How do Information Technology and Integrative Planning drive performance in today's supply chains?

Abstract

Prior studies suggest that integrating information technology and planning plays an important role in operational performance. But how do Information Technology and Integrative Planning (ITIP) drive performance in today's supply chains? How do these capabilities interact with each other? In order to fill this research gap, this study applies Transaction Cost Theory (TCT) and Resource-Based View (RBV) to investigate integration resources within the supply chain. The paper demonstrates with a sample of 124 supply chain experts and structural equation modelling that internal communication and connectivity do not have a direct impact on operational performance. However, these resources are antecedents of performance-related integration. In contrast, inter-company integration in ITIP are resources with significant influence on operational performance. These findings encourage supply chain managers to focus attention on antecedents and performance drivers in order to realise the advantages of integrated information technology and planning in the supply chain.