The impact of IT implementation on quality of shared information and its effect on firm performance: evidence from China

Abstract

Issues relating to quality of shared information have received increasing attention from scholars and practitioners in recent years. However, our knowledge of the antecedents and consequences of quality of shared information is still limited. This study extends the organisational information processing theory, social exchange theory and knowledge-based view established in Western information management literature through examining the impact of IT implementation on quality of shared information with customers and suppliers, and the mediating effect of operational performance on the relationship between quality of shared information and financial performance. We propose and empirically test a model using data collected from 176 manufacturing companies in China. The results indicate that IT implementation is important in improving the quality of shared information with customers and suppliers. Furthermore, both quality of shared information with customers and quality of shared information with suppliers positively impact operational performance, which, in turn, leads to improvements in firms' financial performance. These findings provide a new perspective for information sharing and highlight the importance of high quality of shared information.