The contingency effects of dependence relationship on supply chain information sharing and agility

Abstract

PurposeSupply chain agility (SCA) is the primary strategy for reducing impacts and quick recovery when supply chains experience a disruption risk, such as the COVID-19 pandemic. This study will investigate how SCA can be achieved through supply chain information sharing (SCIS) under the different dependence relationships (DR) with suppliers or customers. The purpose of this paper is to investigate this issue.Design/methodology/approachBased on information process and resource dependency theories, this study constructs and empirically tests a proposed model of the relationships amongst the three dimensions of SCIS and the two areas of SCA and the contingency effects of two types of DR on those relationships. Using a dataset collected from 400 manufacturers in China, the authors tested this theoretical model using multi-group and structural path analysis.FindingsThe results of the structural path and multi-group analyses show that (1) all dimensions of SCIS are positively correlated with both areas of SCA and (2) dependence on the supplier and dependence on the customer have completely different impacts on the relationship between SCIS and SCA.Originality/valueThis study can improve the understanding of the multidimensional concepts of SCIS and SCA and relationships between them under two different DR conditions in the Chinese manufacturing setting. It contributes to IS and the SCA literature and provides theoretically driven and empirical explanations for the diverse dynamics between the dependence on the supplier and customer.