Volume 25, Issue 6 pp. 1199-1216

Impact of eBusiness technologies on operational performance: The role of production information integration in the supply chain

Sarv Devaraj

Corresponding Author

Sarv Devaraj

Management Department, Mendoza College of Business, University of Notre Dame, Notre Dame, IN 46556, United States

Tel.: +1 574 631 5074.

Corresponding author. Tel.: +574 631 9063.Search for more papers by this author
Lee Krajewski

Corresponding Author

Lee Krajewski

Management Department, Mendoza College of Business, University of Notre Dame, Notre Dame, IN 46556, United States

Corresponding author. Tel.: +574 631 9063.Search for more papers by this author
Jerry C. Wei

Corresponding Author

Jerry C. Wei

Management Department, Mendoza College of Business, University of Notre Dame, Notre Dame, IN 46556, United States

Tel.: +1 574 631 5460.

Corresponding author. Tel.: +574 631 9063.Search for more papers by this author
First published: 17 January 2007
Citations: 572

Abstract

While the information technology (IT) literature is mixed regarding the direct benefits of eBusiness technologies on performance, the impact of such technologies on supply chain practices remains largely an unexplored area of research. We hypothesize that while there may be no direct benefit of eBusiness technologies on performance, these technologies might support customer integration and supplier integration in the supply chain, which in turn might impact operating performance.

To examine our hypotheses, we collected data from respondents who focused their responses to a single major product the process that manufactures it, a significant customer, and an important supplier. Our analyses showed that there was no direct benefit of eBusiness technologies on performance; however these technologies supported customer integration and supplier integration. Further, supplier integration was found to positively impact cost, quality, flexibility, and delivery performance; however there was no relationship between customer integration and performance. Consequently, there is a relationship between eBusiness technologies and supplier integration that leads to better performance. Further, there is an interactive effect between customer integration and supplier integration that supports the notion that firms that have both forms of integration, supported by eBusiness technologies, significantly outperform the others.

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