Information Sharing with ICT in Production Systems and Operational Performance

Abstract

In globalized times the integration of information and communication technologies in companies and their supply chains is required, but there is uncertainty regarding the true impact that these have on efficiency indices or benefits gained in the productive system. This article reports a structural equation model that contains ten hypotheses with five latent variables associated with the integration of information and communication technology in production systems such as information exchange, operations management, production control, distribution activities, and operational benefits obtained. The paper aims to quantify the relationships among those variables, facilitating managers to make decisions in information and communication technologies (ICT) implementation. The model is validated with information from 80 responses to a questionnaire applied to manufacturing companies, and partial least-squares technique is used to statistically validate the hypotheses; the results indicate that the implementation of information technologies facilitates the exchange of information, operations management and production control. This means that ICT integration can create visibility for a supply chain in a material’s flow among partners, facilitate operations management in production lines and distribution activities, and these benefits are ultimately transformed into operational benefits that managers measure as flexibility, low cost and short cycles times with customers.