Collaboration: the key to gain value from IT in supply chain

Abstract

Purpose The purpose of this paper is to investigate the role of electronic collaboration (e-collaboration) including information sharing, resource sharing and joint knowledge creation in value creation within pharmaceutical supply chain (SC) and achieving competitive priorities for pharmaceutical companies in Jordan. Design/methodology/approach A descriptive analytical methodology was used through a comprehensive review of published and unpublished work from secondary sources of information in the areas of specific interest: e-collaboration and competitive priorities. The study was conducted at Jordan Food and Drug Administration (JFDA) (of which many pharmaceutical companies are linked electronically through JFDA workflow system). Data were collected (using paper questionnaire) from 90 electronically collaborating pharmaceutical companies and 81 complete responses were received, forming a 90 percent response rate. The analysis of collected data was performed using partial least square structure equation modeling. Findings The results of the analysis indicated that e-collaboration dimensions, information sharing and resource sharing, have a positive impact on competitive priorities, while joint knowledge creation was not significantly related to them. The results suggest that value creation in SC electronic systems is contingent on mutual resource synergy and joint collaboration among trading partners. Research limitations/implications The sample size for this study does not include all pharmaceutical companies in Jordan, as this electronic linkage within the pharmaceutical companies is at its early stage. Moreover, competitive priorities examined in this research are limited to a single industry context. Practical implications This study offers a new insight into information technologies (IT)/business values that can be beneficial to IT and SC managers. By proposing the association between e-collaboration activities and competitive priorities, IT and SC managers are provided with a useful tool to link IT with collaborative activities that lead to value creation. To the best of the authors’ knowledge, this research is one of the early studies about e-collaboration in pharmaceutical SC and competitive priorities in Jordan. As such, managers of manufacturing companies can use the outcome of this study to establish more collaborative partnerships within their SCs. This research contributes to encouraging pharmaceutical firms to focus on their export and marketing capabilities regionally and abroad which would establish a globally competitive pharmaceutical technology industry in Jordan. Social implications It reveals that the adoption of IT alone to manage SC relationships is not sufficient to generate value. Both information- and resource-sharing activities are the core to do so .The results suggest that value creation in SC electronic systems is contingent on mutual resource synergy and joint collaboration among trading partners. The results of the analysis indicated that the dimension of e-collaboration, joint knowledge creation, was not significantly related to competitive priorities. Originality/value This study offers a contextual contribution. To the best of the authors’ knowledge, this research is one of the early studies about e-collaboration in pharmaceutical SC and competitive priorities in Jordan.