Modeling the Relationship Between Firm It Capability, Collaboration, and Performance

Document Type

Article

Publication Date

Spring 2005

Identifier/URL

40898213 (Pure)

Abstract

This article discusses the significance of information technology (IT) investments to the collaboration and performance of a company. Advancements in IT capability have rapidly changed the face of industry over the past decade. Functions that have been particularly impacted are supply chain management and logistics. Supply chain management, founded on collaboration between supply chain partners is intended to bring performance benefits to the organization. Information sharing provides firms with forward visibility, improving production planning, inventory management, and distribution. This collaboration is facilitated by the existence of an efficient and effective IT system. IT, which allows for the transmission and processing of information necessary for synchronous decision making, can be viewed as the backbone of the supply chain business structure. Advancements in IT capabilities have significantly improved the extent of internal and external organizational information sharing. It has been positively linked to firm performance and shown to have the potential of providing a significant competitive advantage to firms. Similarly, firm collaboration has been shown to have a positive impact on performance.

Comments

Publisher Copyright: 2005 Council of Supply Chain Management Professionals

DOI

10.1002/j.2158-1592.2005.tb00192.x

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