1. Introduction
As the rapid development of the digital economy offers unlimited opportunities for innovation, especially in the manufacturing industries, many companies are competing with each other to create innovative products to achieve more profitable market share and to win the business competition with global competitors based on customer preferences for existing product trends [
1,
2,
3,
4,
5]. By increasing the variety of products according to demand, quality, style, function, packaging, and size, many companies believe that owning various products will raise the potential profits of these companies [
6,
7,
8,
9,
10]. Although in a real-world situation, the enhancement of product variety usage is believed to yield a considerable return, it cannot completely contribute to the profitability of companies [
2,
3,
11]. Managing the product variety and anticipating the potential negative consequences from uncontrollable product variations are essential to realizing the company’s profitability [
1,
4,
8,
11,
12,
13,
14,
15]. Additionally, introducing new product variation strategies will increase the number of materials needed by the company and the interdependence or relationship between materials to produce the products [
7,
8,
9,
16]. In addition, managing product variety is a challenging problem, especially considering the increasing complexity of supply chain networks [
8,
13,
17].
A supply chain network consists of multiple businesses working together to move products or services from their origin to the final customer. Those processes are based on the flow of materials, information, and financial transactions from upstream to downstream supply chains [
17,
18,
19,
20]. The upstream supply chain refers to the process of obtaining raw materials from suppliers and transforming them into finished products closer to the source of goods. In contrast, the downstream supply chain involves distributing and selling the finished products to the end consumer, typically at the end of the supply chain network, where the goods are delivered to the final customer. In other words, a supply chain network can be defined as a complex system composed of various interconnected activities. These activities involve planning and managing the entire process of moving products or services from their origin point to the end consumer, including integration between the company and its channel partners within uncertain conditions [
6,
17,
21,
22,
23,
24,
25]. Uncertain changing conditions are constantly evolving, and the supply chain network is constantly adapting to them, making it a dynamic and challenging system to be managed. An important element in managing the supply chain network is the intensive integration between various functions and activities [
25,
26,
27,
28,
29,
30]. Maintaining integration among all entities involved in the supply chain is a crucial component to ensure the effectiveness and efficiency of its operation. Its integration can help minimize delays, errors, and other disruptions, improving the supply chain’s overall performance. Integration within the supply chain network is a crucial factor enabling the company and its various components to work together as a cohesive and interdependent entity [
17,
31,
32]. It is generally viewed from three perspectives: suppliers, customers, and the combined perspective of both parties [
26,
33,
34,
35,
36]. The supplier–customer perspective involves considering the needs and expectations of both parties, as well as the processes and activities within the supply chain to address their needs. Examining the supply chain from this perspective allows for a more comprehensive understanding of the system and potential opportunities for optimization and improvement. To accomplish supply chain integration, it is important for the company to focus on collaboration and coordination within the supply chain network to enhance supply chain performance [
30,
31,
32,
36,
37,
38]. One key aspect to successfully achieving effective supply chain integration is managing information exchange among the various entities involved in the supply chain network.
Information exchange can be defined as information sharing between parties in the supply chain network, significantly impacting the success of collaboration and coordination strategies among partners in the supply chain network [
17,
26,
27]. This exchange includes all types of data affecting collaboration and coordination among supply chain partners, such as information demand, inventory status, production schedules, purchase orders, and shipment schedules [
17,
26]. To facilitate the information exchange between supply chain partners, an influx of information exchange has to be handled effectively and efficiently due to increasing supply chain network complexity. In this paper, we aim to bridge the gap by investigating two key research questions: is there any impact from the influx of information exchange on product variety and the supply chain network? What are the key factors that can influence the influx of information exchange from the perspective of different industries? To answer this research question, we perform qualitative research based on a case study on various industries and companies through major and minor propositions in which the high supply chain complexity causes an influx of information exchange due to increasing product variety. To summarize, our key contributions are as follows:
This paper uses qualitative research based on a case study to investigate and answer our research question, using both major and minor propositions to highlight the impacts of product variety and supply chain networks on the influx of information exchange.
