The inside-out dynamics of supply chain integration: the interplay of information technology integration with and by suppliers

Abstract

PurposeThis research examines how to enhance financial performance (FP) through the interplay between information technology and their suppliers in the supply chain. On this, the research objective is to assess the role of integration with suppliers (IWS) and integration by suppliers (IBS) in the interface between integrated information technology (IIT) and FP in the supply chain.Design/methodology/approachA theoretical model was designed, and hypotheses were tested with structural equation modelling and qualitative data from a survey of 205 multi-industry companies from Egypt.FindingsThe findings indicate that IIT has a positive significant relationship with financial performance, in this case, partially mediated jointly by IWS and IBS.Originality/valueThis study contributes to the literature by establishing a measurement approach for the proposed duality of supplier integration. A crucial implication of this duality is the requirement of IWS and IBS to enhance the effect of IIT on FP in supply chain partnerships and the fact revealed in our research that IWS precedes IBS in supply chains.