Supply chain information integration, flexibility, and operational performance

Abstract

Purpose Supply chain flexibility is crucial for firms to respond to uncertain circumstances caused by environmental factors, such as the diversity of customer demands, problems of product safety, and adjustments of industrial policies. To investigate the approach to enhance supply chain flexibility, the purpose of this paper is to propose that both internal and external information integration contribute to reactive and proactive supply chain flexibilities, which elicit high operational performance. Design/methodology/approach Using a sample of 84 food companies that have been listed three years in China and content analysis based on their annual reports, evidence was collected to test the hypotheses through hierarchical regressions. Findings The results reveal that external information integration results in both reactive and proactive flexibilities, which further improve operational performance. Internal information integration positively affects both reactive and proactive flexibilities, but its mediating role was not determined in the study. Originality/value The research provides insights into how supply chain flexibility mediates the effect of supply chain information integration on operational performance in the context of the Chinese food industry.