This paper categorizes and visualizes correspondent opinions to facilitate deep analysis, including factors such as product variety, supply chain network, and information exchange.
This paper analyzes our case study results, including factors such as product variety, supply chain networks, and information exchange by categorizing the interview raw data.
This paper discusses the important key factors that can influence the influx of information exchange from the perspective of different industries.
This paper comprises several sections to comprehensively explore the topic at hand. In
Section 2, we delve into the fundamental concepts underpinning the work presented in this paper, such as product variety, supply chain network, and information exchange. We then provide a detailed description of our proposed study, highlighting both our major and minor propositions, in
Section 3. In the following
Section 4, we present the experimental results and their analysis obtained from our study, along with a thorough examination of the data collected from multiple industries. A more in-depth discussion and conclusion of these results are presented in
Section 5. Then,
Section 6 considers the implications of our findings and explores the impact of product variety and supply chain networks on the influx of information exchange.
Section 7 discusses the study’s limitations and outlines potential research directions for future work.
3. Methodology
Our work is based on a case study to thoroughly investigate our research questions and reach well-informed conclusions. As a part of this study, we used both major and minor propositions to describe and understand our research investigations clearly. Both major and minor propositions, together with the process of our study, are depicted in
Figure 1. First, the major proposition started with our literature study [
67] to identify the current issue and ended with designing the conceptual modeling framework of product variety, supply chain network, and information exchange. Then, our minor proposition is to break each domain down into the attributes and elements to support our interview questions.
3.1. Major Proposition
Major propositions are the fundamental assumptions, beliefs, and values guiding the research process and shaping the interpretation of the results. These propositions are the foundation for our research and provide a framework for examining our research questions to reach well-informed conclusions. From our literature study [
67], we identify the initial assumptions of our qualitative-based research. This study helped us identify the current problem and understand the existing knowledge on our topic. Then, we formulate our research investigation from three interconnected domains: product variety, supply chain network, and information exchange. By considering the major proposition carefully, we can better understand the implications of our findings for the impact of product variety and supply chain network on the influx of information exchange and draw out meaningful attributes and elements to support our interview questions in this case study.
The starting point for our major proposition is to identify the impact of product variety and supply chain networks on the influx of information exchange. We aim to demonstrate that an increase in the number of product varieties owned by a company will affect the supply chain network and information exchange. In other words, we summarize our major proposition as follows:
A high degree of product variety correlates with increased supply chain network complexity.
A high level of product variety and supply chain complexity is associated with an increased frequency of the influx of information exchange within the supply chain network.
Conceptual Modeling Framework
In
Table 1, the conceptual modeling framework shown is a comprehensive explanation related to the leading theory used for synthesizing the results of our study [
67] and for developing an idea about the problem being studied. It provides a structured way to understand and represent the research topic’s relevant key concepts, relationships, and processes. Furthermore, the domain of our conceptual modeling refers to the specific area or subject matter being studied. It is the context in which the conceptual modeling framework is applied to formulate our propositions. Analysis of the correlations of those domains generally aims to describe the situation or condition of our research objective in general. In this analysis, the information obtained is still in the initial stage, which is only a general description or domain of the studied object. Identifying the domain is recommended to conduct a related analysis connecting categories [
39]. Based on previous research [
6,
7,
8,
17,
21,
22,
23,
26,
27,
33,
35,
36,
57,
67,
83,
84] connected to the effect of product variety in the supply chain network and the influx of information exchange, a conceptual modeling framework is formulated to combine and correlate product variety, supply chain network, and information exchange. This conceptual modeling framework has been summarized in our literature study [
67], which both theoretically and empirically shows a strong relationship with information exchange in the supply chain network, particularly in helping companies with their integration related to product variety.
