The Effect of Information Technology, Cross-functional Team and Information Sharing on Supply Chain Management under Technological Uncertainty

Abstract

The purpose of this study is to examine the effects of information utilization and information sharing among supply chain partners on supply chain management (SCM) activities under an uncertain technological environment. This study uses data from 125 manufacturing firms listed on the Korean Stock Exchanges in 2014 in order to testing the impact of information technology and information sharing on SCM. Results revealed that technological uncertainty leads organizations to utilize more sophisticated IT systems and initiate cross-functional teams (CFTs). In addition, IT systems and information sharing among SC partners can contribute to logistics integration and cooperation which are considered as SCM activities. However, CFTscan integrate the flow of goods along the supply chain, but not improve the intention to cooperate with each other. In fact, both IT systems and CFTs undertake the mediating role between technological uncertainty and logistics integration, respectively. Moreover, IT systems also improve the cooperation among SC partners under an uncertain technological environment. Thus, this study suggests that firms should invest their resources in IT systems and encourage CFTs for coping with threats and risks from a rapidly changing technological environment.