of e-SCM procurement systems and the ease of

system use. Fewer than 20 percent of the respondents to this survey were female, which

is reflective of the overall automotive industry. This average is indicative of an

underutilization of females and from an organization standpoint, it is advisable for

 78
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
manufacturing organizations to help recruit females into the pipeline of those technical

and STEM-based programs that, in turn, feed the industry’s personnel base.

Another factor is company size in terms of overall annualized sales, with larger

organizations with larger sales implementing and using such systems at a higher rate

than smaller companies. One may conclude that all manufacturing organizations serving

the U.S. automotive industry should implement e-SCM procurement systems (if not

already having done so internally). From a competitive standpoint, another implication

is that those companies who delay or don’t eventually implement such an e-SCM

procurement system will be behind, both technologically and economically, to their

competitive counterpart automotive suppliers who already have implemented such a

system within their own organizations.

Industry Implications

Based on the analysis of the demographic sections within this study, some very

important STEM (Science, Technology, Engineering, and Mathematics) conclusions and

corresponding implications can be drawn within the U.S. automotive industry, an

industry that relies and will continue to rely heavily upon STEM-based curricula in K-20

for future prospective employees (Society of Automotive Engineers, 2014). Upon initial

review, one of the most glaring aspects of the respondents (and the industry as a whole)

is the large proportion of males versus females. This study reflects the overall trend of

men outnumbering women in STEM-based positions nationally (Society of Women

Engineers, 2013). Several organizations are working to help address the lack of women

in this industry versus the general population in the United States, which is currently

52% Women, 48% Men (U.S. Census, 2013). Perhaps one of the greatest of these is the
 79
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
Society of Women Engineers, an organization founded in 1950 in order to help promote

women in the industrial workplace and whose mission is to, “Stimulate women to

achieve full potential in careers as engineers and leaders, expand the image of the

engineering profession as a positive force in improving the quality of life, and

demonstrate the value of diversity (SWE, 2013). From a workplace standpoint, women

make up 47% of the total U.S. labor force and account for 51 percent of the increase in

total labor force growth since 2008 (U.S. Census, 2013). Research gathered here within

the automotive industry had a response rate from women of only 14%, further

heightening the need for a greater number of females in roles such as was gathered via

prospective respondents in the domestic US automotive industry.

This important result reiterates the point and clearly speaks to the need for more

STEM-based women graduates and industry members (SWE, 2013), a similar theme of

under-representation from earlier studies concerning women, gender equity and STEM-

based fields, such as educators within Industrial Technology (Kasi & Dugger, 2000) as

well as women and other minorities within the U.S. automotive industry (Burnett, 2016;

Eaton-Cardone, 2016).

This research has been undertaken to highlight the significance of electronic

supply chain management (e-SCM) tools within the U.S. automotive industry and their

influence on the users’ perceptions of usefulness and ease of use, the major constructs

developed through the technology acceptance model (Davis, 1985). As this research

concerning the TAM model has grown over time, so has its applicability to other

information systems (IS) based fields, ones that cover many more aspects of

organizations as well as organization types than in the original research, clearly showing
 80
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
how information systems (IS) is continually becoming a driving factor for organizations

of all types and sizes (Davis, 2000). This research sought to provide organizations with

additional knowledge and techniques to better utilize e-SCM procurement systems

within their own organizations, avoiding the potential traps of unanticipated

technological outcomes (Bellamy, 2007).

The work that was undertaken within this dissertation has been publicly

disseminated by way of a presentation with further opportunities for publication in other

scholarly journals and related conferences. This is mentioned in order to show

additional support for the current, continual need for the collaboration between academia

and industry, working toward bridging the gaps between theory and application, as well

as interdisciplinary subject matter, material that this research will add to the existing

continual body of knowledge.

Limitations

Upon review of this study, potential limitations were initially addressed by

means of both research questions and potential respondents within this particular

industry, limiting factors in terms of study completion, due to lack of resources in U.S.

automotive industry research and development funding (Cooley, 2011). During the

course of this study, both in terms of initial concept, through survey development and

distribution, to final data collection and analysis, the U.S. automotive industry,

specifically for which this study was devised, had undergone dramatic transformations

within this country, as witnessed by the bankruptcies of both former “Big 3” automakers

Chrysler and General Motors (Automotive Industry Action Group, 2012). In addition,

our country had undergone a serious economic downturn, also known as “the Great
 81
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
Recession” (Donlon, 2013) of which the severity of is still being felt, especially in hard

hit areas such as the Midwest United States region. From a statewide perspective,

Michigan and the town that is known as the “Motor City,” Detroit was negatively

impacted to an extreme degree and felt by individual families and economists alike by

means of employment, corresponding population loss (U.S. Census, 2013) and financial

disarray. As such, due to inadequate leadership and a large drain of jobs, tax income and

overall revenue, the City of Detroit itself was forced to file for bankruptcy protection in

2013 (Bomey, 2014). Collectively, these are major limitations as the U.S. automotive

industry funds far less studies (such as this one) than in previous decades (Hill, 2014).

One can further examine this important factor by examining the population of the

state of Michigan, the U.S. Automotive Industry’s largest employer in terms of

individual state locales (AIAG, 2012). The state of Michigan was the only state in the

United States that lost citizenry/general population from 2000 to 2010, as these are the

last two census periods (U.S. Census, 2013). When examining the impact of this study,

this fact is another important aspect as many of the research items that this study

discussed and collected in terms of overall industry impact, have become even more

valued within the American economic engine, both in terms of gross domestic product

(GDP) as well as population layout. Limitations due to convenience sampling occurred

within this study as the prospective respondents were purposefully selected based on

automotive industry association as opposed to general manufacturing industries.

An additional limitation was that this study did not utilize the newer model,

known as “TAM-2”, which was developed specifically to address the limitations of the

original TAM work by providing a deeper individual user perspective by adding

 82
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
dimensions addressing social influence and cognitive instrumental processes (Davis,

2000). As such, to help keep this study at a manageable level, the research study here

does not address the potential TAM-2 aspect of these respondents. Such an analysis can

work toward this collective body of knowledge by way of additional future studies and

opportunities for new research.

Lastly, additional limitations are present based on the selection of the population

for this study since the respondents were representing only the U.S. automotive industry

and not other employers who may benefit from this technology adoption.

