A new model of competition, where competition is among supply chain networks rather than individual firms, is transforming traditional market-based buyer supplier relations to one of competition among cooperative sets. In order to integrate and realize performance gains from participating in cooperative supply networks, the importance of information sharing across the supply chain has been emphasized in different literature streams. In this study, we examine the relational antecedents of this critical aspect of supply chain integration--that is, information flow integration. Our objective is to investigate the relationship between relational orientation of the focal firm, as characterized by (1) long-term orientation of its supply chain relationships. (2) asset specificity, and (3) interaction routines and the information flow integration between a firm and its supply chain partners. A research model was developed and data were collected from 110 supply chain and logistics managers in manufacturing and retail organizations. Our results suggest that tangible and intangible resources invested in supply chain relationships enable the integration of information flows with supply chain partners. Specifically, formal and informal interaction routines that take time and effort to develop enable integration of informational flows across a firm's supply chain. Investments in relation specific assets and long-term orientation in relationships enable the development of these interaction routines.
Best practice exemplars suggest that digital platforms play a critical role in managing supply chain activities and partnerships that generate performance gains for firms. However, there is limited academic investigation on how and why information technology can create performance gains for firms in a supply chain management (SCM) context. Grant's (1996) theoretical notion of higher-order capabilities and a hierarchy of capabilities has been used in recent information systems research by Barua et al. (2004), Sambamurthy et al. (2003), and Mithas et al. (2004) to reframe the conversation from the direct performance impacts of IT resources and investments to how and why IT shapes higher-order process capabilities that create performance gains for firms. We draw on the emerging IT-enabled organizational capabilities perspective to suggest that firms that develop IT infrastructure integration for SCM and leverage it to create a higher-order supply chain integration capability generate significant and sustainable performance gains. A research model is developed to investigate the hierarchy of IT-related capabilities and their impact on firm performance. Data were collected from 110 supply chain and logistics managers in manufacturing and retail organizations. Our results suggest that integrated IT infrastructures enable firms to develop the higher-order capability of supply chain process integration. This capability enables firms to unbundle information flows from physical flows, and to share information with their supply chain partners to create information-based approaches for superior demand planning, for the staging and movement of physical products, and for streamlining voluminous and complex financial work processes. Furthermore, IT-enabled supply chain integration capability results in significant and sustained firm performance gains, especially in operational excellence and revenue growth. Managerial initiatives should be directed at developing an integrated IT infrastructure and leveraging it to create process capabilities for the integration of resource flows between a firm and its supply chain partners.
The adoption rate of computer-aided software engineering (CASE) technology continues to be low among information systems departments (ISDs). Some ISDs have reported significant hurdles in propagating CASE usage, while documenting the advantages of the technology. We construct and empirically test a theoretical model to explain CASE adoption behavior. Factors considered include need pull (environmental instability of the ISD and performance gap of the ISD), technology push (internal experimentation and learning from external information sources), and the adoption context (top-management support for the IS function, CASE championship, training availability, and job/role rotation). A national survey of 2,700 ISDs resulted in 405 usable responses for the data analysis. Our analysis suggests a reasonable fit between the model and the data. The results indicate that the need-pull factors do not directly promote CASE adoption behavior. Performance deficit promotes CASE championship behavior while negatively affecting other elements of the adoption context. The instability of ISDs, where the very existence of the ISD may be in question, negatively affects all elements of the adoption context. Learning about CASE from external information sources directly promotes CASE adoption. Both technology push factors positively affect all four elements of the adoption context. Of the contextual elements, CASE training availability, CASE championship, and job/role rotation positively affect CASE adoption behavior. Top management support does not affect CASE adoption behavior, which suggests that such support may be more critical for postadoption stages of the diffusion process.