Impact of information technology on supply chain integration and company performance: evidence from cross-border e-commerce companies in China

Abstract

PurposeBased on the resource-based view and organizational capability theory, we examine the effect of information technology (IT) on company performance through supply chain integration (SCI) from the upstream and downstream perspective of the whole supply chain.Design/methodology/approachBased on data collected from 296 cross-border e-commerce (CBE) companies in China, we used structural equation modeling with LISREL to test the conceptual model.FindingsThe results show that supplier and customer IT significantly promote supplier and customer system and process integration. Supplier system and process integration enhance operational performance. Meanwhile, IT indirectly affects financial performance through operational performance. Customer system integration has positive effects on operational and financial performance, with an indirect effect on financial performance through operational performance. However, customer process integration only improves financial performance.Research limitations/implicationsWe only use cross-sectional data from Zhejiang province of China to investigate relationships of related constructs. Future studies can also use longitudinal data in combination with secondary data from other provinces, regions and countries.Practical implicationsThe results provide important managerial insights for CBE companies to sustain their competitive advantages by improving their performances through IT and SCI practices throughout the upstream and downstream data-driven supply chain.Originality/valueThis study contributes to the IT and SCI literature by exploring the effectiveness of IT in improving SCI and company performance from the upstream and downstream perspective and the perspective of IT.

The Impact of Organizational Context on the Levels of Cross-Border E-Commerce Adoption in Chinese SMEs: The Moderating Role of Environmental Context

“…These findings are in line with our arguments of the intensity of competitive pressure, suppliers' pressure, governmental rules and regulations, and organizational e-readiness [18,44,45]. This finding is also in line with the argument of [4,[14][15][16], who argued that the direct relationship as asserted by the T-O-E framework may not be fully explained and that ill-informed decisions are being made. They claimed that there are other intervening and/or mitigating variables, such as the environmental context in our case, that can strengthen or weaken these direct relationships.…”

“…With this huge potential of opportunities for SMEs in CBEC, it is reasonable to understand the drivers, motivators, and even mitigating factors of CBEC adoption [3]. In the past, several studies on technological adoption have been conducted by scholars (e.g., [3,[10][11][12][13][14], etc. ); however, limited studies have considered the moderating role of potential variables that may mitigate the relationship of CBEC adoption [4,[15][16][17].…”

Understanding the link between IS capabilities and cost performance in services: the mediating role of supplier integration

“…While considerable attention has been paid to ensure the validity and reliability of this study, there are limitations. Firstly, the method of data collection in this study was a survey, which is consistent with a number of survey studies of supply chain integration (Sundram et al, 2018;Yu et al, 2020). However, a cross-sectional survey by its nature, limits the depth of understanding of the value of IS capabilities, since the three dimensions of IS capabilities are complex and develop over time.…”

Understand China’s cross-border e-commerce industry: a market entry mode

“…Amid the 4th industrial revolution, Yu et al (2021) identify numerous advantages of information technology on CBEC's supply chain integration. The information technology could improve supply chain visibility, strengthen the communication loop, enhancing efficient transaction, and effective system integration.…”