IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v12y2020i7p2883-d341402.html
   My bibliography  Save this article

How do Partners Benefit from IT Use in Supply-Chain Management: An Empirical Study of Taiwan’s Bicycle Industry

Author

Listed:
  • Jing Li

    (Program in Management, Dayeh University, Changhua 51591, Taiwan
    College of Music and Movie & TV, Tianjin Normal University, Tianjin 300384, China)

  • Chien-Wen Chen

    (Department of Business Administration, Feng Chia University, Taichung 40724, Taiwan)

  • Chi-Hui Wu

    (Department of Management and Information, National Open University, New Taipei 24701, Taiwan)

  • Hsing-Chun Hung

    (Program in Management, Dayeh University, Changhua 51591, Taiwan)

  • Ching-Torng Lin

    (Department of Information Management, Dayeh University, Changhua 51591, Taiwan)

Abstract

To be sustainable and growing amongst uncertain environments and intensive global competition, supply-chain network leaders have established supply-chain management systems (SCMS) to leverage the resources and knowledge of their partners to achieve greater supply-chain capabilities (SCC) to respond to market changes and complexity. Although several studies have investigated the benefits to network leaders from these systems in various industries, little attention has been paid to the delivery of substantial benefits and advantages to its partners. Based on information technology (IT) applications and SCC literature, this paper proposes a model relating partners use of SCMS to benefits. Data from 168 partners using an SCMS implemented by a leading bicycle supply chain in Taiwan to test the hypotheses that SCC and operational performance has a mediating role linking SCMS use in order to affect a partner’s performance. The results indicate that SCMS implementation has a significant impact on SCC, which in turn create a significant positive effect on operational (sustainable) performance, ultimately leading to improved growth rate and profitability in partners. Another interesting finding of the research is that SCMS cannot directly affect financial performance. In addition, from sustainable performance aspects, it is revealed that IT enables supply chain management (SCM) to achieve environmental value through information sharing (up and down), process integration (vertical and horizontal) and automation (i.e., planning, operation and control). This finding highlights the importance for maximizing benefits and sustainability for the whole supply-chain partners, the IT implementation must be integrated with the sustainable development goals and inserted in the eco-operation supply-chain platform process. The results also contribute to the debate in prior studies by disclosing why so many partners could not find to gain benefit from these IT implementations. Furthermore, this study represents the first attempt to examine how partners benefit from IT use in SCC for traditional industry.

