Examining the Effects of Information Systems Usage and Managerial Commitment on Supply Chain Performance: The Mediating Role of Supply Chain Integration

Abstract

The aim of the study is to investigate the effect of Information Systems Usage on Supply Chain. Information systems involve creating specific environment for the fulfilment of organizational strategy. However, information system affords an organization an enormous benefit that materializes in the long-run. Unfortunately, realization of information system is also accompanied with risk which mostly deters management from taking the initiative hence missing out on the intended benefits of implementing information system usage in organizations. Without overemphasizing the crucial role played by information system in the supply chain performance, this study seeks to focus on investigating the effect of Explorative Information Systems Usage and Exploitative Information Systems Usage on Supply Chain Performance. Even though Information Systems is an increasingly important element of academic research and discussions, there seems to be no consensus in the extant literature on the impact of information systems (IS) usage on the supply chain. Most importantly the study investigates moderating functions of supply chain integration (SCI) and managerial commitment (MC). Survey instruments were collected from manufacturing companies in Ghana. Simple random sampling was used to select 100 companies of which 1,300 respondents were identified, and questionnaires were administered. The study showed that Managerial Commitment, Explorative Information Systems Usage, and Exploitative Information Systems Usage impact significantly and positively on Supply Chain Performance. Additionally, the findings concluded that Supply Chain Integration, specifically operational integration significantly and positively mediates the relationship between the usage of Information Systems and Performance of Supply Chain. In this regard, these results imply that operational integration between partners can help influence the performance of supply chains.