3.2. Minor Proposition
To support and elaborate on our research questions in the major propositions, we considered these minor propositions alongside the major proposition to gain a more detailed and nuanced understanding of the relationship among product variety, supply chain network, and information exchange. We found that these three domains are closely interrelated and that the minor propositions provide essential insights into which factors influence the flux of information exchange. By carefully considering the minor propositions, we can draw meaningful conclusions from our interview data and discuss the factors influencing the influx of information exchange from the perspective of different industries.
3.2.1. Attribute and Supporting Elements
In creating practical interview questions for a case study, attributes can be a valuable tool because they help to identify the key pieces of information that need to be gathered from correspondents. It is achieved by understanding the definitions of attributes from our literature study [
67] and domain analysis. The attributes are derived from domain analysis and represent the research topics. Each attribute has several supporting elements that can help to gain a deeper understanding of the subject before the interview begins. By carefully considering these attributes and their related elements, well-informed and targeted interview questions can be developed, allowing for the extraction of valuable insights.
Product Variety Domain
Product variety, or the number and types of products a company offers, is influenced by the complexity of product and material characteristics. Product characteristics refer to the features and attributes of a product that differentiate it from other products, such as the materials used in production, design, appearance, and any special features or functions it possesses [
6,
7,
8,
57]. On the other hand, material characteristics refer to the properties and characteristics of the materials used in producing a product, including material type, material interactions, and material sources [
7,
8]. The complexity of these characteristics can impact a company’s ability to produce a diverse range of products and subsequently affect the overall product variety offered because, when a company makes more products, the materials used in the production process become more complex. As the number of products increases, the company may need to use a broader range of materials to meet its customers’ diverse needs and preferences. Additionally, as the company expands its product line, it may need to use materials with more advanced properties or characteristics to meet its products’ technical and performance requirements [
6,
57]. As a result, the complexity of the materials used in the production process increases as the company produces more products. In our minor proposition, we aim to identify and describe the factors that significantly impact fluctuations in the increase of product variety.
Supply Chain Network Domain
Establishing a well-organized and systematic supply chain network performing effectively and efficiently is crucial for a company to focus on coordinating and collaborating with supply chain partners [
17,
26]. Optimizing the performance of the supply chain is necessary for all members of the chain to work together in a coordinated and collaborative manner. This performance involves coordinating production, transportation, distribution, and sharing information and resources to enhance efficiency and effectiveness throughout the supply chain [
17,
35]. By prioritizing coordination and collaboration among supply chain partners, a company can create a strategic and systematic supply chain network that is both effective and efficient. In our minor proposition, we seek to analyze the coordination strategies that have the most impact on supporting the success of the supply chain network.
Information Exchange Domain
In a more complex supply chain collaboration, the information exchange between supply chain partners becomes more difficult [
21,
22]. Therefore, the role of information technology is to facilitate, communicate, and coordinate the exchange of information within the supply chain network [
27,
84]. Information technology can help to streamline and optimize the flow of information within the supply chain, enabling more efficient and effective collaboration among supply chain partners. Our minor proposition is to investigate which factors are considered the most influential on the influx of information exchange within the supply chain and the implementation of information technology.
3.3. Data Collection
To collect data through an interview in our case study, we follow three main procedures: contacting potential correspondents by phone or email, conducting semi-structured interviews, and reviewing and cross-checking the results. These steps help us gather comprehensive information about our case study and ensure the accuracy of the collected data.
3.3.1. Telephone and Email Inquiry
Both telephone and email inquiries can be valuable methods for collecting data through interviews. Telephone inquiries involve contacting correspondents by phone and asking them to answer interview questions over the phone. In contrast, email inquiries involve sending correspondents an email with a link to an online interview or a set of interview questions they can respond to via email. In our research, we often send interview questions to targeted companies and follow up with phone interviews. Both telephone and email inquiries have strengths and limitations, and carefully considering the method most appropriate for qualitative-based research beforehand is essential.
