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Mediation effect of business process and supply chain management capabilities on the impact of IT on firm performance: Evidence from Chinese firms

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  • Peng, Jianping
  • Quan, Jing
  • Zhang, Guoying
  • Dubinsky, Alan J.

Abstract

Motivated by the seeming presence of the productivity paradox in China, this research revisits the question of how information technology (IT) affects firm performance. Leveraging the process-based view of IT, we establish a theoretical framework for the mediation factors for the relationship between IT capabilities and performance. Based on a survey of 127 companies in China, we find that a firm's management capabilities to manage both its internal and external business processes fully mediate the impact of IT on firm performance. The two management capabilities in this study are business-process management capability and supply-chain management capability. Our results show that only the coherent integration of IT capability with firm’s ability to optimize business processes and to improve management of supply chains can enhance firm performance. Firms should avoid the fallacy that IT investments are solely responsible for better firm performance. Based on our findings, we discuss the implications for research and practice.

Suggested Citation

  • Peng, Jianping & Quan, Jing & Zhang, Guoying & Dubinsky, Alan J., 2016. "Mediation effect of business process and supply chain management capabilities on the impact of IT on firm performance: Evidence from Chinese firms," International Journal of Information Management, Elsevier, vol. 36(1), pages 89-96.
    • Handle: RePEc:eee:ininma:v:36:y:2016:i:1:p:89-96
    DOI: 10.1016/j.ijinfomgt.2015.09.006
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    References listed on IDEAS

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    Cited by:

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    2. Hu, Ya-Ping & Chang, I-Chiu & Hsu, Wei-Yen, 2017. "Mediating effects of business process for international trade industry on the relationship between information capital and company performance," International Journal of Information Management, Elsevier, vol. 37(5), pages 473-483.
    3. Chi, Maomao & Wang, Weijun & Lu, Xinyuan & George, Joey F., 2018. "Antecedents and outcomes of collaborative innovation capabilities on the platform collaboration environment," International Journal of Information Management, Elsevier, vol. 43(C), pages 273-283.
    4. Tugba Karaboga & Cemal Zehir & Ekrem Tatoglu & H. Aykut Karaboga & Abderaouf Bouguerra, 2023. "Big data analytics management capability and firm performance: the mediating role of data-driven culture," Review of Managerial Science, Springer, vol. 17(8), pages 2655-2684, November.
    5. Wu, Ing-Long & Chiu, Mai-Lun, 2018. "Examining supply chain collaboration with determinants and performance impact: Social capital, justice, and technology use perspectives," International Journal of Information Management, Elsevier, vol. 39(C), pages 5-19.

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