Influence of inter‐organisational integration on business performance

Abstract

PurposeThe purpose of this paper is to investigate the mediating role of organisational level supply chain activities on the effect of inter‐organisational information systems (IOIS) and activity (IOA) integration on business performance of retailing organisations within Australia.Design/methodology/approachThe study followed a causal research approach and survey methodology to collect data from the managers of food and hardware retailers. Multiple regression and MacKinnon et al.'s mediation analysis were used to investigate the hypothesised relationships.FindingsThe results suggest that inter‐organisational information systems (IOIS) and activity integration have positive effects on customer responsiveness and financial performance of organisations. Organisational‐level supply chain functions mediate the relationships between IOIS and activity integration and customer responsiveness, as well as financial performance.Research limitations/implicationsThe research focused at the retailer level of the supply chain. Large‐scale cross‐sectional studies that include other levels of supply chain are required for generalisability.Practical implicationsThe research suggests that organisations need to integrate their inter‐organisational information systems and activities with supply chain partners to enhance supply chain and business performance.Originality/valueThe results extend the body of knowledge on inter‐organisational information systems, inter‐organisational integration and supply chain management. The study also provides some empirical insights into management practices in the retailing sector.