Supply chain information technologies and organisational initiatives: complementary versus independent effects on agility and firm performance

Abstract

This research investigates the roles of supply chain information technologies (SCIT) and supply chain organisational initiatives (SCOI) in engendering agility and business performance in manufacturing firms. We examine two competing models, both of which incorporate agility as a mediator between the use of SCIT or SCOI and firm performance; the models differ in how the impacts of SCIT and SCOI are manifest. In one model, SCIT and SCOI are hypothesised to have separate effects on agility, which then impacts firm performance; in the second model, complementarities, or the interaction of SCIT and SCOI, impacts agility directly. Structural equation modelling results show that agility is full mediator, related to firm performance in both models. Further, the model with complementary interactions fits better. These results have implications for how manufacturing firms can position their investments in SCIT and SCOI to enhance agility and overall performance.