Impact of information technology on supply chain integration and company performance: evidence from cross-border e-commerce companies in China

Abstract

PurposeBased on the resource-based view and organizational capability theory, we examine the effect of information technology (IT) on company performance through supply chain integration (SCI) from the upstream and downstream perspective of the whole supply chain.Design/methodology/approachBased on data collected from 296 cross-border e-commerce (CBE) companies in China, we used structural equation modeling with LISREL to test the conceptual model.FindingsThe results show that supplier and customer IT significantly promote supplier and customer system and process integration. Supplier system and process integration enhance operational performance. Meanwhile, IT indirectly affects financial performance through operational performance. Customer system integration has positive effects on operational and financial performance, with an indirect effect on financial performance through operational performance. However, customer process integration only improves financial performance.Research limitations/implicationsWe only use cross-sectional data from Zhejiang province of China to investigate relationships of related constructs. Future studies can also use longitudinal data in combination with secondary data from other provinces, regions and countries.Practical implicationsThe results provide important managerial insights for CBE companies to sustain their competitive advantages by improving their performances through IT and SCI practices throughout the upstream and downstream data-driven supply chain.Originality/valueThis study contributes to the IT and SCI literature by exploring the effectiveness of IT in improving SCI and company performance from the upstream and downstream perspective and the perspective of IT.