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Supply chain practice and information quality: A supply chain strategy study

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  • Zhou, Honggeng
  • Shou, Yongyi
  • Zhai, Xin
  • Li, Ling
  • Wood, Craig
  • Wu, Xiaobo

Abstract

There is a wide acceptance of the strategic importance of integrating up-to-date information technology with effective supply chain practice. However, little is known about how the alignment between information technology and supply chain practice impacts business performance. This paper investigates two supply chain practices (i.e. sourcing practice and delivery practice) and information quality. Scales measuring sourcing practice, delivery practice, and information quality were developed. Four strategic clusters of companies, using alternative supply chain strategies, are identified. In three of the strategic clusters, the level of supply chain practice is consistent with the level of information quality. The fourth strategic cluster has a high level of information quality but a low level of effective supply chain practices. In this study, the fourth strategic cluster performed consistently worse than the other three strategic clusters. The performance measures consist of sales revenue and profitability. This study shows that firms need to align supply chain practice with the level of their information quality in order to achieve good overall business performance. Implications of our findings and future research opportunities are addressed.

Suggested Citation

  • Zhou, Honggeng & Shou, Yongyi & Zhai, Xin & Li, Ling & Wood, Craig & Wu, Xiaobo, 2014. "Supply chain practice and information quality: A supply chain strategy study," International Journal of Production Economics, Elsevier, vol. 147(PC), pages 624-633.
    • Handle: RePEc:eee:proeco:v:147:y:2014:i:pc:p:624-633
    DOI: 10.1016/j.ijpe.2013.08.025
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    2. Han, Jeong Hugh & Wang, Yingli & Naim, Mohamed, 2017. "Reconceptualization of information technology flexibility for supply chain management: An empirical study," International Journal of Production Economics, Elsevier, vol. 187(C), pages 196-215.
    3. Tan, Kim Hua & Zhan, YuanZhu & Ji, Guojun & Ye, Fei & Chang, Chingter, 2015. "Harvesting big data to enhance supply chain innovation capabilities: An analytic infrastructure based on deduction graph," International Journal of Production Economics, Elsevier, vol. 165(C), pages 223-233.
    4. Kozarević, Safet & Puška, Adis, 2018. "Use of fuzzy logic for measuring practices and performances of supply chain," Operations Research Perspectives, Elsevier, vol. 5(C), pages 150-160.
    5. Rok Lee, 2021. "The Effect of Supply Chain Management Strategy on Operational and Financial Performance," Sustainability, MDPI, vol. 13(9), pages 1-18, May.
    6. 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.
    7. Perez-Franco, R. & Phadnis, S. & Caplice, C. & Sheffi, Y., 2016. "Rethinking supply chain strategy as a conceptual system," International Journal of Production Economics, Elsevier, vol. 182(C), pages 384-396.
    8. Changjoon Lee & Byoung-Chun Ha, 2021. "Interactional Justice, Informational Quality, and Sustainable Supply Chain Management: A Comparison of Domestic and Multinational Pharmaceutical Companies," Sustainability, MDPI, vol. 13(2), pages 1-16, January.
    9. Mahdavi, Mojtaba & Olsen, Tava Lennon, 2017. "Designing Effective Supply Chains in Strategic Alignment with Demand Characteristics and Market Requirements," Foundations and Trends(R) in Technology, Information and Operations Management, now publishers, vol. 10(2), pages 89-208, June.
    10. Araneda-Fuentes, Cristina & Lustosa, Leonardo Junqueira & Minner, Stefan, 2015. "A contract for coordinating capacity decisions in a business-to-business (B2B) supply chain," International Journal of Production Economics, Elsevier, vol. 165(C), pages 158-171.
    11. Shou, Yongyi & Zhao, Xinyu & Dai, Jing & Xu, Dong, 2021. "Matching traceability and supply chain coordination: Achieving operational innovation for superior performance," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 145(C).
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    13. Szilvia Botos & Róbert Szilágyi & János Felföldi & Mihály Tóth, 2020. "Readiness for ICT Based B2C Information Flow – Case Study of the Hungarian Food Sector," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 12(2), June.
    14. Sen, Sandipan & Savitskie, Katrina & Mahto, Raj V. & Kumar, Sampath & Khanine, Dmitry, 2022. "If it ain’t broke, don’t fix it? Indian manufacturing SMEs’ quest for strategic flexibility," Journal of Business Research, Elsevier, vol. 143(C), pages 27-35.
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