Does Strategic Supply Chain Information System Leads To Efficient Supply Chain and Improved Performance in Indonasin Firms

The goal of this study is to explore the association among supply chain strategy (SCS) and supply chain information systems (SCIS) strategy and also its influence on efficient supply chain and firm performance (FP). Based on information processing theory (IPT), established hypotheses presenting moderating impact of two supply chain information system strategies (SCIS), information system for efficiency and information system for flexibility. These hypotheses are based on the separate relationship among the two SC approaches i.e. Lean and Agile, and SC efficiency and FP. On the basis of data gathered from top management working in procurement, logistics and SC departments of 250 Indonesian firms, for the survey. The gathered data were analysed by using tools like confirmatory analysis and structural equation modelling (SEM), validated our hypotheses. The result shows that IS for efficiency and flexibility, IS strategy strengthen the association among Lean (Agile) SC strategy and SC efficiency. Moreover, there is positively significant association was revealed among SC efficiency and FP and moderating association among SC efficiency on the association among SC strategy and FP was also found. This research offers novel addition in available research by offering theoretical foundation and supportive results that SC efficiency can be enhanced if SC and IS strategies are implemented simultaneously.

[1]  R. Narasimhan,et al.  INFORMATION SYSTEM UTILIZATION STRATEGY FOR SUPPLY CHAIN INTEGRATION. , 2001 .

[2]  L. V. Wassenhove,et al.  Sustainable Operations Management , 2005 .

[3]  Marianthi G. Ierapetritou,et al.  From process control to supply chain management: An overview of integrated decision making strategies , 2017, Comput. Chem. Eng..

[4]  J. Gattorna,et al.  SUPPLY CHAIN COST MANAGEMENT AND VALUE-BASED PRICING , 2005 .

[5]  Mahmoud Al-Odeh.  Supply Chain Information Systems Technologies and Management Strategies in Northern Minnesota , 2016 .

[6]  Alain Pinsonneault,et al.  IT and Firm Agility: An Electronic Integration Perspective , 2012, J. Assoc. Inf. Syst..

[7]  Karthik N. S. Iyer.  Information Technology and Supply Chain Collaboration: Examining the Contingent Role of Environmental Uncertainty , 2011, Inf. Resour. Manag. J..

[8]  L. Cronbach.  Coefficient alpha and the internal structure of tests , 1951 .

[9]  J. Browne,et al.  Development of an extended enterprise performance measurement system , 2005 .

[10]  A. H. Sajeeb Rahiman,et al.  The effect of supply chain integration on information sharing: Enhancing the supply chain performance , 2013 .

[11]  N. MarieJohnson,et al.  Information Technology in Supply Chain Management , 2008 .

[12]  Bhanu S. Ragu-Nathan,et al.  Development and validation of a measurement instrument for studying supply chain management practices , 2005 .

[13]  Wantao Yu,et al.  The effects of supply chain integration on customer satisfaction and financial performance: An organizational learning perspective , 2013 .

[14]  K. Tan,et al.  Supplier Selection and Assessment: Their Impact on Business Performance , 2002 .

[15]  Vivek Choudhury,et al.  Strategic Choices in the Development of Interorganizational Information Systems , 1997, Inf. Syst. Res..

[16]  M. Sarstedt,et al.  A new criterion for assessing discriminant validity in variance-based structural equation modeling , 2015 .

[17]  Turan Erman Erkan,et al.  Supply chain performance measurement: a literature review , 2010 .

[18]  Markus Biehl,et al.  Selecting internal and external supply chain functionality: The case of ERP systems versus electronic marketplaces , 2005, J. Enterp. Inf. Manag..

[19]  Xiande Zhao,et al.  Supply Chain Strategy, Product Characteristics, and Performance Impact: Evidence from Chinese Manufacturers , 2009, Decis. Sci..

[20]  Mohammad J. Tarokh,et al.  Preventing failure in IT-enabled systems for supply chain management , 2009 .

[21]  C. Fornell,et al.  Evaluating structural equation models with unobservable variables and measurement error. , 1981 .

[22]  Ilsoon Shin.  Adoption of Enterprise Application Software and Firm Performance , 2006 .

[23]  Executive Social Network and Enterprise Innovation , 2019, Journal of Accounting, Business and Finance Research.

[24]  Mark Pagell,et al.  Understanding the factors that enable and inhibit the integration of operations, purchasing and logistics , 2004 .

[25]  Jiancheng Chen,et al.  A Comparison of Impacts of Climate Change on Urban Poverty and Rural Poverty in the North-West China , 2019, International Journal of Management and Sustainability.

[26]  Kyung Kyu Kim,et al.  Interorganizational information systems visibility and supply chain performance , 2014, Int. J. Inf. Manag..

[27]  Elnouaman Samadi,et al.  The Relationship between IT and Supply Chain Performance: A Systematic Review and Future Research , 2016 .

[28]  John N. Pearson,et al.  Strategically managed buyer–supplier relationships and performance outcomes , 1999 .

[29]  Lawrence W. Lan,et al.  Selection of optimal supplier in supply chain management strategy with analytic network process and choquet integral , 2009, Comput. Ind. Eng..

[30]  Jerry N. Luftman,et al.  Achieving and Sustaining Business-IT Alignment , 1999 .

[31]  Gülçin Büyüközkan,et al.  Digital Supply Chain: Literature review and a proposed framework for future research , 2018, Comput. Ind..

[32]  G. Hult,et al.  Bridging organization theory and supply chain management: The case of best value supply chains , 2007 .

[33]  John C. Henderson,et al.  Strategic Alignment: Leveraging Information Technology for Transforming Organizations , 1993, IBM Syst. J..

[34]  M. Frohlich,et al.  Arcs of integration: an international study of supply chain strategies , 2001 .

[35]  M. Christopher,et al.  A taxonomy for selecting global supply chain strategies , 2006 .

[36]  Frantz Rowe,et al.  Digitalizing interorganizational relationships: Sequential and intertwined decisions for data synchronization , 2019, Int. J. Inf. Manag..