Integrated information technology and firm performanceMediating and moderating effects in supply chain management context

Abstract

This thesis extends the developing body of literature on supply chain integration, which is the degree to which a firm strategically cooperates with its supply chain partners and collaboratively manages intra- and inter-organizational processes, to achieve effective and efficient flows of products and services, information, money and decisions, to provide maximum value to supply chain parties. Conceptualizing from various theories (Information Processing Theory, Resource Based View, Organizational Learning Theory, and Commitment-Trust Theory of Relationship Marketing), we develop and examine hypotheses proposing positive relationships between integrated information technology, supplier integration, customer integration, internal integration, and financial performance. Also, we investigate the complementary roles of information technology department size and top management support in the above mentioned nomological network. Conceptual models were designed and hypotheses were tested with Confirmatory Factor Analysis and Structural Equation Modeling analysis. Our findings from a survey of 205 firms in Egypt indicate that integrated information technology, supplier integration, customer integration, and internal integration can improve financial performance. In addition, integrated information technology has a direct positive effect on supply chain integration dimensions (supplier integration, customer integration, and internal integration). Also, it is confirmed that information technology department size and top management support are significantly related to integrated information technology. Finally, our analysis examined the direct and moderating effect of trust, relationship commitment, and hierarchical organizational culture on the supply chain integration dimensions, and on the relationship between integrated information technology and supply chain integration dimensions. This finding suggests that firms should focus on the important roles of integrated information technology to improve financial performance through supply chain integration. This study opens new research avenues for integrated information technology and supply chain integration, and suggests directions for future research and practice by exploring under what conditions integrated information technology and supply chain integration can help to improve financial performance.