Future Research

This study has focused on some of those items within the supply chain that have

been shown to assist automakers and their suppliers, namely, the use of electronic supply

chain management (e-SCM) software and its benefits for adopting organizations (and

corresponding personnel). As such, this study has identified further opportunities for

future research in various formats. 1). Additional future research could mirror the

survey distributed from this study against additional alternative industries such as

aerospace, defense or agriculture, for example, while looking for universal similarities

and differences amongst the differing industries. Such similarities in results can work

toward finding potential e-SCM solutions in these other industries. 2). Similarly, an

additional avenue for future research could include examining other aspects of the

supply chain within the automotive industry, looking for other opportunities for process

and product savings with adoption of similar innovative technologies beyond the e-SCM

systems examined here. 3). Additional opportunities for future research could focus on

gender within the U.S. automotive industry supply chain specifically in other core
 83
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
industry divisions or departments such as engineering, human resources, manufacturing,

sales/marketing or distribution. 4). A similar study can similarly be completed with the

corresponding U.S. automotive industry aftermarket supply chain. This is an important

item that can be addressed with future research studies, providing additional

opportunities for graduate students and research journals.

Epilogue

Along with the corporate bankruptcies, several recent American automotive

brands have also been dissolved by their parent companies, including: Oldsmobile,

Saturn, Hummer, Pontiac, Mercury, and Plymouth (Putnam, 2013). In addition, the

United States of America had undergone a serious economic downturn, “…the severity

of which is still being felt, by individual families and economists alike, especially in

hard hit regions such as Detroit, Michigan” (McAlinden, 2010). This is an important

aspect as many of the research items that this study discussed and collected have

continued to be valued within the American economic engine through its collective

impact. Such research reiterates the importance of the automotive industry on the

United States of America, as was once a commonplace American saying, per former GM

CEO Charles Wilson, “As General Motors goes, so goes the nation” (Woodhill, 2012).
 84
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
References
Agarwal, R. & Prasad, J. (1999). Are individual differences germane to the acceptance

of new information technologies? Decision Sciences, 30 (2), 361-391.

Ajzen, I. & Fishbein, M. (1975). Belief, attitude, intention, and behavior: An

introduction to theory and research. Reading, MA. Addison Wesley.

Ajzen, I. and Fishbein, M. (1980). Understanding attitudes and predicting social

behavior, Englewood Cliffs, NJ: Prentice-Hall.

Archer, T. (2005). Web based surveys basics. Unpublished paper presented at the Mid-

Western Educational Research Association Annual Conference, Columbus, OH.

Automation Alley. (2015). Global Headquarters: Troy, MI. Retrieved from:

[Link]

Automotive Industry Action Group. (2012). Global Headquarters: Southfield, MI.

Retrieved from: [Link]

Ayers, J. B. (2006). Handbook of supply chain management (2nd Ed.). Los Angeles,

CA: Auerbach Publications.

Bailey, D. (2009). Half of U.S. auto suppliers face bankruptcy: Study. Reuters, March

19, 2009.

Bellamy, A. (2007). Exploring the influence of new technology planning and

implementation on the perceptions of new technology effectiveness. Journal of

Technology Studies, 33(1), 32-40.

Benamati, J. and Rajkumar, T (2008). An outsourcing acceptance model: An

application of TAM to application development outsourcing decisions.

Information Resource Management Journal, 21(2), 80-102.

Bennett, J. (2009). “Biotech firms could be cure for job losses”. Retreived from: the
 85
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
Detroit Free Press. February 19, 2009.

Bomey, N. (November 8, 2014). “Detroit bankruptcy: A master time line”. Retrieved

from: the Detroit Free Press. November 8, 2014.

Bonett, D. G., & Wright, T. A. (2000). Sample size requirements for estimating Pearson,

Kendall and Spearman correlations. Psychometrika, 65(1), 23-28.

Bureau of Labor Statistics. (2013). Automotive industry employment subcategory:

Motor vehicles and parts manufacturing. Retrieved from:

[Link]

Burnett, S. (January 2016). Minority report. Engine Technology International

Journal. January 2016, 51-54.

Callaos, N. & Callaos, B. (2002). Toward a systematic notion of information: practical

consequences. Journal of Informing Science, 5 (1), 101-113.

Center for Automotive Research (CAR). (2016). Global headquarters, Ann Arbor, MI.

Retrieved from: [Link]

Chau, P. & Hu, P. (2001). Information technology acceptance by professionals: A

model comparison approach. Decision Sciences, 32 (4), 699-719.

Chau, P. & Hu, P. (2002). Examining a model of information technology acceptance by

individual professionals: An exploratory study. Journal of Management

Information Systems, 18 (4), 191-229.

Chin, W. & Gopal, A. (1995). Adoption intention in GSS: Relative importance of

beliefs. ACM SigMIS Database, 26(2-3), 42-64.

Chrysler LLC (formerly Chrysler Corporation). (2014). Global headquarters, Auburn

Hills, MI., Retrieved from: [Link]

 86
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
Comer, J., Grewal, R., & Mehta, R. (2001). An investigation into the antecedents of

organizational participation in business-to-business electronic markets.

Journal of Marketing, 65(3), 17-33.

Cooley, S.C. (2011). An examination of the situational crisis communication

theory through the General Motors bankruptcy. Journal of Media and

Communication Studies, 3(6), 203-211.

Cooper R.B. (1994). The inertial impact of culture on IT implementation. Information &

Management, 27(1), 17-31.

Covisint, LLC (2015). Global headquarters, Detroit, MI. Retrieved from:

[Link]

Cronbach, L. J. (1951). Coefficient alpha and the internal structure of tests.

Psychometrika. 16, 297-334.

Davis, F. D. (1985). A technology acceptance model for empirically testing new end-

user information systems: theory and results. Published Doctoral Dissertation,

Massachusetts Institute of Technology, Cambridge, MA.

Davis, F. D. (2000). A theoretical extension of the technology acceptance model: Four

longitudinal field studies. Management Science. 46 (2) 186-204.

Delphi Corporation. (2015). Global headquarters, Troy, MI. Retrieved from:

[Link]

Dillman, D.A. (2000). Mail and Internet surveys: the tailored design method. NY: John

Wiley.

Doll, W., Hendrickson, A. & Deng, X. (1998). Using Davis’s perceived usefulness and

ease-of-use instruments for decision making: A confirmatory and multigroup

 87
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
invariance analysis, Decision Sciences, 29 (4), 839-869.

Donlon, J.P. (2013). It isn’t just Detroit: the most dangerous deficit in America is the

jobs deficit, Chief Executive, 219, 72-73.

Dugger, J. C. & Kasi, B. (2000). Gender equity in industrial technology: The challenge

and recommendations, Journal of Industrial Technology, 16 (4), 1-9.

Dziczek, K. (2015). Contribution of General Motors’ manufacturing plants to the

economies of ten states and the United States in 2013 and 2014. Ann Arbor, MI:

Center for Automotive Research (CAR).

Eaton-Cardone, M. (2016). STEM job demand means more women need apply. Journal

of Machine Design, 56(4), 57-59.

