Enterprise Software

Information Technology in Supply Chains: The Value of IT-Enabled Resources Under Competition

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Executive Summary

In this paper, the authors seek to better understand the value of Information Technology (IT) in supply chain contexts. Grounded in the resource-based theory in conjunction with transaction cost economics, they develop a conceptual model that links three IT-related resources (backend integration, managerial skills, and partner support) to firm performance improvement. The model differs from previous studies by proposing a moderating effect of competition on the resource-performance relationships. Using data of 743 manufacturing firms, the authors' analysis indicates significant contribution of IT to supply chains, which is generated through development of the digitally enabled integration capability and manifested at the process level along the supply chain.

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