Suggested Citation

  • Jing Li & Chien-Wen Chen & Chi-Hui Wu & Hsing-Chun Hung & Ching-Torng Lin, 2020. "How do Partners Benefit from IT Use in Supply-Chain Management: An Empirical Study of Taiwan’s Bicycle Industry," Sustainability, MDPI, vol. 12(7), pages 1-24, April.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:7:p:2883-:d:341402
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/12/7/2883/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/12/7/2883/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Liao, Shu-Hsien & Kuo, Fang-I, 2014. "The study of relationships between the collaboration for supply chain, supply chain capabilities and firm performance: A case of the Taiwan׳s TFT-LCD industry," International Journal of Production Economics, Elsevier, vol. 156(C), pages 295-304.
    2. Carla Gonçalves Machado & Mats Peter Winroth & Elias Hans Dener Ribeiro da Silva, 2020. "Sustainable manufacturing in Industry 4.0: an emerging research agenda," International Journal of Production Research, Taylor & Francis Journals, vol. 58(5), pages 1462-1484, March.
    3. Geary, S. & Disney, S.M. & Towill, D.R., 2006. "On bullwhip in supply chains--historical review, present practice and expected future impact," International Journal of Production Economics, Elsevier, vol. 101(1), pages 2-18, May.
    4. Liao, Shu-Hsien & Hu, Da-Chian & Ding, Li-Wen, 2017. "Assessing the influence of supply chain collaboration value innovation, supply chain capability and competitive advantage in Taiwan's networking communication industry," International Journal of Production Economics, Elsevier, vol. 191(C), pages 143-153.
    5. Wolfgang Ulaga, 2001. "Customer Value in Business Markets: An Agenda for Inquiry," Post-Print hal-00485122, HAL.
    6. Hau L. Lee & Kut C. So & Christopher S. Tang, 2000. "The Value of Information Sharing in a Two-Level Supply Chain," Management Science, INFORMS, vol. 46(5), pages 626-643, May.
    7. Qrunfleh, Sufian & Tarafdar, Monideepa, 2014. "Supply chain information systems strategy: Impacts on supply chain performance and firm performance," International Journal of Production Economics, Elsevier, vol. 147(PB), pages 340-350.
    8. Prajogo, Daniel & Olhager, Jan, 2012. "Supply chain integration and performance: The effects of long-term relationships, information technology and sharing, and logistics integration," International Journal of Production Economics, Elsevier, vol. 135(1), pages 514-522.
    9. Jafar Rezaei & Roland Ortt & Paul Trott, 2015. "How SMEs can benefit from supply chain partnerships," International Journal of Production Research, Taylor & Francis Journals, vol. 53(5), pages 1527-1543, March.
    10. Koh, S.C. Lenny & Saad, Sameh M., 2006. "Managing uncertainty in ERP-controlled manufacturing environments in SMEs," International Journal of Production Economics, Elsevier, vol. 101(1), pages 109-127, May.
    11. Prajogo, Daniel & Toy, Jordan & Bhattacharya, Ananya & Oke, Adegoke & Cheng, T.C.E., 2018. "The relationships between information management, process management and operational performance: Internal and external contexts," International Journal of Production Economics, Elsevier, vol. 199(C), pages 95-103.
    12. Leonilde Varela & Adriana Araújo & Paulo Ávila & Hélio Castro & Goran Putnik, 2019. "Evaluation of the Relation between Lean Manufacturing, Industry 4.0, and Sustainability," Sustainability, MDPI, vol. 11(5), pages 1-19, March.
    13. Edvard Tijan & Saša Aksentijević & Katarina Ivanić & Mladen Jardas, 2019. "Blockchain Technology Implementation in Logistics," Sustainability, MDPI, vol. 11(4), pages 1-13, February.
    14. Li, Gang & Yang, Hongjiao & Sun, Linyan & Sohal, Amrik S., 2009. "The impact of IT implementation on supply chain integration and performance," International Journal of Production Economics, Elsevier, vol. 120(1), pages 125-138, July.
    15. Humphreys, P. K. & Lai, M. K. & Sculli, D., 2001. "An inter-organizational information system for supply chain management," International Journal of Production Economics, Elsevier, vol. 70(3), pages 245-255, April.
    16. Kim, Soo Wook, 2009. "An investigation on the direct and indirect effect of supply chain integration on firm performance," International Journal of Production Economics, Elsevier, vol. 119(2), pages 328-346, June.
    17. Morita, Michiya & Machuca, Jose A.D. & Pérez Díez de los Ríos, José L., 2018. "Integration of product development capability and supply chain capability: The driver for high performance adaptation," International Journal of Production Economics, Elsevier, vol. 200(C), pages 68-82.
    18. Yu, Wantao & Chavez, Roberto & Jacobs, Mark A. & Feng, Mengying, 2018. "Data-driven supply chain capabilities and performance: A resource-based view," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 114(C), pages 371-385.
    19. Li, Suhong & Ragu-Nathan, Bhanu & Ragu-Nathan, T.S. & Subba Rao, S., 2006. "The impact of supply chain management practices on competitive advantage and organizational performance," Omega, Elsevier, vol. 34(2), pages 107-124, April.
    20. Joon-Seok Kim & Nina Shin, 2019. "The Impact of Blockchain Technology Application on Supply Chain Partnership and Performance," Sustainability, MDPI, vol. 11(21), pages 1-17, November.
    21. Chang, Woojung & Ellinger, Alexander E. & Kim, Kyoungmi (Kate) & Franke, George R., 2016. "Supply chain integration and firm financial performance: A meta-analysis of positional advantage mediation and moderating factors," European Management Journal, Elsevier, vol. 34(3), pages 282-295.
    22. Yu, Wantao & Jacobs, Mark A. & Salisbury, W. David & Enns, Harvey, 2013. "The effects of supply chain integration on customer satisfaction and financial performance: An organizational learning perspective," International Journal of Production Economics, Elsevier, vol. 146(1), pages 346-358.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hee-sung Bae, 2020. "The Relationships between Orientation, Collaboration and Performance for Supply Chain Management of Korean FDI Firms for Sustainable Growth," Sustainability, MDPI, vol. 12(24), pages 1-17, December.
