The impact of supply chain information integration on supply chain coordination and organizational performance: does directionality matter?

Abstract

This study evaluates how relationships, information characteristics, and supply chain information integration influence supply chain coordination and organizational performance in Bangladesh’s ready-made garment sector. Organizational performance includes operational performance and competitive performance. Data has been collected from 171 supplier-manufacturer dyads. Drawing on the coordination theory, this study theorizes that supply chain information integration and coordination can increase organizational performance. The structural equation modelling approach was used in data analysis. Generally, this study discloses that relationships and information characteristics positively influence supply chain information integration. Supply chain information integration directly influences supply chain coordination and competitive performance, whereas supply chain coordination is significantly related to operational and competitive performance. Moreover, supply chain coordination mediates the two relationships: supply chain information integration and operational performance and supply chain information integration and competitive performance. New insights are added by examining the relationships that connect the antecedents of supply chain information integration, supply chain information integration, and outcomes by looking at the focal manufacturing firm and its dyadic supplier partner separately. Separate examination in the dyad exhibits some identical and diverse outcomes. Furthermore, we suggest theoretical and practical implications for academics for theory building and managers.