Evans, J. R. (2005). The value of online surveys. Journal of Internet Research, 15(2),

195-219.

Fowler, F. J. (2009). Survey research methods: 4th Edition. Los Angeles, CA: Sage

Publications.

Gallivan, M. (2000). “Examining workgroup influence on technology usage: A

community of practice perspective”, SIGCPR (Special Interest Group on

Computer PersonnelResearch), 2000 Annual Conference, ACM.

Gehm, R. (2007). E-volution. Automotive Engineering International, 56 (11),

33-37.

General Motors Company (formerly General Motors Corporation) (2013).

Global headquarters, Detroit, MI. Retrieved from: http:// [Link]/.

Grandon, E. E., & Pearson, J. M. (2004). Electronic commerce adoption: An empirical

study of small and medium U.S. businesses. Information & Management, 42(1),
 88
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
197-216.

Grewal, R. (2002). “An investigation into the antecedents of organizational participation

in business-to-business electronic markets”. Journal of Marketing, 65(3), 17-33.

Hacker, D. (2009). A Pocket Style Manual. 5th Ed. Boston, MA. Bedford/St.

Martin’s Press.

Hill, K. (2010). Contribution of the automotive industry to the economies of all fifty

states and the United States. Ann Arbor, MI: Center for Automotive Research

(CAR).

Hill, K. (2014). Just How High‐Tech is the Automotive Industry? Ann Arbor, MI: Center

for Automotive Research (CAR).

Hitt, G. (2008). Big Three plead for aid”. Wall Street Journal, November 18, 2008,

A1-2.

Ingrassia, P. (2008). “How Detroit drove into a ditch”. Wall Street Journal, October

25, 2008, C1-2.

Institute for Supply Management, Inc. (2014). Retrieved from: [Link]

Karahanna, E., & Limayem, M. (2000). E-mail and v-mail usage: Generalizing across

technologies. Journal of organizational computing and electronic commerce,

10(1), 49-66.

Levin, D. (2015). Why Toyota is diversifying its top leadership. Fortune, March 5,

2015.

Likert, R. (1961). New patterns of management. New York, NY. McGraw-Hill

McAlinden, S. (2010). Contribution of the automotive industry to the economies of all

fifty states and the United States. Ann Arbor, MI: Center for Automotive
 89
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
Research (CAR).

McAlinden, S. (2003). Economic contribution of the automotive industry to the U.S.

economy. Ann Arbor, MI: Center for Automotive Research (CAR).

Mital, A., & Pennathur, A. (2004). Advanced technologies and humans in manufacturing

workplaces: an interdependent relationship. International journal of industrial

ergonomics, 33(4), 295-313.

Motor & Equipment Manufacturer’s Association, Inc. (2014). Corporate headquarters:

Washington, D.C. Retrieved from: [Link]

National Association of Manufacturers. (2014). Corporate headquarters:

Washington, D.C. Retrieved from: [Link]

Nunnally, J. (1978). Psychometric theory. New York, NY. McGraw-Hill.

Original Equipment Suppliers Association, Inc. (2014). Corporate headquarters:

Washington, D.C. Retrieved from: [Link]

Pearson, R. W. (2010). Statistical Persuasion. Los Angeles, CA: Sage Publications.

Pew Research Center. (2012). Study on recent economic policies – auto bailout. Pew

Research Center, Washington, D.C.

Phillips, D. (2016). U.S. auto sales break record in 2015. Automotive News, Detroit, MI.

Putnam, G. (2013). The 2013 Bankruptcy Yearbook & Almanac. Quincy, MA: NGR

Publications.

Raymond, M.R. (2005). An NCME instructional module on developing and

administering practice analysis questionnaires. Educational Measurement: Issues

and Practice, 29-42.

Rogers, E. M. (1963). Diffusion of Innovations (1st Ed.). New York, NY: Free Press.
 90
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
Rogers, E. M. (2003). Diffusion of Innovations (5th Ed.). New York, NY: Free Press.

Santos, J. R. A. (1999). Cronbach’s alpha: A tool for assessing the reliability of scales.

Journal of extension, 37(2), 1-5.

Society of Automotive Engineers, International, Inc. (2014). Corporate headquarters:

Warrendale, PA. Retrieved from: [Link]

Society of Manufacturing Engineers, International, Inc. (2014). Corporate headquarters:

Dearborn, MI. Retrieved from: [Link]

Society of Petroleum Engineers, International, Inc. (2012). Annual Technical

Conference and Exposition. Corporate headquarters: Houston, TX. Retrieved

from: [Link]

Society of Women Engineers, International, Inc. (2013). Corporate headquarters:

Washington, D.C. Retrieved from: [Link]

Straub, D., Keil, M. & Brenner, W. (1997). Testing the technology acceptance model

across cultures: A three country study. Information & Management, 33 (1), 1-11.

Thompson, M. F., & Merchant, A. A. (2010). Employment and economic growth in the

U.S. automotive industry: Considering the impact of American and Japanese

automakers. Indiana Business Review, 10.

Tracey, M., Fite, R. W., and Sutton, M. J. (2004). An explanatory model and

measurement instrument: A guide to supply chain management research and

applications. Mid-American Journal of Business, 19(2), 53-70.

Trent, R. (1998). Purchasing and supply management: Trends and changes.

International Journal of Purchasing and Materials Management, 34 (3), 2-11.

United States Department of Labor – 2010 and 2012 Census Statistics (2013),
 91
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
Washington, D.C. Retrieved from: [Link]

Venkatesh, V. & Davis, F. (2000). A theoretical extension of the technology acceptance

model: Four longitudinal field studies. Management Science, 46 (2), 186-204.

Venkatesh, V, & Morris, M.G. (2002). User acceptance enablers in individual decision

making about technology: Toward an integrated model. Decision Sciences, 33

(2), 297-316.

Vlasic, B. (2009). 100 Jobs? It Looks Good to Michigan. New York Times, September

10, 2009, B1.

Ward’s Auto. (2016). “U.S. Vehicle Sales, 1975-2015”. Corporate Headquarters:

Southfield, MI

Weddell, B. (2011). 27 Automotive suppliers file chapter 11 bankruptcies in 2009: End

of year status summary. Reuters, August 27, 2011

Womack, J. (2002). Lean thinking: Where have we been and where are we going?

Manufacturing Engineering, 129 (3), L2-L6.

