Effect of Inter-Organizational Systems Use on Supply Chain Capabilities and Performance

Abstract

Inter-Organizational Systems (IOS), which are information systems that extend beyond organizational borders, have seen growing use in linking companies to their supply chain partners. This paper empirically explores the relationship between IOS use, Supply Chain Capabilities, and Supply Chain Performance. The research model proposes that IOS use directly enhances Supply Chain Performance, and indirectly enhances Supply Chain Performance through Supply Chain Capabilities. To test the model, a survey of 200 firms operating in Ghana that use IOS was conducted. Analysis of the model was conducted using Partial Least Squares Structural Equation Modeling techniques. The results of the study confirmed that IOS use positively impacted Supply Chain Capabilities and Supply Chain Performance. Supply Chain Capabilities also positively impacted Supply Chain Performance. Additionally, Supply Chain Capabilities was found to partially mediate the effect of IOS use on Supply Chain Performance. Implications of the study for research and practice are discussed.