3.3.2. Semi-Structured Interviews
In our research, we use semi-structured interviews as a method of data collection to gather detailed information about a specific case or phenomenon. These interviews involve semi-structured conversations with the correspondents to understand the topic better. A semi-structured interview allows us to follow a general outline of topics and also allows for flexibility to follow up during the conversation. We often send the interview questions to the correspondents beforehand to give them more time to consider the questions and better understand the topics. Through these interviews, we aim to gather detailed, qualitative data to gain a more nuanced understanding of the experiences and perspectives of the correspondents.
3.3.3. Re-Review or Cross-Checking Interview Results with Correspondents
We re-review or cross-check the interview results with correspondents to ensure the accuracy and completeness of the data we have collected. This process involves reviewing the results of our interviews and comparing them to the responses of the correspondents to verify that the data are accurate and consistent. This procedure may involve following up with correspondents to clarify any confusion or discrepancies during the interview process. By re-reviewing or cross-checking our interview results with the correspondents, we can ensure that we have collected reliable data that accurately reflect the experiences and perspectives of the correspondents.
3.4. Categorical Data
After the interview data have been collected, the subsequent process is data categorization. This categorization process aims to extract the maximum amount of information from the correspondents. However, before the data can be categorized, a challenge may arise to standardizing the correspondents’ perceptions to categorize the data effectively. This challenge is that correspondents may express similar ideas but with different styles of explanation, which can create confusion when categorizing the data. Additionally, correspondents may have different levels of understanding or expertise in the discussed topic, further complicating the categorization process. To elaborate further, data categorization involves grouping the interview responses into different categories based on their meaning or subject matter similarities. Furthermore, it is important to approach data categorization critically, considering the nuances and complexities of the interview responses, so that we can ensure the resulting categories accurately capture the key themes and ideas expressed by the correspondents, providing a rich source of information for further analysis and interpretation.
Formulating a strategy for categorizing the data can help us visualize and analyze the data for future research when our survey contains rich attributes and perceptions. By categorizing the data, we can identify patterns and trends in the responses, which can help us understand the experiences and perspectives of the correspondents. This strategy can help us better understand the major and minor propositions and identify areas for further investigation. Additionally, visualizing the data in this way can make it easier to communicate our findings and draw meaningful conclusions from the data. Overall, categorizing the results of our interview is a valuable tool for data analysis and visualization to assist in interpreting the results and informing future research.
5. Conclusions and Discussion
The main focus of this paper is to shed light on the interconnection between product variety, supply chain networks, and the influx of information exchange. Specifically, we state that increased product variety within a supply chain can lead to increased complexity within the supply chain network and the influx of information exchange. In this section, we summarize our findings from major and minor propositions to add knowledge about the correlation between product variety and supply chain networks on the influx of information exchange. Our first major proposition investigates the correlation between product variety in
Section 4.2.1 and supply chain networks in
Section 4.2.2. From those sections, we state that high product variety correlates with increased supply chain network complexity. In the context of a supply chain network, the level of the supply chain network is referred to as the position of the different components within the chain. These components can be divided into two broad categories: upstream and downstream. Upstream components refer to the source of the material (suppliers), and downstream components refer to the end stage of the supply chain (customers).
