The Moderating Role of Market, Firm and Supply Chain Factors on the Relationship between Information Technology Practices and Supply Chain Agility

Abstract

In complex business environment, most firms are facing pressures to respond proactively to the environmental factors rapidly and be innovative and effective in order to survive. Therefore, organizations are required to be agile, and have the right information at the right time to make better decisions. In this paper, we examine the linkage between information technology practices (ITP) and supply chain agility (SCA). This study also analyzes the moderating role of market, firm and supply chain factors on the relationship between ITP and SCA. The data collection instrument used was a questionnaire which was administrated to a total sample of 500 respondents from food and beverages industry in peninsular Malaysia. The number of questionnaire collected was only 130 (26%) and the number of usable questionnaire was 100 (20%). The analyses involved statistical methods such as reliability and validity tests, correlation analysis and multiple regressions. The result suggested that ITP have positive impact on SCA. These findings suggest that firm should consider ITP that can improve SCA.