Strategic Buyer–Supplier Relationships, Information Technology and External Logistics Integration

TLDR

Vertical disintegration and market globalization have heightened focus on coordinating material and information flows across supply chain partners, with implications for future research and practice. The study investigates how strategic buyer–supplier relationships and information technology influence a firm’s external logistics integration and agility performance. Using data from more than 200 firms, the authors employ a structural equation model to examine these relationships. The model shows that strategic buyer–supplier relationships and information technology foster external logistics integration, which in turn enhances agility performance, and that information technology moderates the relationship between buyer–supplier ties and integration.

Abstract

SUMMARY The advent of vertical disintegration coupled with the globalization of markets has brought about increased attention to how firms coordinate flow of materials and information across their supply chain partners. The current research explores the impact of strategic buyer–supplier relationships and information technology on a firm's external logistics integration and agility performance using data collected from over 200 firms. The proposed structural equation model reveals that strategic buyer–supplier relationships and information technology engender external logistics integration, which in turn, affects agility performance of firms. Furthermore, information technology moderates the link between buyer–supplier relationships and logistics integration. Implications for future research and practice are also discussed.