Leveraging Smart Supply Chain and Information System Agility for Supply Chain Flexibility

Abstract

Global businesses are leveraging their analytical capabilities to develop competence over others. This study uses Organization Information Processing Theory (OIPT) in context to explain the relationship between the smart supply chain and information system flexibility to achieve an overall greater supply chain flexibility. Also, this shows that correct deployment of information processing leads to better diffusion of information throughout the system necessary for making the supply chain more adaptive in nature. This study extends the application of OIPT theory and a better understanding of analytical data processing and theoretically grounded guidance to managers in order to achieve a higher degree of flexibility in dynamic conditions. The Partial Least Square Method based on Structural Equation Modeling is used to empirically test the theoretical framework. Results from the analysis of 150 respondents indicate the strong relationship between the components of the smart supply chain and information systems agility. The research shows a positive relationship between the characteristics of smart supply chain management and modules of information system flexibility which leads to the achievement of a high level of supply chain flexibility.