Impact of ICT Capability on Real Time Enterprise Capability and Supply Chain Performance

Abstract

Many companies make considerable efforts in implementing supply chain management systems to increase their competitiveness. In particular, there are significant investments in their ICT (Information and Communication Technology) and supply chain. However, considerable diversity exists in how well firms have been able to assimilate ICT and leverage the business value of it. In addition, studies on supply chains, particularly Real Time Enterprise (RTE) competence, which is cited for rapid information sharing and dynamic capabilities for each role in the supply chain, are insufficient. The purpose of this paper is to explore and evaluate effect of ICT utilization capabilities, including ‘ICT internal cooperative capabilities’ and ‘ICT operational flexibility capabilities’, on RTE capabilities (flexibility, visibility and prediction) and supply chain performance. To validate the research model proposed in the study, survey was conducted on companies using ICT along the supply chain of manufacturing industries. 216 data were used, SPSS and AMOS were used for the analysis methods. Study results showed that ICT internal collaboration capabilities affect agility, one of RTE capabilities, but not visibility and prediction, and ICT operational flexibility capabilities have affected all three RTE capacities. And, RTE capabilities had a huge impact on supply chain performance as expected. In this paper, it has been found that the ICT capabilities in manufacturing are an important factor in improving RTE capabilities that are important in the supply chain and improving the performance of the supply chain.