PACIS 2019 Proceedings


Nowadays, organizations are facing a very competitive business environment than before. In addition, the aspects of the strategic formulation process for the operations strategy is gradually changing from the competition focused on the collaboration viewpoint. Therefore, the type of competition is shifted to the supply chain level instead of the traditional firm level competition. Therefore, system integration between firms has been regarded as an effective strategy to achieve a firm’s competitive advantages. The purpose of this study is trying to discover the relationship which will stimulate firms to apply system integration between each other for better communication and cooperation with partners in the supply chain. Therefore, the study tries to find out the system integration moderates the relationship between relationship-specific social capital and value co-creation and also tested the relationship between value cocreation to firm performance. Study samples are selected from the firms of central-satellite development system (CSD) in Taiwan because the characteristics of Taiwan’s CSD include the short product life cycle, uncertainty of market demand and delivery on time, etc. The study results appeared system integration moderated the relationship among structural (information sharing), cognitive (shared valued) and value co-creation. Moreover, the value co-creation for firms from upper stream significantly influences supply chain performance for the firm performance of customer’s responses in the downstream of the supply chain. Theoretical contributions and managerial implications are also discussed providing several future research directions and suggestions for firms in the supply chain respectively.