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The impact of information integration on financial performance: A knowledge-based view

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  • Gu, Qiannong
  • Jitpaipoon, Thawatchai
  • Yang, Jie

Abstract

It has been reported that integrated internal and external information systems among supply chain partners can strengthen their relationship and improve their operational performance. However, the manufacturers may be more interested to know how and how much such information integrations will affect their financial performance. This study surveys 220 demand-driven manufacturers who adopted mass customization strategy to explore the joint effects of internal and external information integration on their financial performance. The data collected are analyzed by using structural equation modeling method. The findings suggest that strengthened relationship with suppliers will only improve suppliers' operational performance which will positively influence manufacturers' operational performance directly and financial performance indirectly. This study provides theoretical and empirical supports to explore the effects of supplier integration on a demand-driven manufacturer's financial performance from a knowledge-based view.

Suggested Citation

  • Gu, Qiannong & Jitpaipoon, Thawatchai & Yang, Jie, 2017. "The impact of information integration on financial performance: A knowledge-based view," International Journal of Production Economics, Elsevier, vol. 191(C), pages 221-232.
    • Handle: RePEc:eee:proeco:v:191:y:2017:i:c:p:221-232
    DOI: 10.1016/j.ijpe.2017.06.005
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    3. I Ketut Setia Sapta & I Nengah Sudja & I Nengah Landra & Ni Wayan Rustiarini, 2021. "Sustainability Performance of Organization: Mediating Role of Knowledge Management," Economies, MDPI, vol. 9(3), pages 1-16, June.
    4. Hill, Craig A. & Zhang, G. Peter & Miller, Keith E., 2018. "Collaborative planning, forecasting, and replenishment & firm performance: An empirical evaluation," International Journal of Production Economics, Elsevier, vol. 196(C), pages 12-23.
    5. Tomasz Lis & Paula Bajdor & Katarzyna Grondys & Aleksandra Ptak, 2020. "The Role of Information Relations in Network Organizations," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 1), pages 516-529.
    6. PRATAP SINGH Awadhesh, 2020. "Does Better Management Of Financial Obligation Promote Productivity?," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 15(1), pages 212-222, April.
    7. Li, Siyu & Zhao, Xiande & Huo, Baofeng, 2018. "Supply chain coordination and innovativeness: A social contagion and learning perspective," International Journal of Production Economics, Elsevier, vol. 205(C), pages 47-61.
    8. Awe, Olajumoke A. & Woodside, Arch G. & Nerur, Sridhar & Prater, Edmund, 2020. "Capturing heterogeneities in orchestrating resources for accurately forecasting high (separately low) project management performance," International Journal of Production Economics, Elsevier, vol. 224(C).

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