Research indicates that deploying appropriate information technology (IT) competency in a manner that fits the supply chain integration (SCI) of a firm induces superior firm performance; however, our understanding of how to empirically conceptualize and assess the performance effect of the fit remains limited. Drawing upon resource orchestration theory and the literature on fit assessment methodologies, our study employs both a contingency and a configuration perspective to conceptualize and operationalize “fit.” The results of a survey of 196 firms in China provide the first empirical evidence for the existence and nature of interrelationships between multiple components of SCI and IT competency and their effects on firm performance. In particular, fit as “moderation” approach indicates that IT competency could strengthen the relationship between SCI and both operational and financial performance. Fit as “profile deviation” approach further reveals that the more similar the IT competency configurations are to those of the top performers in the high‐level SCI group, the higher their operational and financial performance are. However, in the medium‐ and low‐level SCI groups, the SCI‐IT competency fit is significantly positively associated with financial performance and insignificantly associated with operational performance. The theoretical contributions and managerial implications of the study are discussed.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.