It is well touted that embedding information technology (IT) capabilities in supply chain processes would allow firms to derive competitive advantage. Yet the outcomes of such embeddedness vary greatly across companies. Investigating how a firm configures appropriate IT capabilities with supply chain integration (SCI) to achieve superior performance is of significance. Drawing upon the dynamic capabilities theory, we examine how SCI and IT capabilities jointly affect firm performance. We test the hypotheses of interest with data collected from 252 firms in China. The results of hierarchical regression analysis reveal that the interactive effects of SCI and IT capabilities on firm performance vary across different combinations of dimensions of SCI (i.e., information sharing and collaborative planning) and IT capabilities(i.e., IT infrastructure flexibility, IT assimilation capability, and top management’s IT knowledge). In addition, the dimensions of SCI and IT capabilities have differential effects on firm performance. Theoretical contributions and managerial implications of the current research are discussed.
Wei, Shaobo; Liu, Hefu; Ke, Weiling; Wei, Kwok-Kee; and Hua, Zhongsheng, "The Interaction Effects between Supply Chain Integration and IT Capabilities on Firm Performance" (2013). PACIS 2013 Proceedings. 230.