MODERATING ROLES OF INFORMATION TECHNOLOGY LINK AND INFORMATION SHARING IN DRIVING SUPPLY CHAIN PERFORMANCE THROUGH SUPPLIER DEVELOPMENT AND KNOWLEDGE ABSORPTION: EMPIRICAL EVIDENCE FROM MANUFACTURING FIRMS ACROSS COUNTRIES

Abstract

Along with information technology adoption, supply chain coordination through information sharing activities has become essential to achieve supply chain effectiveness and resilience. This paper presents the results of an empirical study investigating the moderating roles of information technology link and information sharing on the relationship between supplier development, knowledge absorption from customers, and supply chain performance. Statistical techniques such as measurement test, correlation analysis, and regression analysis are applied to analyze the data collected during the Round 4 of the High Performance Manufacturing (HPM) Project. The data sample includes 304 manufacturing plants operating in 13 countries including Brazil, China, Finland, German, Italy, Israel, Japan, Korea, Spain, Sweden, Taiwan, United Kingdom, and Vietnam. Analytical results indicate that a supply chain would perform better when focal firms invest their effort in supplier development and knowledge absorption activities and develop a strong link with suppliers and customers through information technology systems. Information technology links with suppliers and customers have significant moderating roles in strengthening the relationship between supplier development, knowledge absorption from customers, and supply chain performance. Moreover, information sharing exchange with suppliers were found to make the association between supplier development and supply chain performance becomes more pronounced. The empirical results contribute to the existing literature of information sharing and supply chain coordination in supply chain management. In addition, this study provides several practical implications, such that information technology linkage and information sharing activities should be considered as the platforms for organizations to interact with different supply chain partners for achieving high supply chain performance.