Mediating effects of business process for international trade industry on the relationship between information capital and company performance

Abstract

To explore the relationship of information capital and company performance as mediated by business processes, we sought to establish an analytical framework based on knowledge based view for international trade companies to better develop the innovative capacity of holistic thinking processes of domestic trade enterprises. Using structural equation modeling as part of an analytical research framework, we found that information capital can indirectly affect company performance when mediated by business processes, and that information capital is more critical to the trade industry. This finding reveals that adopting and assimilating information systems form an important channel for companies to provide strategic information and use information capital. We highlighted that the improvement of information capital can significantly enhance a company’s competitiveness and that, since business processes play key mediating roles, the timely adjustment of such processes can allow information capital to enhance company performance of the international trade industry.