Woodhill, L. (2012). General Motors is headed for bankruptcy–again. Forbes, August

15, 2012.
 92
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
Appendices

Appendix A

Request for Human Subjects Approval Form

 93
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Appendix B
Initial (Pilot Study) Survey for Use in Research and Corresponding Data Collection

Automotive Supply Chain Industry Survey

For the purpose of this survey, suppliers (often referred to as “vendors”) are defined as
any organization external to your own to which you have in some way transferred
responsibility for any type of product or process development efforts. Please note that
this definition excludes directly employed contract workers. Also, please remember that
questions are valued from 1 through 5:
1–Strongly Disagree, 2 –Disagree, 3 –Neither Agree Nor Disagree, 4 – Agree, 5 – Strongly
Agree

Technology Acceptance Model (TAM) Survey

Perceptions of Outsourcing with e-Procurement Systems

Please assess your level of agreement with the following statements relative to supplier
development work in your organization.
PU1 Using e-Procurement/e-Supply Chain Management systems improves the
purchasing department’s effectiveness.
PU2 Using e-Procurement/e-Supply Chain Management systems improves the quality
of the purchasing department’s IS applications.
PU3 Using e-Procurement/e-Supply Chain Management systems allows the purchasing
and IT/IS function to accomplish tasks critical to the organization.
PU4 Using e-Procurement/e-Supply Chain Management systems allows the IT/IS
function to develop more systems than would otherwise be possible.
PU5 Using e-Procurement/e-Supply Chain Management systems allows the IT/IS
function to reduce costs.
PU6 Using e-Procurement/e-Supply Chain Management systems helps the IT/IS
function meet staffing goals.
PU7 Using e-Procurement/e-Supply Chain Management systems allows the IT/IS
function to develop systems more quickly than would otherwise be possible.
PU8 Using e-Procurement/e-Supply Chain Management systems makes it easier to
perform purchasing functions.
PU9 In general using e-Procurement/e-Supply Chain Management systems are useful.
EOU1 I understand how to use outsourcing.
EOU2 Using outsourcing does not require a lot of mental effort.
EOU3 I find outsourcing to be easy to use.
EOU4 I find it easy to accomplish what I set out to do through outsourcing.
EOU5 Using e-Procurement/e-Supply Chain Management systems makes it easier to
share risk with the vendor
AT1 I like using e-Procurement/e-Supply Chain Management systems.
AT2 Outsourcing provides an attractive alternative to in house e-Procurement systems.
AT3 Using e-Procurement/e-Supply Chain Management systems is in general a good
idea.
 94
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
AT4 Using an e-Procurement/e-Supply Chain Management system creates a pleasant
project environment.
IN1 Assuming I have an outsourcer for e-Procurement/e-Supply Chain Management
systems, I intend to use them.
IN2 Given that I have access to an outsourcer for e-Procurement/e-Supply Chain
Management systems I predict that I would use them.
IN3 I intend to increase my usage of e-Procurement/e-Supply Chain Management
systems in the future
IN4 I intend to use e-Procurement/e-Supply Chain Management systems as often as
needed.
IN5 In order to better interact with my OEM/Tier 1 customers, I would use e-
Procurement/e-Supply Chain Management systems frequently.
IN6 To the extent possible, I would use e-Procurement/e-Supply Chain Management
systems frequently.
IN7 It is due to the request of my OEM/Tier 1 customers that I would use e-
Procurement/e-Supply Chain Management systems frequently.

Perceived usefulness
USE1 Using the e-Procurement/e-Supply Chain Management system in my job would
enable me to accomplish tasks more quickly.
USE2 Using the e-Procurement/e-Supply Chain Management system would improve
my job performance.
USE3 Using the e-Procurement/e-Supply Chain Management system in my job would
increase my productivity.
USE4 Using the e-Procurement/e-Supply Chain Management system would enhance
my effectiveness on the job.
USE5 Using the e-Procurement/e-Supply Chain Management system would make it
easier to do my job.
USE6 I find the e-Procurement/e-Supply Chain Management system useful in my job.

Perceived ease of use

EAS7 Learning to operate the e-Procurement/e-Supply Chain Management system
would be easy for me.
EAS8 I would find it easy to get the e-Procurement/e-Supply Chain Management
system to do what I want it to do.
EAS9 My interaction with the e-Procurement/e-Supply Chain Management system
would be clear and understandable.
EAS10 I would find the e-Procurement/e-Supply Chain Management system to be
flexible to interact with.
EAS11 It would be easy for me to become skillful at using the e-Procurement/e-Supply
Chain Management system.
EAS12 I would find the e-Procurement/e-Supply Chain Management system easy to
use.
***********************************************************************
*
 95
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
Appendix C

Final (Post-Pilot Study) Survey for Use in Research and Corresponding Data Collection

Automotive Supply Chain Industry Survey

For the purpose of this survey, suppliers (often referred to as “vendors”) are defined as
any organization external to your own to which you have in some way transferred
responsibility for any type of product or process development efforts. Please note that
this definition excludes directly employed contract workers. Also, please remember that
questions are valued from 1 through 5:
1–Strongly Disagree, 2 –Disagree, 3 –Neither Agree Nor Disagree, 4 – Agree, 5 – Strongly
Agree

Technology Acceptance Model (TAM) Survey

Perceptions of Outsourcing with e-Procurement Systems

Please assess your level of agreement with the following statements relative to supplier
development work in your organization.
PUR1 Using e-Procurement/e-Supply Chain Management systems improves the
purchasing department’s effectiveness.
PUR2 Using e-Procurement/e-Supply Chain Management systems improves the quality
of the purchasing department’s IS applications.
PUR3 Using e-Procurement/e-Supply Chain Management systems allows the
purchasing and IT/IS function to accomplish tasks critical to the organization.
PUR4 Using e-Procurement/e-Supply Chain Management systems allows the IT/IS
function to develop more systems than would otherwise be possible.
PUR5 Using e-Procurement/e-Supply Chain Management systems allows the IT/IS
function to reduce costs.
PUR6 Using e-Procurement/e-Supply Chain Management systems helps the IT/IS
function meet staffing goals.
PUR7 Using e-Procurement/e-Supply Chain Management systems allows the IT/IS
function to develop systems more quickly than would otherwise be possible.
PUR8 Using e-Procurement/e-Supply Chain Management systems makes it easier to
perform purchasing functions.
PUR9 In general using e-Procurement/e-Supply Chain Management systems are useful.
EOU1 I understand how to use outsourcing.
EOU2 Using outsourcing does not require a lot of mental effort.
EOU3 I find outsourcing to be easy to use.
EOU4 I find it easy to accomplish what I set out to do through outsourcing.
EOU5 Using e-Procurement/e-Supply Chain Management systems makes it easier to
share risk with the vendor
OUT1 Assuming I have an outsourcer for e-Procurement/e-Supply Chain Management
systems, I intend to use them.
OUT2 Given that I have access to an outsourcer for e-Procurement/e-Supply Chain
Management systems I predict that I would use them.
OUT3 I intend to increase my usage of e-Procurement/e-Supply Chain Management
 96
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
systems in the future
IN4 I intend to use e-Procurement/e-Supply Chain Management systems as often as
needed.
IN5 In order to better interact with my OEM/Tier 1 customers, I would use e-
Procurement/e-Supply Chain Management systems frequently.
IN6 To the extent possible, I would use e-Procurement/e-Supply Chain Management
systems frequently.
IN7 It is due to the request of my OEM/Tier 1 customers that I would use e-
Procurement/e-Supply Chain Management systems frequently.

