Effect of information
technology-enabled supply chain
integration on firm’s
operational performance
Odkhishig Ganbold
Faculty of Engineering, Department of Industrial Systems Engineering and
Management, Centre for Next Generation Logistics,
National University of Singapore, Singapore, Singapore
Yoshiki Matsui
Faculty of International Social Sciences, Yokohama National University,
Yokohama, Japan and
Faculty of Liberal Arts, The Open University of Japan, Chiba, Japan, and
Kristian Rotaru
Monash Business School, Monash University, Melbourne, Australia and
BrainPark, School of Psychological Sciences and Monash Biomedical Imaging Facility,
The Turner Institute for Brain and Mental Health, Monash University,
Melbourne, Australia
Abstract
Purpose – Using the assumptions of the resource-based view, relational view and swift, even flow theories and
the overarching principles of supply chain management, the study aims to test the role of information
technology (IT) capability (cross-functional application, supply chain application and data consistency) in
enabling supply chain integration (SCI; internal, customer and supplier integration) and the impact of SCI on
firm’s operational performance in terms of quality, delivery, production cost, inventory level, customer service
and product-mix flexibility.
Design/methodology/approach – The structural equation modeling approach is used to test theoretical
predictions underlying the relationship among dimensions of IT capability, SCI and operational performance
based on data obtained from senior executives of 108 large manufacturing firms listed in the Tokyo Stock
Exchange.
Findings – The results suggest that IT capability has positive impact on SCI, except for data consistency,
which is found to have negative impact on internal integration. The results further indicate that SCI, especially
customer integration, has positive and significant impact on all operational performance indicators.
Practical implications – The findings inform future initiatives associated with the SCI improvement via
specific IT capabilities. When undertaking such initiatives, managers are advised to consider the differential
impact of the following IT capabilities on SCI: cross-functional applications, supply chain applications, and
data consistency capability.
Originality/value – The study makes an empirical contribution to the body of knowledge by demonstrating
the value of the multidimensional representation and analysis of IT capability, SCI, and operational
performance given a differential and even opposed influence by some of the dimensions in specific business
contexts.
Keywords IT capability, Supply chain integration, Operational performance
Paper type Research paper
Effect of IT-
enabled supply
chain
integration
Funding: The authors appreciate the financial support for this research received from the Fuji Xerox
Setsutaro Kobayashi Memorial Fund (Ref. 833) and the Japan Society for the Promotion of Science Grant-
in-Aids for Scientific Research (Nos. 25245050, 26285083, 18H00882, and 19H01520).
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/1741-0398.htm
Received 19 October 2019
Revised 24 February 2020
5 July 2020
Accepted 5 July 2020
Journal of Enterprise Information
Management
© Emerald Publishing Limited
1741-0398
DOI 10.1108/JEIM-10-2019-0332