Abstract
There is a wide acceptance of the strategic importance of integrating up-to-date information technology with effective supply chain practice. However, little is known about how the alignment between information technology and supply chain practice impacts business performance. This paper investigates two supply chain practices (i.e. sourcing practice and delivery practice) and information quality. Scales measuring sourcing practice, delivery practice, and information quality were developed. Four strategic clusters of companies, using alternative supply chain strategies, are identified. In three of the strategic clusters, the level of supply chain practice is consistent with the level of information quality. The fourth strategic cluster has a high level of information quality but a low level of effective supply chain practices. In this study, the fourth strategic cluster performed consistently worse than the other three strategic clusters. The performance measures consist of sales revenue and profitability. This study shows that firms need to align supply chain practice with the level of their information quality in order to achieve good overall business performance. Implications of our findings and future research opportunities are addressed.
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