Perceived usefulness
PU1 Using the e-Procurement/e-Supply Chain Management system in my job would
enable me to accomplish tasks more quickly.
PU2 Using the e-Procurement/e-Supply Chain Management system would improve
my job performance.
PU3 Using the e-Procurement/e-Supply Chain Management system in my job would
increase my productivity.
PU4 Using the e-Procurement/e-Supply Chain Management system would enhance
my effectiveness on the job.
PU5 Using the e-Procurement/e-Supply Chain Management system would make it
easier to do my job.
PU6 I would find the e-Procurement/e-Supply Chain Management system useful in
my job.

Perceived ease of use

EOU7 Learning to operate the e-Procurement/e-Supply Chain Management system
would be easy for me.
EOU8 I find it easy to get the e-Procurement/e-Supply Chain Management system to do
what I want it to do.
EOU9 My interaction with the e-Procurement/e-Supply Chain Management system
would be clear and understandable.
EOU10 I would find the e-Procurement/e-Supply Chain Management system to
be flexible to interact with.
EOU11 It would be easy for me to become skillful at using the e-Procurement/e-
Supply Chain Management system.
EOU12 I would find the e-Procurement/e-Supply Chain Management system
easy to use.
***********************************************************************
*
 97
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
Demographic questions – U.S. Automotive Industry Survey

Q. Employment History
How long have you worked for your current company?

o Less than one year

o From one to less than three years
o From three to less than five years
o From five years to less than ten years
o From ten years to fifteen years
o From fifteen years to twenty years
o Greater than twenty years

Q. Employment Area
Which of the following is your primary department that you have
responsibility/authority for?

o Purchasing/Procurement
o Engineering/Design
o Sales/Marketing
o Manufacturing/Production
o Human Resources
o Accounting/Finance
o Quality/Inspection

Q. Education
What is the highest degree or level of school you have completed?
If currently enrolled, mark the previous grade or highest degree received.
o Attended high school, received no diploma
o High school graduate - high school diploma or the equivalent (for example: GED)
o Some college credit, no degree
o Associate degree (for example: AA, AS)
o Bachelor's degree (for example: BA, AB, BS)
o Master's degree (for example: MA, MS, MEng, MEd, MSW, MBA)
o Professional degree (for example: MD, DDS, DVM, LLB, JD)
o Doctorate degree (for example: PhD, EdD)

Q. What is your gender?

o Male
o Female
 98
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Q. Employer Type
Please describe your company’s primary level within the U.S. Automotive Supply
Chain
o Tier 1 Supplier to the OEMs – Direct Supplier
o Tier 2 Supplier
o Tier 3 Supplier
o Tier 4 or below
o Non-Supplier, Do not currently have or support any automotive industry business

Q. Does your company currently use e-SCM procurement software?

o Yes
o No

Q. Corporation Income
Based on last year’s earnings, what are your company’s annual revenues?

o Less than $500,000

o From $500,000 to $1 Million
o From $1 Million to $10 Million
o From $10 Million to $50 Million
o From $50 Million to $100 Million
o From $100 Million to $1 Billion
o From $1 Billion to $5 Billion
o From $5 Billion to $10 Billion
o Over $10 Billion
o Unknown

Q. How many total employees are in your company (globally, all locations)?

o Under 100
o 100 to 500
o 500 to 1,000
o 1,000 to 5,000
o 5,000 to 9,999
o 10,000 to 15,000
o 15,000 to 25,000
o 25,000 or more

Thankyou again for your time and assistance in this academic study.

*****************************************************************
 99
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
Appendix D

Research Overview and Consent Form for Prospective Survey Respondents for Use in

Research and Corresponding Data Collection

Automotive Industry Technology Survey

Research Overview and Consent Form

GENERAL INSTRUCTIONS

This survey is part of a study to document the value of electronic technology (e-
Business) in enhancing the sourcing function within the automotive industry.
Such knowledge gained from such research can help professionals and
researchers alike in focusing on the most important procurement
processes/activities that can help an organization to improve its competitive
position in the global economy of today.

Each question within this survey requires that you choose the alternative answer
that best fits your view on that topic. Please note that there are no right or
wrong answers, as I am only interested in your opinions. Participation in this
study is entirely voluntary. This questionnaire should take no longer than 8-10
minutes to complete.

Also, please note that the information provided by you will be treated in
the strictest confidence. Your responses will be entered into a coded
format and in no instance will a person ever be identified as having given a
particular response. By submitting this survey, you are giving your consent to
participate in this research project.

Thank you very much for your help in this study. Please feel free to contact me
if you have any questions, concerns or would like to know more about this
research project. Please start the survey now by clicking on the Survey Link
button below.

Sincerely,

Joseph J. Joyce
Ph.D Student
Eastern Michigan University
College of Technology – Doctoral Department
Phone: (810) 919-3857
Email: jjoyce@[Link]
 100
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
Appendix E

Research Survey Data

Survey - SurveyMonkey® Tabulation Results for Joseph J. Joyce, EMU

Response Summary Total Surveyed: 400 (303 minus bounces)

Total Completed Surveys: 144 (47.5%)

1. Please rate your satisfaction with the amount of purchasing currently

transacted by your organization via means of electronic selections. This
is based on a scale of 1 through 5, with 5 being extremely satisfied and
1 being absolutely no satisfaction at all.

Response Response
Percent Count

1 - No satisfaction
4.2% 6 (6)
at all

2 - Minimal/Partial
20.1% 29 (58)
Satisfaction

3 - Neutral ("half-
33.3% 48 (144)
satisfied")

4 - Mostly Satisfied 38.9% 56 (224)

5 - Extremely 5 (25)
3.5%
Satisfied Avg – 3.17
 101
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

2. Using e-Supply Chain Management (e-SCM) systems improve my

department’s effectiveness.

Response Response
Percent Count

1 - Strongly
2.1% 3 (3)
Disagree

2 - Disagree 9.7% 14 (28)

3 - Neither Agree
37.5% 54 (162)
Nor Disagree

4 - Agree 40.3% 58 (232)

15 (75)
5 - Strongly Agree 10.4%
Avg – 3.47
 102
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

3. Using an e-Procurement/e-Supply Chain Management system allows

my department to accomplish tasks critical to the organization.

