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The Impact of Information System-Enabled Supply Chain Process Integration on Business Performance: A Resource-Based Analysis

Author

Listed:
  • Morteza Ghobakhloo

    (Department of Mechanical and Manufacturing Engineering, Universiti Putra Malaysia, 43400 UPM, Serdang, Malaysia)

  • Sai Hong Tang

    (Department of Mechanical and Manufacturing Engineering, Universiti Putra Malaysia, 43400 UPM, Serdang, Malaysia)

  • Mohammad Sadegh Sabouri

    (Department of Agriculture, Islamic Azad University, Garmsar Branch, Garmsar, Iran)

  • Norzima Zulkifli

    (Department of Mechanical and Manufacturing Engineering, Universiti Putra Malaysia, 43400 UPM, Serdang, Malaysia)

Abstract

This paper seeks to develop and test a model to examine the relationships between, technical aspects of IS resources (IS alignment, IS resources technical quality, IS advancement), supply chain process integration, and firm performance. A questionnaire-based survey was conducted to collect data from 227 supply chain, logistics, or procurement/purchasing managers of leading manufacturing and retail organizations. Drawing on resources-based view of the firm, and through extending the concept of process integration in supply network, as well as broadening the scope of role of IS resources in relation to process integration and performance gain from the focal firm to the entire supply chain, we found that supply chain process integration is an important multidimensional intermediate organizational capability through which the value of IS resources for supply chain management can be materialized. This capability serves as a catalyst in transforming the value of technical aspects of IS resources into higher performance gain for a firm. Thus, the importance of formation of all dimensions of this capability across supply network should be realized. Moreover, the result suggests that the technical aspects of IS resources need to be jointly developed by supply partners to effectively form supply chain capabilities.

Suggested Citation

  • Morteza Ghobakhloo & Sai Hong Tang & Mohammad Sadegh Sabouri & Norzima Zulkifli, 2014. "The Impact of Information System-Enabled Supply Chain Process Integration on Business Performance: A Resource-Based Analysis," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 13(05), pages 1075-1113.
    • Handle: RePEc:wsi:ijitdm:v:13:y:2014:i:05:n:s0219622014500163
    DOI: 10.1142/S0219622014500163
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    Citations

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    Cited by:

    1. 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.
    2. Johanna Bragge & Henrik Kallio & Tomi Seppälä & Timo Lainema & Pekka Malo, 2017. "Decision-Making in a Real-Time Business Simulation Game: Cultural and Demographic Aspects in Small Group Dynamics," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 16(03), pages 779-815, May.
    3. 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.

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