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Customer integration, information quality and operational performance: A social capital view

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  • Roberto Chavez

    () (Facultad de Economía y Empresa, Universidad Diego Portales)

Abstract

Much supply chain integration literature tends to be biased towards its positive impact on operational performance. However, inconclusive results demand investigation of the mechanisms through which supply chain integration can lead to superior operational performance. We propose information quality as such mechanism. The purpose of this study is to identify empirically the mediating role of information quality on the relationship between customer integration and operational performance, and the direct relationship between customer integration and operational performance. The study is based on a questionnaire sent to 228 manufacturing companies in the Republic of Ireland, and the relationships between the constructs are analysed through regression analysis. The results indicate that information quality partially mediates the relationship between customer integration and quality, delivery and flexibility. Further, information quality was found to fully mediate the relationship between customer integration and cost. For practitioners, when the objective is to improve quality, delivery and flexibility, manager should be aware that information quality alone might not be very effective. Instead, information quality should be complemented by customer integration efforts. When the objective is to improve cost, managers can enjoy cost advantage via their capability to obtain and exchange information quality.

Suggested Citation

  • Roberto Chavez, 2014. "Customer integration, information quality and operational performance: A social capital view," Working Papers 57, Facultad de Economía y Empresa, Universidad Diego Portales.
  • Handle: RePEc:ptl:wpaper:57
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    References listed on IDEAS

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    1. van der Vaart, Taco & van Donk, Dirk Pieter, 2008. "A critical review of survey-based research in supply chain integration," International Journal of Production Economics, Elsevier, vol. 111(1), pages 42-55, January.
    2. Susan Cohen Kulp & Hau L. Lee & Elie Ofek, 2004. "Manufacturer Benefits from Information Integration with Retail Customers," Management Science, INFORMS, vol. 50(4), pages 431-444, April.
    3. Haim Mendelson, 2000. "Organizational Architecture and Success in the Information Technology Industry," Management Science, INFORMS, vol. 46(4), pages 513-529, April.
    4. Li, Suhong & Ragu-Nathan, Bhanu & Ragu-Nathan, T.S. & Subba Rao, S., 2006. "The impact of supply chain management practices on competitive advantage and organizational performance," Omega, Elsevier, vol. 34(2), pages 107-124, April.
    5. Feldmann, Martin & Müller, Stephanie, 2003. "An incentive scheme for true information providing in Supply Chains," Omega, Elsevier, vol. 31(2), pages 63-73, April.
    6. repec:sae:niesru:v:160:y::i:1:p:76-86 is not listed on IDEAS
    7. Bailey, Kate & Francis, Mark, 2008. "Managing information flows for improved value chain performance," International Journal of Production Economics, Elsevier, vol. 111(1), pages 2-12, January.
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