    2. Jun-Der Leu & Larry Jung-Hsing Lee & Yi-Wei Huang & Chia-Chi Huang, 2021. "Sustainable Supply Chains: Evidence from Small and Medium-Sized Manufacturers," Sustainability, MDPI, vol. 13(16), pages 1-22, August.
    3. Zhang Yu & Syed Abdul Rehman Khan & Muhammad Umar, 2022. "Circular economy practices and industry 4.0 technologies: A strategic move of automobile industry," Business Strategy and the Environment, Wiley Blackwell, vol. 31(3), pages 796-809, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Prajogo, Daniel & Olhager, Jan, 2012. "Supply chain integration and performance: The effects of long-term relationships, information technology and sharing, and logistics integration," International Journal of Production Economics, Elsevier, vol. 135(1), pages 514-522.
    2. Hyun Jung Kim, 2017. "Information technology and firm performance: the role of supply chain integration," Operations Management Research, Springer, vol. 10(1), pages 1-9, June.
    3. Abdurrezzak Sener & Mehmet Barut & Ali Dag & Mehmet Bayram Yildirim, 2021. "Impact of commitment, information sharing, and information usage on supplier performance: a Bayesian belief network approach," Annals of Operations Research, Springer, vol. 303(1), pages 125-158, August.
    4. Acar, Yavuz & Atadeniz, Sukran Nilvana, 2015. "Comparison of integrated and local planning approaches for the supply network of a globally-dispersed enterprise," International Journal of Production Economics, Elsevier, vol. 167(C), pages 204-219.
    5. Yang, Qian & Zhao, Xiande, 2016. "Are logistics outsourcing partners more integrated in a more volatile environment?," International Journal of Production Economics, Elsevier, vol. 171(P2), pages 211-220.
    6. Xiaoyan Zhang & Rita Yi Man Li & Zhizhong Sun & Xin Li & Sarminah Samad & Ubaldo Comite & Liviu Marian Matac, 2022. "Supply Chain Integration and Its Impact on Operating Performance: Evidence from Chinese Online Companies," Sustainability, MDPI, vol. 14(21), pages 1-16, November.
    7. Hong, Jiangtao & Liao, Yi & Zhang, Yibin & Yu, Zhefu, 2019. "The effect of supply chain quality management practices and capabilities on operational and innovation performance: Evidence from Chinese manufacturers," International Journal of Production Economics, Elsevier, vol. 212(C), pages 227-235.
    8. Sener, Abdurrezzak & Barut, Mehmet & Oztekin, Asil & Avcilar, Mutlu Yuksel & Yildirim, Mehmet Bayram, 2019. "The role of information usage in a retail supply chain: A causal data mining and analytical modeling approach," Journal of Business Research, Elsevier, vol. 99(C), pages 87-104.
    9. Chahal, Hardeep & Gupta, Mahesh & Bhan, Namrita & Cheng, T.C.E., 2020. "Operations management research grounded in the resource-based view: A meta-analysis," International Journal of Production Economics, Elsevier, vol. 230(C).
    10. Justice Odei Som & Hod Anyigba, 2022. "Examining the Effects of Information Systems Usage and Managerial Commitment on Supply Chain Performance: The Mediating Role of Supply Chain Integration," SAGE Open, , vol. 12(2), pages 21582440221, April.
    11. Radhakrishnan, Abirami & Davis, John Stephen & Sridharan, Sri V. & Moore, De Wayne & David, Dessa, 2018. "The impact of inter-organizational information systems-enabled external integration on capabilities of buyer–supplier dyads," European Management Journal, Elsevier, vol. 36(4), pages 558-572.
    12. Lii, Peirchyi & Kuo, Fang-I, 2016. "Innovation-oriented supply chain integration for combined competitiveness and firm performance," International Journal of Production Economics, Elsevier, vol. 174(C), pages 142-155.
    13. Prajogo, Daniel & Toy, Jordan & Bhattacharya, Ananya & Oke, Adegoke & Cheng, T.C.E., 2018. "The relationships between information management, process management and operational performance: Internal and external contexts," International Journal of Production Economics, Elsevier, vol. 199(C), pages 95-103.
    14. Franck Brulhart & Uche Okongwu & Btissam Moncef, 2015. "Causal linkages between supply chain management practices and performance: a balanced scorecard strategy map perspective," Post-Print halshs-01239670, HAL.
    15. Jacobs, Mark A. & Yu, Wantao & Chavez, Roberto, 2016. "The effect of internal communication and employee satisfaction on supply chain integration," International Journal of Production Economics, Elsevier, vol. 171(P1), pages 60-70.
    16. Muhammad Irfan & Mingzheng Wang & Naeem Akhtar, 2019. "Impact of IT capabilities on supply chain capabilities and organizational agility: a dynamic capability view," Operations Management Research, Springer, vol. 12(3), pages 113-128, December.
    17. Li, Ying & Dai, Jing & Cui, Li, 2020. "The impact of digital technologies on economic and environmental performance in the context of industry 4.0: A moderated mediation model," International Journal of Production Economics, Elsevier, vol. 229(C).
    18. Mohammed Belal Uddin & Bilkis Akhter, 2022. "Investigating the relationship between top management commitment, supply chain collaboration, and sustainable firm performance in the agro-processing supply chain," Operations Management Research, Springer, vol. 15(3), pages 1399-1417, December.
    19. Li, Siyu & Huo, Baofeng & Han, Zhaojun, 2022. "A literature review towards theories and conceptual models of empirical studies on supply chain integration and performance," International Journal of Production Economics, Elsevier, vol. 250(C).
    20. Liao, Shu-Hsien & Kuo, Fang-I, 2014. "The study of relationships between the collaboration for supply chain, supply chain capabilities and firm performance: A case of the Taiwan׳s TFT-LCD industry," International Journal of Production Economics, Elsevier, vol. 156(C), pages 295-304.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:12:y:2020:i:7:p:2883-:d:341402. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.