Response Response
Percent Count

1 – Strongly
4.2% 6 (6)
Disagree

2 – Disagree 13.2% 19 (38)

3 – Neither Agree
31.6% 46 (138)
Nor Disagree

4 – Agree 45.8% 66 (264)

7 (35)
5 – Strongly Agree 5.9%
Avg -3.34
 103
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

4. Using e-Supply Chain Management (e-SCM)/e-Procurement systems

allow my department to reduce costs.

Response Response
Percent Count

1 – Strongly
3.5% 5 (5)
Disagree

2 – Disagree 9.7% 14 (28)

3 – Neither Agree
36.1% 52 (156)
Nor Disagree

4 – Agree 43.8% 63 (252)

10 (50)
5 – Strongly Agree 6.9%
Avg–3.41
 104
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

5. Using e-Supply Chain Management (e-SCM)/e-Procurement systems

help my department meet staffing goals.

Response Response
Percent Count

1 – Strongly
3.5% 5 (5)
Disagree

2 – Disagree 9.0% 13 (26)

3 – Neither Agree
54.2% 78 (234)
Nor Disagree

4 – Agree 29.9% 43 (172)

5 (25)
Avg-3.21

5 – Strongly Agree 3.5%

 105
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

6. Using e-Supply Chain Management (e-SCM)/e-Procurement systems

makes it easier to perform my departmental functions.

Response Response
Percent Count

1 – Strongly
4.9% 7 (7)
Disagree

2 – Disagree 9.0% 13 (26)

3 – Neither Agree
35.4% 51 (153)
Nor Disagree

4 – Agree 43.1% 62 (248)

11 (55)
5 – Strongly Agree 7.6% Avg-3.40
 106
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Page: 2
1. In general using e-Supply Chain Management (e-SCM)/e-
Procurement systems are useful.

Response Response
Percent Count

1 – Strongly
1.4% 2 (2)
Disagree

2 – Disagree 6.3% 9 (18)

3 – Neither Agree
25.7% 37 (111)
Nor Disagree

4 – Agree 57.6% 83 (332)

13 (65)
5 – Strongly Agree 9.0%
Avg-3.67
 107
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

2. I like using e-Supply Chain Management (e-SCM)/e-Procurement

systems.

Response Response
Percent Count

1 – Strongly
4.2% 6 (6)
Disagree

2 – Disagree 6.9% 10 (20)

3 – Neither Agree
39.6% 57 (171)
Nor Disagree

4 – Agree 43.1% 62 (248)

9 (45)
5 – Strongly Agree 6.3%
Avg-3.40
 108
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

3. Using e-Supply Chain Management (e-SCM)/e-Procurement systems

is in general a good idea.

Response Response
Percent Count

1 – Strongly
2.1% 3 (3)
Disagree

2 – Disagree 4.2% 6 (12)

3 – Neither Agree
20.1% 29 (87)
Nor Disagree

4 – Agree 62.5% 90 (360)

16 (80)
5 – Strongly Agree 11.1%
Avg-3.76

4. I use e-Supply Chain Management (e-SCM)/e-Procurement systems

as often as needed.

Response Response
Percent Count

1 – Strongly
6.9% 10 (10)
Disagree

2 – Disagree 11.8% 17 (34)

3 – Neither Agree 37.5% 54 (162)

 109
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Nor Disagree

4 – Agree 37.5% 54 (216)

9 (45)
5 – Strongly Agree 6.3%
Avg-3.24

5. In order to better interact with my OEM/Tier 1 customers, I use e-

Supply Chain Management (e-SCM)/e-Procurement systems frequently.

Response Response
Percent Count

1 – Strongly
13.9% 20 (20)
Disagree

2 – Disagree 17.4% 25 (50)

3 – Neither Agree
36.8% 53 (159)
Nor Disagree

4 – Agree 26.4% 38 (152)

8 (40)
5 – Strongly Agree 5.6% Avg-
2.92

6. To the extent possible, I use e-Supply Chain Management (e-SCM)/e-

Procurement systems frequently.
 110
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Response Response
Percent Count

1 – Strongly
10.4% 15 (15)
Disagree

2 – Disagree 19.4% 28 (56)

3 – Neither Agree
38.9% 56 (168)
Nor Disagree

4 – Agree 27.8% 40 (160)

5 (25)
5 – Strongly Agree 3.5%
Avg-2.94

7. It is due to the request of my OEM/Tier 1 customers that I use e-

Supply Chain Management (e-SCM)/e-Procurement systems frequently.

Response Response
Percent Count

1 – Strongly
7.6% 11 (22)
Disagree

2 – Disagree 16.7% 24 (48)

3 – Neither Agree
39.6% 57 (171)
Nor Disagree

4 – Agree 29.2% 42 (168)

5 – Strongly Agree 6.9% 10 (50)

 111
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Avg-3.19

Page: 3
1. Using the e-Supply Chain Management (e-SCM)/e-Procurement
system in my job enables me to accomplish tasks more quickly.

Response Response
Percent Count

1 – Strongly
6.9% 10 (10)
Disagree

2 – Disagree 14.6% 21 (42)

3 – Neither Agree
28.5% 41 (123)
Nor Disagree

4 – Agree 45.1% 64 (256)

8 (40)
5 – Strongly Agree 5.6%
Avg-3.27

2. Using the e-Supply Chain Management (e-SCM)/e-Procurement

system improves my job performance.

Response Response
Percent Count

1 – Strongly 5.6% 8 (8)

 112
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Disagree

2 – Disagree 13.2% 19 (38)

3 – Neither Agree
36.0% 52 (156)
Nor Disagree

4 – Agree 39.6% 57 (228)

8 (40)
5 – Strongly Agree 5.6%
Avg-3.26

3. Using the e-Supply Chain Management (e-SCM)/e-Procurement

system in my job increases my productivity.

Response Response
Percent Count

1 – Strongly
6.9% 10 (10)
Disagree

2 – Disagree 13.9% 20 (40)

3 – Neither Agree
31.3% 45 (135)
Nor Disagree

4 – Agree 41.7% 60 (240)

5 – Strongly Agree 6.3% 9 (45)

 113
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Avg-3.25

4. Using the e-Supply Chain Management (e-SCM)/e-Procurement

system enhances my effectiveness on the job.

