Supply chain integration, information technology, market orientation and firm performance in container shipping firms

Abstract

Purpose – The purpose of this paper is to use a theoretical framework (i.e. resource-based view) to investigate causal relationships between the supply chain integration, market orientation, information technology (IT) application and firm performance of container shipping firms in Taiwan. Design/methodology/approach – The data are collected from 124 container shipping firms in Taiwan. The methodologies used in the paper are exploratory factor analysis, confirmatory factor analysis and structural equation modeling. Findings – The findings indicated that IT application and market orientation positively influence supply chain integration. It revealed that IT-based and market-oriented firms more easily integrate market information related to partners, departments and customers. Further, supply chain integration and market orientation have a positive effect on firm performance. Research limitations/implications – Such a result indicated a market-oriented firm quickly responds to market information and competitors’ strategies; and thus, it would make effort to offer satisfactory customer services in dynamically fluctuating markets, and obtain better firm performance. Also, the integration provides higher operation efficiency and obtains an enhanced performance improvement. Practical implications – The results also indicated that firms are able to develop their market-oriented strategies through electronic information transmission and exchange platform. Based on the study’s findings, managerial strategies are proposed to improve firm performance. Originality/value – This paper clarifies the concept of supply chain integration, market orientation and IT application in the context of container shipping, and investigates the inter-relationship between supply chain integration, market orientation, IT application and firm performance and develop a conceptual model in the context of container shipping.