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The impact of IT on supply chain agility and firm performance: An empirical investigation

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  • DeGroote, Sharon E.
  • Marx, Thomas G.

Abstract

This study investigates the impact of information technology (IT) on supply chain agility measured by the ability to sense and respond to market changes, and the impact supply chain agility has on firm performance. Data were collected from supply chain executives at 193 U.S. manufacturing firms. The results suggest that IT improves the supply chain's ability to sense market changes by improving the adequacy, accuracy, accessibility, and timeliness of the information flows among members of the supply chain. IT also increases the supply chain's ability to respond to market changes by reducing the cost, and improving the quality and timeliness of developing and executing coordinated plans to respond to market changes throughout the supply chain. Importantly, the results indicate that enhanced supply chain agility has positive impacts on the firm's sales, market share, profitability, speed to market, and customer satisfaction.

Suggested Citation

  • DeGroote, Sharon E. & Marx, Thomas G., 2013. "The impact of IT on supply chain agility and firm performance: An empirical investigation," International Journal of Information Management, Elsevier, vol. 33(6), pages 909-916.
    • Handle: RePEc:eee:ininma:v:33:y:2013:i:6:p:909-916
    DOI: 10.1016/j.ijinfomgt.2013.09.001
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    2. Ashrafi, Amir & Zare Ravasan, Ahad & Trkman, Peter & Afshari, Samira, 2019. "The role of business analytics capabilities in bolstering firms’ agility and performance," International Journal of Information Management, Elsevier, vol. 47(C), pages 1-15.
    3. Chih-Hung Hsu & Xu He & Ting-Yi Zhang & An-Yuan Chang & Wan-Ling Liu & Zhi-Qiang Lin, 2022. "Enhancing Supply Chain Agility with Industry 4.0 Enablers to Mitigate Ripple Effects Based on Integrated QFD-MCDM: An Empirical Study of New Energy Materials Manufacturers," Mathematics, MDPI, vol. 10(10), pages 1-35, May.
    4. Diéssica Oliveira-Dias & José Moyano-Fuentes & Juan Manuel Maqueira-Marín, 2022. "Understanding the relationships between information technology and lean and agile supply chain strategies: a systematic literature review," Annals of Operations Research, Springer, vol. 312(2), pages 973-1005, May.
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    6. Ciampi, Francesco & Faraoni, Monica & Ballerini, Jacopo & Meli, Francesco, 2022. "The co-evolutionary relationship between digitalization and organizational agility: Ongoing debates, theoretical developments and future research perspectives," Technological Forecasting and Social Change, Elsevier, vol. 176(C).

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