The effect of supply chain information management and information system infrastructure

Abstract

Purpose The purpose of this paper is to explain the relationship between supply chain information management, supply chain information system (IS) infrastructure, supply chain integration and the manufacturing performance of firms in manufacturing industry in Malaysia. Therefore, the study addresses a gap in research concerning the effect of supply chain information practices toward manufacturing performance. Design/methodology/approach The research design for this study employed the quantitative method using survey questionnaires that have been developed based on a thorough and detailed analysis of the relevant literature. Based on a sample consist of 248 usable data, mediated multiple regression analysis was used to examine the research model. Findings The findings indicate that supply chain integration fully mediates the relationship between supply chain information management and supply chain information system infrastructure (ISI) toward manufacturing performance. Research limitations/implications This research is limited to a particular sample: i.e. electrical and electronics manufacturing firms in Peninsular Malaysia. Thus, the results need to be generalized to encompass wider samples. Practical implications Organizations interest in making all members in their supply chain to communicate using information network to support managers in better decision making while adopting more enhanced information management and system infrastructure. As a plus, it helps in integrating various internal and external value chain processes across manufacturing firms in the organization’s supply chain network. As result, manufacturing firms could improve their performance in the long run. Originality/value The originality of this study lies in employing a newly developed framework-based existing theoretical argument to examine the effectiveness of supply chain information management and system infrastructure with an improved influence from supply chain integration toward the manufacturing performance.