Response Response
Percent Count

1 – Strongly
6.9% 10 (10)
Disagree

2 – Disagree 13.2% 19 (38)

3 – Neither Agree
34.7% 50 (150)
Nor Disagree

4 – Agree 40.3% 58 (232)

7 (35)
Avg-3.23
5 – Strongly Agree 4.9%

5. Using e-Supply Chain Management (e-SCM)/e-Procurement systems

make it easier to do my job.
 114
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Response Response
Percent Count

1 – Strongly
8.3% 12 (12)
Disagree

2 – Disagree 13.9% 20 (40)

3 – Neither Agree
25.0% 36 (108)
Nor Disagree

4 – Agree 46.5% 67 (268)

9 (45)
5 – Strongly Agree 6.3%
Avg-3.28

6. I find the e-Supply Chain Management (e-SCM)/e-Procurement

system useful in my job.

Response Response
Percent Count

1 – Strongly
6.9% 10 (10)
Disagree

2 – Disagree 10.4% 15 (30)

3 – Neither Agree
26.4% 38 (114)
Nor Disagree

4 – Agree 50.7% 73 (292)

5 – Strongly Agree 5.6% 8 (40)

 115
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Avg-3.38

Page: 4
1. Learning to operate the e-Supply Chain Management (e-SCM)/e-
Procurement system was easy for me.

Response Response
Percent Count

1 – Strongly
3.5% 5 (5)
Disagree

2 – Disagree 9.7% 14 (28)

3 – Neither Agree
52.8% 76 (228)
Nor Disagree

4 – Agree 25.7% 37 (148)

13 (65)
5 – Strongly Agree 9.0%
Avg-3.29

2. I find it easy to get the e-Supply Chain Management (e-SCM)/e-

Procurement system to do what I want it to do.

Response Response
Percent Count

1 – Strongly 1.4% 2 (2)

 116
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Disagree

2 – Disagree 25.4% 36 (72)

3 – Neither Agree
45.6% 65 (195)
Nor Disagree

4 – Agree 24.3% 35 (140)

6 (30)
5 – Strongly Agree 4.2%
Avg-3.05

3. My interaction with the e-Supply Chain Management (e-SCM)/e-

Procurement system is clear and understandable.

Response Response
Percent Count

1 – Strongly
4.9% 7 (7)
Disagree

2 – Disagree 8.3% 12 (24)

3 – Neither Agree
45.8% 66 (198)
Nor Disagree

4 – Agree 37.5% 54 (216)

5 (25)
5 – Strongly Agree 3.5%
Avg-3.26
 117
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

4. I find the e-Supply Chain Management (e-SCM)/e-Procurement

system to be flexible in operation.

Response Response
Percent Count

1 – Strongly
5.6% 8 (8)
Disagree

2 – Disagree 23.7% 34 (68)

3 – Neither Agree
51.4% 74 (222)
Nor Disagree

4 – Agree 15.3% 22 (88)

6 (30)
5 – Strongly Agree 4.2%
Avg-2.89

5. It was easy for me to become skillful at using the e-Supply Chain

Management (e-SCM)/e-Procurement system.

Response Response
Percent Count

1 – Strongly
2.1% 3 (3)
Disagree

2 – Disagree 7.9% 11 (22)

 118
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

3 – Neither Agree
54.2% 78 (234)
Nor Disagree

4 – Agree 29.9% 43 (172)

9 (40)
5 – Strongly Agree 6.3%
Avg-3.27

6. I find the e-Supply Chain Management (e-SCM)/e-Procurement

system easy to use.

Response Response
Percent Count

1 – Strongly
2.1% 3 (3)
Disagree

2 – Disagree 6.3% 9 (18)

3 – Neither Agree
44.4% 64 (192)
Nor Disagree

4 – Agree 40.3% 58 (232)

10 (50)
5 – Strongly Agree 7.0%
Avg-3.43

Page: 5
 119
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

1. Employment History: How long have you worked for your current company?

Response Response
Percent Count

Less than one year (1) 8.3% 12 (12)

From one to less than

8.3% 12 (24)
three years (2)

From three to less than

8.3% 12 (36)
five years (3)

From five years to less

25.7% 37 (148)
than ten years (4)

From ten years to fifteen

18.1% 26 (130)
years (5)

From fifteen years to

12.5% 18 (108)
twenty years (6)

27 (189)
Avg-4.5
(Bet. 10-
Greater than twenty years 15 yrs)
18.8%
(7)

2. Employment Area Which of the following is your primary department that

you have responsibility/authority for?
 120
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Response Response
Percent Count

Purchasing/Procurement
25.7% 37
(1)

Engineering/Design (2) 32.6% 47

Sales/Marketing (3) 16.7% 24

Manufacturing/Production
6.1% 9
(4)

Human Resources (5) 1.4% 2

Accounting/Finance (6) 2.1% 3

Information Technology
1.4% 2
(7)

Quality/Inspection (8) 6.3% 9

Other (9) 7.9% 11

3. Education What is the highest degree or level of school you have

completed? If currently enrolled, mark the previous grade or highest
degree received.
 121
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Response Response
Percent Count

Attended high
school, received no 0.0% 0 (0)
diploma (1)

High school
graduate - high
3.5% 5 (10)
school diploma (or
equiv., GED) (2)

Some college credit,

3.5% 5 (15)
no degree (3)

Associate degree
(for example: AA, 7.0% 10 (40)
AS) (4)

Bachelor's degree
(for example: BA, 50.0% 72 (360)
AB, BS) (5)

Master's degree (for

example: MA, MS,
25.4% 37 (222)
MEng, MEd, MSW,
MBA) (6)

Professional degree
(for example: MD,
1.8% 3 (21)
DDS, DVM, LLB,
JD) (7)
 122
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

12 (96)
Avg-5.31
Doctorate degree (Bachelor)
(for example: PhD, 8.8%
EdD) (8)

4. What is your gender?

Response Response
Percent Count

Male (1) 86.1% 124

Female (0) 13.9% 20

 123
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

5. Employer Type: Please describe your company’s primary level

within the U.S. Automotive Supply Chain

Response Response
Percent Count

Tier 1 Supplier to the

OEMs – Direct 54.9% 79 (79)
Supplier (1)

Tier 2 Supplier (2) 26.3% 38 (76)

Tier 3 Supplier (3) 8.8% 13 (39)

Tier 4 or below (4) 5.2% 7 (28)

Non-Supplier:Do not
7 (35 )
have/support any
5.2% Avg-1.78
direct auto industry
(Bet 1-2)
business (5)
 124
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

6. Does your company currently use e-SCM procurement software?

Response Response
Percent Count

Yes (1) 77.8% 112

No (0) 22.2% 32

7. Corporation Income: Based on last year’s earnings, what are your

company’s annual revenues?