From the downstream supply chain perspective, increasing the number of product variations in “Product Characteristics” (main product type, new product introduced, and market share) may affect the broader market share coverage of the company in “Supply Chain Partner” (customer). Our findings reveal that the broader the market share coverage of the company and the further the distance between the company and the customer, the more complex the product distribution process becomes. In our interview data shown in “Product Characteristics”, some companies serve not only individuals but also industrial customers. The company has to manage and supply its products to distributors, resellers, wholesalers, or end customers to ensure they appropriately distribute products. Most companies supply the customer demand domestically and internationally to broaden their market share coverage to increase profits and customer loyalty, as shown in “Supply Chain Partner”. Derived from our findings, new product introduction influences not only individual customers but also industrial customers. There is interdependence among the company, industrial customers, and individual customers for introducing innovative products. Individual customers significantly influence product marketing, societal trends, and customer demand, which may influence the level of industrial customers. Based on our correspondents in “Product Characteristics”, companies consider several factors influencing the production of new products, such as price, advertisement, product quality, trend, packaging, innovation, and technology. These processes may increase the complexity of the supply chain because the more complex the customer demand for a new product, the more information exchange is needed to meet all demands. In addition, the increasing demand for products may influence the material required to produce the finished product and material procurement to supply the material, where this process is related to the upstream supply chain (supplier).
In the upstream supply chain context, as a company’s product variety and new product innovation increase, the bill of materials and the interdependency between the materials will also increase. Our minor propositions show that the attributes affecting the upstream supply chain are in the “Product Characteristics” (main product type and new product introduced), “Material Characteristics” (material type, material interactions, and material source), and “Supply Chain Partner” (supplier), where the higher the material required to produce finished products, the more complex the supply chain network. We confirm that the company must develop more effective and efficient resource planning strategies to meet its high demand for raw materials, analyzed in “Material Characteristics” (material interactions and material source), where it uses various strategies to fulfill its high demand. Adopting the corespondents’ opinion, keeping stock of materials is considered the most effective strategy for maintaining material requirements in production. However, we found that this strategy has drawbacks, such as the product’s shelf life and storage capacity. To address the aforementioned problem, derived from our findings, alternative supplier strategies and finding the best supplier play a significant role in the material procurement process, when the company not only relies on fixed suppliers but also has various domestic and international alternative suppliers to fulfill its raw material requirement. However, based on our interview data, this strategy has a limitation: if the company has never transacted with the supplier, there is no established trust between the supplier and the company. Therefore, the company should consider several basic specifications in selecting suppliers, such as quality, price, availability, and delivery time based on our interview data in “Material Characteristics”.
In summary, the influential factor shown in “Product Characteristics” (main product type and new product introduced), “Material Characteristics” (material type, material interactions, and material source) and “Supply Chain Partner” (supplier and customer) reveals that product variety affects the complexity of the supply chain network, both upstream and downstream. Based on our findings, the upstream supply chain is related to the high number of suppliers the company manages to find to meet the demand for raw materials, while the downstream supply chain relates to the distribution of products to customers that the company must manage. With the increasing number of suppliers and customers that the company has, the number of tiers in the supply chain network will become more complex. The high level of complexity in the supply chain network may influence an increased frequency of information exchange between the company and its supply chain partners.
On the other hand, our second major proposition states that a high level of product variety and supply chain complexity is associated with an increased frequency of information exchange (
Section 4.2.3) within the supply chain network (
Section 4.2.2). To effectively address the increased complexity of the supply chain network and the intensity of information exchange resulting from an expansion in the variety of products, the company must coordinate and manage a diverse range of products and materials, a significant number of suppliers, customers, and other partners within the supply chain, and an increased intensity of information exchange through careful planning and management.
In the context of coordination of our previous minor proposition in “Coordination” (coordination mechanism), several factors influence the integration of coordination among supply chain partners, including coordination mechanisms correlated with coordination communications, activities, and challenges. In addition, derived from our findings, we found that the coordination process cannot be separated from the cooperation between companies and their supply chain partners. Based on our minor propositions in “Supply Chain Partner” (supplier and customers), adopting the corespondents’ perspective, supply chain partners play a significant role in the sustainability of a company’s business processes in the supply chain network. These factors (“Coordination” and “Supply Chain Partner”) must work together to create a more effective and efficient supply chain network coordination. To ensure that coordination and collaboration processes can run more effectively and efficiently, the companies should manage their information exchange between companies and supply chain partners. Our findings reveal that information exchange within a company and among supply chain partners plays a crucial factor affecting the company’s business processes, explained in “Information Sharing” (information flow). From the supplier perspective, information exchange focuses on coordination related to material procurements used in the production process. Meanwhile, from the customer perspective, information exchange relates to product demand, marketing, and distribution.
