Leveraging the impact of supply chain integration through information technology

Abstract

Purpose Companies increasingly exchange information to work more closely with supply chain partners. Although information exchange is a critical element for up- and downstream partnerships, the purpose of this paper is to indicate that it is not a guarantee for improved performance and should be combined with other integration tactics to fully capture its benefits. Design/methodology/approach Using a global sample in the industrial sector, a moderated mediation framework for both upstream and downstream integration, which links integration tactics to operational performance, was empirically tested. Findings This research shows that operational integration is indispensable to capture the benefits of information exchange. In addition, it points out that the impact of the use of information technology (IT) is stronger for upstream integration. Practical implications While the data show that the use of IT significantly improves the delivery performance in the supply chain, it also signals to managers how and when to invest in supply chain integration tactics. Originality/value This paper contributes to a better understanding of the supply chain integration-performance link, by clarifying some of the inconsistencies in previous literature and by simultaneously analyzing upstream and downstream implications.