Response Response
Percent Count
 125
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Less than $500,000

3.5% 5
(1)

From $500,000 to $1
0.0% 0
Million (2)

From $1 Million to
7.0% 10
$10 Million (3)

From $10 Million to

14.9% 22
$50 Million (4)

From $50 Million to

7.0% 10
$100 Million (5)

From $100 Million to

27.2% 39
$1 Billion (6)

From $1 Billion to $5
18.4% 27
Billion (7)

From $5 Billion to
7.9% 11
$10 Billion (8)

Over $10 Billion (9) 7.9% 11

9
Unknown 6.1% Avg. -
6.06

8. How many total employees are in your company (globally, all

locations)?

Response Response
 126
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Percent Count

Under 100 (1) 13.9% 20

100 to 500 (2) 9.7% 14

500 to 1,000 (3) 9.0% 13

1,000 to 5,000 (4) 16.0% 23

5,000 to 9,999 (5) 6.3% 9

10,000 to 15,000 (6) 9.0% 13

15,000 to 25,000 (7) 17.4% 25

27
Avg.-
25,000 or more (8) 18.8%
4.81
 127
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
Appendix F

Research Survey Data - Graphical

Joseph Joyce – Ph.D. Study Regarding e-SCM in the U.S. Automotive Industry
Eastern Michigan University

Q1 – Page 1 (PU1)
 128
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Q2 – Page 1 (PU2)
 129
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Q3 – Page 1 (PU3)
 130
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Q4 – Page 1 (PU4)
 131
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Q5 – Page 1 (PU5)
 132
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Q6 – Page 1 (PU6)
 133
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Q7 – Page 2 (PU7)
 134
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Q8 – Page 2 (PU8)
 135
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Q9 – Page 2 (PU9)
 136
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Q10 – Page 2 (PU10)

 137
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Q11 – Page 2 (PU11)

 138
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Q12 – Page 2 (PU12)

 139
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Q13 – Page 2 (PU13)

 140
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Q14 – Page 3 (EOU1)

 141
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Q15 – Page 3 (EOU2)

 142
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Q16 – Page 3 (EOU3)

 143
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Q 17 – Page 3 (EOU4)
 144
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Q18 – Page 3 (EOU5)

 145
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Q19 – Page 3 (EOU6)

 146
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Q20 – Page 4 (EOU7)

 147
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Q21 – Page 4 (EOU8)

 148
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Q22 – Page 4 (EOU9)

 149
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Q23 – Page 4 (EOU10)

 150
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Q24 – Page 4 (EOU11)

 151
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Q25 – Page 4 (EOU12)

 152
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Q26 – Page 5 (DEMO1)

 153
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Q27 – Page 5 (Demo2)

 154
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Q28 – Page 5 (Demo3)

 155
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Q29 – Page 5 (Demo4)

 156
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Q30 – Page 5 (Demo5)

 157
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Q33 – Page 5 (Demo8)

 158
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY

Appendix G

Respondent Group Profile Characteristics (Summary)

Group Characteristics Frequencies
Organizational Purchasing/Procurement (37), Engineering/Design (47),
Departments Sales/Marketing (24), Manufacturing/Production (9), Human
Resources (2), Accounting/Finance (3), Information
Technology (2), Quality/Inspection (9), All Other, Including
Executives (11)
Years with Current Less than 1 year (12), 1 to 3 years (12), 3 to 5 years (12), 5 to
Organization 10 years (37), 10 to 15 years (26), 15 to 20 years (18), 20 or
more years (27)
Education High School (5), Some College (5), Associates Degree (10),
Bachelors Degree (72), Master’s Degree (37), Doctorate
(12), Professional Degree (MD, JD, etc.) (3)
Gender Male (124), Female (20)
Under 100 employees (20), 100 to 500 (14), 501 to 1000
(13), 1001 to 5000 (23), 5001 to 9999 (9), 10000 to 15000
Number of Employees*
(13), 15,001 to 25,000 (25), 25,001 or more (27)
Employer Type Tier 1 Direct Supplier to OEM (79), Tier 2 (38), Tier 3 (13),
Tier 4 or Below (7), Non-Supplier to Auto OEM Industry (7)
Does Organization Yes (112), No (32)
Currently Use e-SCM
software ?
Corporation Income Less than $500k (5),From $500k to $1MM (0), From $1MM
(Annual Revenues) to $10MM (10), From $10 MM to $50MM (22), From $50
to $100 MM (10), From $100 MM to $1B (39), From $1B to
$5B (27), From $5B to $10 B (11), Over $10B (11)
Note: *This refers to the number of employees at the respondent’s respective company.

Appendix G shows the overall breakdown in terms of each captured demographic.

These demographic questions help to better define each respondent’s respective

organization/company along with classifying the individual respondent in terms of

various professional categories.

 159
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
Appendix H

Biography of Dr. Fred D. Davis

Dr. Davis provided the seminal work and research on the TAM model, both in

theory development as well as in practical applications. Dr. Davis serves as Associate

Editor for the scholarly journal Management Science, and has published extensive

research on user acceptance of technology in the workplace and computer-assisted

planning and decision making. In addition to prior research at institutions such as the

Massachusetts Institute of Technology, the University of Michigan and the University of

Maryland, he is currently the Distinguished Professor and David D. Glass Chair in

Information Systems at the Sam M. Walton College of Business at the University of

Arkansas (Faculty Profile, University of Arkansas, 2014).

 160
ANALYSIS OF e-SCM IN U.S. AUTO INDUSTRY
Appendix I

Biography of Everett M. Rogers, Ph.D.

Dr. Rogers (March 6, 1931 - October 21, 2004) provided the seminal work and

research on the Innovation Diffusion model, both in theory development as well as in

practical applications, originating from his seminal text, The Diffusion of Innovations

(1963). From this work and further studies, Dr. Rogers coined the gradual terms

“Innovators, Early Adopter, Early Majority, Late Majority and finally, Laggards”. From

his origins on his family farm in Carrol, Iowa, Dr. Rogers observed the importance of

innovation at an early age. As his father initially declined and then eventually accepted,

the innovation of hybrid grain and eventual resulting higher output. His value of his

own education was likewise started in a one-room schoolhouse and completed with his

doctorate from Iowa State University. Rogers’ 30 books–translated into 15 languages–

and more than 500 articles were testament to his extensive research on user and

organizational acceptance of innovations in the workplace.

Almost 47 years of his life was dedicated to the fulfillment of his role as teacher

and mentor, including faculty positions at Ohio State University, Universidad Nacional

de Colombia, Michigan State University, University of Michigan, Stanford University,

Universite de Paris, University of Southern California, and finally the University of New

Mexico, where as department chair he was instrumental in initiating a doctoral program

in 1995. As a scholar, his impressive body of work has provoked social and

industrial/organizational change, inspired new ideas and insights, and influenced the

lives of countless others. His most significant contribution, however, is the living legacy

of his students. (University of New Mexico, 2013).