The different impact of inter-organizational and intra-organizational ICT on supply chain performance

Abstract

Purpose – The purpose of this paper is to clarify the different roles of intra- and inter-organizational information and communication technology (ICT) in improving supply chain performance. It proposes different mechanisms to explain how intra- and inter-organizational ICT interact with supply chain integration, and contribute to supply chain performance. The main research question is: What are the distinctive roles of inter-organizational ICT and intra-organizational ICT in improving supply chain performance? Design/methodology/approach – The paper builds on original survey data of 320 Chinese manufacturing firms gathered in China. Findings – The paper shows that inter-organizational ICT has a positive direct relationship with supply chain performance and this relationship is mediated by supply chain integration. Intra-organizational ICT has no direct relationship with supply chain performance. However, intra-organizational ICT moderates the effect of the supply chain integration on supply chain performance. Research limitations/implications – The paper argues that more research into the specific roles and interaction of ICT with business processes is needed in order to better understand its role in improving supply chain performance. Practical implications – For managers the findings show that inter- and intra-organizational ICT play a different role in the improvement of supply chain performance: the first leading to more supply chain integration, which in turn improves performance, while the second needs additional investment in integrative practices to help improve supply chain performance. Originality/value – This paper adds to the debate on the role of ICT in improving supply chain performance and shows that a detailed investigation into underlying mechanisms, and the interaction of ICT with other business processes is valuable.