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The relationships between information management, process management and operational performance: Internal and external contexts

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  • Prajogo, Daniel
  • Toy, Jordan
  • Bhattacharya, Ananya
  • Oke, Adegoke
  • Cheng, T.C.E.

Abstract

The role of information in supporting processes in firms' operations has become increasingly important. In today's competitive market, information management has become a “prerequisite” for process management. This study examines the role of information management as the driver of process management and its impact on operational performance. Specifically, we distinguish the contextual factors of the variables used in this study in terms of internal and external aspects that reflect intra-firm and inter-firm boundaries. Using a data set drawn from 202 manufacturing firms in Australia, we find that both internal information management and external information management have positive relationships with both internal process management and external process management. Internal process management has positive effects on both internal and external operational performance, but external process management only has a positive effect on external operational performance. Finally, both internal and external operational performance have positive effects on business performance. We conclude by discussing the implications and contributions of the findings.

Suggested Citation

  • Prajogo, Daniel & Toy, Jordan & Bhattacharya, Ananya & Oke, Adegoke & Cheng, T.C.E., 2018. "The relationships between information management, process management and operational performance: Internal and external contexts," International Journal of Production Economics, Elsevier, vol. 199(C), pages 95-103.
    • Handle: RePEc:eee:proeco:v:199:y:2018:i:c:p:95-103
    DOI: 10.1016/j.ijpe.2018.02.019
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    2. Jing Li & Chien-Wen Chen & Chi-Hui Wu & Hsing-Chun Hung & Ching-Torng Lin, 2020. "How do Partners Benefit from IT Use in Supply-Chain Management: An Empirical Study of Taiwan’s Bicycle Industry," Sustainability, MDPI, vol. 12(7), pages 1-24, April.
    3. Xiaoyan Zhang & Rita Yi Man Li & Zhizhong Sun & Xin Li & Sarminah Samad & Ubaldo Comite & Liviu Marian Matac, 2022. "Supply Chain Integration and Its Impact on Operating Performance: Evidence from Chinese Online Companies," Sustainability, MDPI, vol. 14(21), pages 1-16, November.
    4. Mohammad Iranmanesh & Kavigtha Mohan Kumar & Behzad Foroughi & Reza Kian Mavi & Ng Hui Min, 2021. "The impacts of organizational structure on operational performance through innovation capability: innovative culture as moderator," Review of Managerial Science, Springer, vol. 15(7), pages 1885-1911, October.
    5. Kirti Nayal & Rakesh D. Raut & Vinay Surendra Yadav & Pragati Priyadarshinee & Balkrishna E. Narkhede, 2022. "The impact of sustainable development strategy on sustainable supply chain firm performance in the digital transformation era," Business Strategy and the Environment, Wiley Blackwell, vol. 31(3), pages 845-859, March.
    6. Tyrone T. Lin & Hui-Tzu Yen, 2020. "The Criteria of Optimal Training Cost Allocation for Sustainable Value in Aesthetic Medicine Industry," JRFM, MDPI, vol. 13(7), pages 1-18, July.
    7. Evans, Olaniyi, 2018. "Improved Financial Performance Without Improved Operational Efficiency: The Case of Nigerian Firms," MPRA Paper 118202, University Library of Munich, Germany.
    8. Chapran Serhii, 2018. "Development of dynamic model of forming investment value of resources in information systems of integrated service networks," Technology audit and production reserves, 2(40) 2018, Socionet;Technology audit and production reserves, vol. 2(4(40)), pages 48-52.
    9. Andreea Barbu & Gheorghe Militaru & Dana Corina Deselnicu & Ştefan-Alexandru Catană, 2021. "Key Success Factors That Enable IT Service Providers to Achieve Organizational Performance: Evidence from Romania," Sustainability, MDPI, vol. 13(19), pages 1-20, October.
    10. Hafiz Wasim Akram & Samreen Akhtar & Alam Ahmad & Imran Anwar & Mohammad Ali Bait Ali Sulaiman, 2023. "Developing a Conceptual Framework Model for Effective Perishable Food Cold-Supply-Chain Management Based on Structured Literature Review," Sustainability, MDPI, vol. 15(6), pages 1-28, March.
    11. João Thiago de G. A. A. Campos & Renato de Castro Vivas & Adonias Magdiel Silva Ferreira & Francisco Gaudêncio Mendonça Freires, 2020. "Operational Decisions and Sustainability: A Brazilian Case of a Drugs Distribution Center," Sustainability, MDPI, vol. 12(21), pages 1-17, October.
    12. Huiming Liu & Su Wu & Chongwen Zhong & Ying Liu, 2020. "The Sustainable Effect of Operational Performance on Financial Benefits: Evidence from Chinese Quality Awards Winners," Sustainability, MDPI, vol. 12(5), pages 1-23, March.
    13. Tortorella, Guilherme Luz & Cawley Vergara, Alejandro Mac & Garza-Reyes, Jose Arturo & Sawhney, Rapinder, 2020. "Organizational learning paths based upon industry 4.0 adoption: An empirical study with Brazilian manufacturers," International Journal of Production Economics, Elsevier, vol. 219(C), pages 284-294.
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