Identification of the Constructs Related to IT Investment on Supply Chain Integration for Improving the Firm Performance

research examines the impact of IT investment on the cost structure of the firm and it also explores the different factors related to IT investment that directly or indirectly can affect the automation process of supply chain as well as performance of the firm. After the brief literature survey this paper identifies different independent variables such as internal and external integration, physical and information integration, use of technology, external environmental condition, internal operational characteristics and appropriate technology. These variables have been identified as important for the automation process of supply chain integration with the use of information technology. Further this paper have taken these variables (dependent and independent) for making a robust model where independent variables are used to improve the automation process of supply chain integration for minimizing production and coordination cost and hence improve the firm performance. The presented model can be further taken for validating empirically. KeywordsInvestment, Supply Chain Integration, Production cost, Transaction Cost, Coordination cost, Cost function, Firm performance.

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