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Achieving supply chain agility through IT integration and flexibility

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  • Swafford, Patricia M.
  • Ghosh, Soumen
  • Murthy, Nagesh
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    Abstract

    Being responsive is an increasingly important skill for firms in today's global economy; thus firms must be agile. Naturally, it follows that an organization's agility depends on its supply chain being agile. However, achieving supply chain agility is a function of other abilities within the organization, specifically supply chain flexibility and information technology (IT) integration. Using empirical data, we find a domino effect among IT integration, supply chain flexibility, supply chain agility, and competitive business performance. Results from this study indicate that IT integration enables a firm to tap its supply chain flexibility which in turn results in higher supply chain agility and ultimately higher competitive business performance. While these results indicate that firms should invest first in IT for integrating information before investing in flexible processes, additional research is needed.

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    Bibliographic Info

    Article provided by Elsevier in its journal International Journal of Production Economics.

    Volume (Year): 116 (2008)
    Issue (Month): 2 (December)
    Pages: 288-297

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    Handle: RePEc:eee:proeco:v:116:y:2008:i:2:p:288-297

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    Web page: http://www.elsevier.com/locate/ijpe

    Related research

    Keywords: Flexibility IT integration Supply chain agility Empirical methods;

    References

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    Cited by:
    1. Bayraktar, Erkan & Demirbag, Mehmet & Koh, S.C. Lenny & Tatoglu, Ekrem & Zaim, Halil, 2009. "A causal analysis of the impact of information systems and supply chain management practices on operational performance: Evidence from manufacturing SMEs in Turkey," International Journal of Production Economics, Elsevier, vol. 122(1), pages 133-149, November.
    2. Das, Kanchan, 2011. "Integrating effective flexibility measures into a strategic supply chain planning model," European Journal of Operational Research, Elsevier, vol. 211(1), pages 170-183, May.
    3. Wong, Christina W.Y. & Lai, Kee-hung & Ngai, E.W.T., 2009. "The role of supplier operational adaptation on the performance of IT-enabled transport logistics under environmental uncertainty," International Journal of Production Economics, Elsevier, vol. 122(1), pages 47-55, November.
    4. Gosling, J. & Purvis, L. & Naim, M.M., 2010. "Supply chain flexibility as a determinant of supplier selection," International Journal of Production Economics, Elsevier, vol. 128(1), pages 11-21, November.
    5. Chong, Alain Yee-Loong & Ooi, Keng-Boon & Sohal, Amrik, 2009. "The relationship between supply chain factors and adoption of e-Collaboration tools: An empirical examination," International Journal of Production Economics, Elsevier, vol. 122(1), pages 150-160, November.
    6. Kauremaa, Jouni & Kärkkäinen, Mikko & Ala-Risku, Timo, 2009. "Customer initiated interorganizational information systems: The operational impacts and obstacles for small and medium sized suppliers," International Journal of Production Economics, Elsevier, vol. 119(2), pages 228-239, June.
    7. Blome, Constantin & Schoenherr, Tobias & Eckstein, Dominik, 2014. "The impact of knowledge transfer and complexity on supply chain flexibility: A knowledge-based view," International Journal of Production Economics, Elsevier, vol. 147(PB), pages 307-316.
    8. Irani, Zahir & Sharif, Amir M. & Love, Peter E.D., 2009. "Mapping knowledge management and organizational learning in support of organizational memory," International Journal of Production Economics, Elsevier, vol. 122(1), pages 200-215, November.
    9. Gebennini, Elisa & Grassi, Andrea & Rimini, Bianca & Depietri, Eleonora, 2013. "Costs and opportunities of moving picking activities upstream in distribution networks: A case study from the beverage industry," International Journal of Production Economics, Elsevier, vol. 143(2), pages 342-348.
    10. Prajogo, Daniel & Olhager, Jan, 2012. "Supply chain integration and performance: The effects of long-term relationships, information technology and sharing, and logistics integration," International Journal of Production Economics, Elsevier, vol. 135(1), pages 514-522.
    11. Coronado Mondragon, Adrian E. & Lalwani, Chandra S. & Coronado Mondragon, Etienne S. & Coronado Mondragon, Christian E., 2009. "Facilitating multimodal logistics and enabling information systems connectivity through wireless vehicular networks," International Journal of Production Economics, Elsevier, vol. 122(1), pages 229-240, November.
    12. Fahmy Salama, Kamal & Luzzatto, Dino & Sianesi, Andrea & Towill, Denis R., 2009. "The value of auditing supply chains," International Journal of Production Economics, Elsevier, vol. 119(1), pages 34-45, May.
    13. Purvis, Laura & Gosling, Jonathan & Naim, Mohamed M., 2014. "The development of a lean, agile and leagile supply network taxonomy based on differing types of flexibility," International Journal of Production Economics, Elsevier, vol. 151(C), pages 100-111.
    14. Kim, Soo Wook, 2009. "An investigation on the direct and indirect effect of supply chain integration on firm performance," International Journal of Production Economics, Elsevier, vol. 119(2), pages 328-346, June.
    15. Yang, Jie, 2014. "Supply chain agility: Securing performance for Chinese manufacturers," International Journal of Production Economics, Elsevier, vol. 150(C), pages 104-113.
    16. Naim, Mohamed & Aryee, Gilbert & Potter, Andrew, 2010. "Determining a logistics provider's flexibility capability," International Journal of Production Economics, Elsevier, vol. 127(1), pages 39-45, September.
    17. Hill, Alex & Doran, Des & Stratton, Roy, 2012. "How should you stabilise your supply chains?," International Journal of Production Economics, Elsevier, vol. 135(2), pages 870-881.
    18. Yusuf, Yahaya Y. & Gunasekaran, Angappa & Musa, Ahmed & Dauda, Mohammed & El-Berishy, Nagham M. & Cang, Shuang, 2014. "A relational study of supply chain agility, competitiveness and business performance in the oil and gas industry," International Journal of Production Economics, Elsevier, vol. 147(PB), pages 531-543.
    19. Ivanov, Dmitry & Sokolov, Boris, 2013. "Control and system-theoretic identification of the supply chain dynamics domain for planning, analysis and adaptation of performance under uncertainty," European Journal of Operational Research, Elsevier, vol. 224(2), pages 313-323.
    20. Büyüközkan, Gülçin & Feyzioglu, Orhan & Sakir Ersoy, Mehmet, 2009. "Evaluation of 4PL operating models: A decision making approach based on 2-additive Choquet integral," International Journal of Production Economics, Elsevier, vol. 121(1), pages 112-120, September.

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