Identifying the pivotal role of participation strategies and information technology application for supply chain excellence

Abstract

PurposeTo propose a conceptual structural equation model to demonstrate the direct and indirect impact of supply chain participation strategy (SCPS), information technology application (ITA), manufacturing participation strategy (MPS) on customer satisfaction (CS) and organizational performance (OP) from a strategic perspective.Design/methodology/approachAn empirical study is conducted through surveys of 109 senior managers from the top 800 manufacturing firms in Taiwan and the data collected are used to test the relationships expressed in the proposed structural equation model.FindingsMPS planning plays a pivotal role in achieving OP in implementing the supply chain system. This demonstrates the strategic importance of integrating manufacturing (operations) with suppliers and customers in a supply chain system.Research limitations/implicationsThe current data were collected in Taiwan, and the distribution of the scale of the firms surveyed may be quite different from that in other countries. But it can be useful for managers' reference, especially for those whose firms are located in other countries where the circumstances are similar to those in Taiwan.Practical implicationsThis application of conceptual structural equation model is a very useful source of information and a notice for managers to achieve greater success in implementing the supply chain systems.Originality/valueThis paper provides a useful conceptual structural equation model and points out a critical pivotal variable for managers to implement SCM more effectively to enhance the competitive advantage.