In the explanation for our second major proposition and the domain in the minor proposition in
Section 4.2.2 (coordination and supply chain partner and
Section 4.2.3 (information sharing), we found that a high level of product variety and supply chain network complexity affect the influx of information exchange between supply chain partners. Derived from our findings, with the increasing product variety offered by the company, the number of suppliers and customers that must be managed also increases, resulting in a more complex supply chain network. In a more complex supply chain network, the information exchange between the company and its supply chain partners will also increase. It is essential for companies to manage information exchange between supply chain partners (suppliers and customers) to support the success of coordination and collaboration processes in the supply chain network based on our recommendation.
Managing the complexity of the supply chain network and the high intensity of information exchange within the company may involve using advanced IT systems. IT systems provide a facility to communicate, coordinate, carefully plan, and manage the supply chain network. While increasing product variety can expand product marketing and enable access to new markets, it is essential to consider the potential impact on supply chain complexity and the need for improved coordination. Our findings reveal that the design of the supply chain network can significantly impact the efficiency and effectiveness of information technology exchange within the supply chain. The various elements of the supply chain that are connected and interact with each other can significantly influence the ability to exchange information. Various factors related to implementing information technology in “Information Technology Application” (information carrier) must be considered to achieve the success of supply chain network integration. Derived from our findings, optimally designed information technology can facilitate more efficient and effective communication and coordination within the supply chain and business process, expanding market share, increasing profitability, and improving overall performance.
7. Limitations and Future Work
While we cannot give specific suggestions as to what IT solutions would be most appropriate for a particular company, we can provide an overview of the benefits of IT implementation from the perspective of our correspondents. For example, if a company has a particular set of characteristics and business conditions, we can identify the IT solutions that similar companies have successfully implemented. We have not discussed the results of all supporting elements in this research and have only included the ones most commonly mentioned by our correspondents.
Conducting quantitative research is essential for gaining a deep and comprehensive understanding of the correlation level among product variety, supply chain networks, and the influx of information exchange. This research involves collecting and analyzing numerical data, allowing for a more precise and objective understanding of the relationships among these domains. One of the key benefits of quantitative research is the ability to draw statistically significant conclusions based on the data collected from correspondents. By analyzing these data, we can accurately determine the strength and direction of the correlations among the three domains. This level of understanding is crucial for making informed decisions and effectively addressing any arising issues. In addition, quantitative research allows for advanced statistical techniques, such as regression and multivariate analysis, to further explore the relationships between the three domains. By analyzing the result between a case study and quantitative research, we can better understand the influential factors on product variety, supply chain networks, and the influx of information exchange.
Simulating our findings is another crucial step to understanding the correlation between those domains. This process involves creating a virtual model of the interactions among supply chain partners, allowing us to observe and analyze the simulation results in a controlled environment. One of the key benefits of simulation is the ability to test different scenarios by changing the level of the factors to see how they impact supply chain partners to identify the influential factors quickly. By manipulating the variables for each factor in the simulation, we can gain valuable insight into how the correlation may change under different conditions.
In conclusion, for future work, we can measure a company’s readiness for IT implementation from the perspective of product variety, supply chain, and the influx of information exchange based on the collected data from both qualitative and quantitative sources and based on simulations. Using these data, we can also provide an opinion or suggestion on the technology most suitable for the company’s current business conditions. It is important to consider the business’s current and future needs when determining the most appropriate technology solution. This can involve assessing factors such as the complexity of the company’s operations, the level of integration required with existing systems, and the resources and capabilities available to implement and maintain the technology. By carefully evaluating these and other factors, we can help the company make informed decisions about the technology that best supports its business process and objectives.