Cloud computing, Web 2.0, and operational performance

Abstract

Purpose – The purpose of this paper is to analyze the effects of two technologies, cloud computing and Web 2.0, on a firm’s operational performance, examining the relationship between these two technologies and operational performance, and the mediating role played by supply chain integration. Design/methodology/approach – A random sample of 394 companies taken from the DUNS 50,000 database in Spain is used to test the paper’s hypotheses. The data were gathered by telephone survey using the CATI computerized system to manage interviewees’ answers, obtaining a 19.36 percent response rate. Factorial analyses and structural equation modeling were used to test the hypotheses. Findings – The results suggest that cloud computing requires the mediating support of supply chain integration. However, there is no concluding evidence that Web 2.0 has a positive effect on either supply chain integration or operational performance. A positive, significant relationship was found between supply chain integration and operational performance in all the models used. Research limitations/implications – Further research and longitudinal analyses should be carried out in a range of industrial and geographical settings to confirm the findings of this study. Further analyses could also extend the scope and generalizability of results by analyzing the assimilation of supply chain integration-related inter-organizational information systems, such as the effect of ERP systems on performance. Another future direction for research is a study of the impact of the joint assimilation of internal and external integration practices on operational performance. Practical implications – Managers should be aware of the key role that trust plays in the information-sharing process in conjunction with supply chain management. Trust and information-sharing are two inextricably linked elements that enable greater supply chain integration to translate into better operational performance. This paper can also make managers more aware of the powerful tools that exist in the cloud computing universe and those that come under the umbrella of Web 2.0. Companies can use the findings of this paper to create new applications to facilitate supply chain integration. Some examples are also given of how cloud applications can be applied to better integrate the supply chain and, ultimately, to improve overall operational performance. Originality/value – This is one of the first attempts to disentangle the effects exerted by cloud computing on company performance through the mediating role of a higher supply chain integration. The value of this study relies in that academics and practitioners may have a supporting evidence on the role played by a new, disruptive technology such us cloud computing in, internal, operationally linked structures such as supply chain integration and how this combination transforms into better operational outcomes.