Effect of Logistic Information Integration Capability on Performance of Manufacturing Firms: The Moderating Role of Supply Chain Linkages
Keywords:
Performance; Logistic Information Integration Capability; Supply Chain Linkages
Abstract
Several studies content that firms may improve their performance by integrating their logistic capabilities. But such relationships may be affected by other externalities. Therefore, this study determined the role of supply chain linkages as a moderator on the relationship between logistic information integration capability and firm performance of manufacturing firms. The study adopted explanatory research design of cross-sectional nature. The target population comprised of 750 manufacturing firms registered under Kenya Association of Manufacturers. Sample size of 442 firms was selected using stratified and simple random sampling approaches. The findings of the study demonstrated that logistic information integration capability positively and significantly affects firm performance, subject to moderation effect of supply chain linkages. The implication of the study emphasizes the need for firm managers to understand and find ways to effectively manage the interactions between logistic information integration capability and supply chain linkages in order to improve performance and meet the customer requirements satisfactorily. Therefore, this study provides empirical evidence in manufacturing firms that supply chain moderates the relationship between logistic information integration capability and firm performance.
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References
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Gopal, P., Thakkar, J. (2012). A review on supply chain performance measures and metrics: 2000-2011. International Journal of Productivity and Performance Management. 61, 518-547.
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Handfield, R.B., Cousins, P.D., Lawson, B., Petersen, K.J. (2015). How can supply management really improve performance? A knowledge‐based model of alignment capabilities. Journal of Supply Chain Management. 51, 3-17.
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Huo, B., Han, Z., Prajogo, D. (2016). Antecedents and consequences of supply chain information integration: a resource-based view. Supply Chain Management: An International Journal. 21, 661-677.
Hyvönen, J. (2007). Strategy, performance measurement techniques and information technology of the firm and their links to organizational performance. Management Accounting Research. 18, 343-366.
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Jajja, M.S.S., Kannan, V.R., Brah, S.A., Hassan, S.Z. (2017). Linkages between firm innovation strategy, suppliers, product innovation, and business performance: insights from resource dependence theory. International Journal of Operations & Production Management. 37, 1054-1075.
Jayaram, J., Xu, K. (2016). Determinants of quality and efficiency performance in service operations. International Journal of Operations & Production Management. 36, 265-285.
Juhn, C., McCue, K., Monti, H., Pierce, B. (2018). Firm performance and the volatility of worker earnings. Journal of Labor Economics. 36, S99-S131.
Kembro, J., Näslund, D., Olhager, J. (2017). Information sharing across multiple supply chain tiers: A Delphi study on antecedents. International Journal of Production Economics. 193, 77-86.
Ketikidis, P., Koh, S., Dimitriadis, N., Gunasekaran, A., Kehajova, M. (2008). The use of information systems for logistics and supply chain management in South East Europe: Current status and future direction. Omega. 36, 592-599.
Khan, S.A.R., Yu, Z., Qianli, D. (2019). Study on the supply chain integration: In the perspective of Pakistan, Computational intelligence and sustainable systems. Springer, pp. 255-265.
Kim, M., Chai, S. (2017). The impact of supplier innovativeness, information sharing and strategic sourcing on improving supply chain agility: Global supply chain perspective. International Journal of Production Economics. 187, 42-52.
Klassen, R.D., Vereecke, A. (2012). Social issues in supply chains: Capabilities link responsibility, risk (opportunity), and performance. International Journal of Production Economics. 140, 103-115.
Klein, R., Rai, A. (2009). Interfirm strategic information flows in logistics supply chain relationships. Mis quarterly. 735-762.
Kolade, O., Obembe, D., Salia, S. (2019). Technological constraints to firm performance: the moderating effects of firm linkages and cooperation. Journal of Small Business and Enterprise Development. 26, 85-104.
Kraaijenbrink, J., Spender, J.-C., Groen, A.J. (2010). The resource-based view: a review and assessment of its critiques. Journal of management. 36, 349-372.
Kristjansdottir, K., Shafiee, S., Bonev, M., Hvam, L., Bennick, M.H., Andersen, C.S. (2016). Improved Performance and Quality of Configurators by Receiving Real-Time Information from Suppliers, Configuration Workshop.
Leavy, P. (2017). Research design: Quantitative, qualitative, mixed methods, arts-based, and community-based participatory research approaches. Guilford Publications.
Leuschner, R., Rogers, D.S., Charvet, F.F. (2013). A meta‐analysis of supply chain integration and firm performance. Journal of Supply Chain Management. 49, 34-57.
Li, X., Wu, Q., Holsapple, C.W. (2015). Best-value supply chains and firms’ competitive performance: empirical studies of their linkage. International Journal of Operations & Production Management. 35, 1688-1709.
Li, X., Holsapple, C.W., Goldsby, T.J. (2019). The structural impact of supply chain management teams: Supply chain agility development in multidivisional firms. Management Research Review. 42, 290-310.
Lin, Y.-H., Tseng, M.-L. (2016). Assessing the competitive priorities within sustainable supply chain management under uncertainty. Journal of Cleaner Production. 112, 2133-2144.
Lomberg, C., Urbig, D., Stöckmann, C., Marino, L.D., Dickson, P.H. (2017). Entrepreneurial orientation: The dimensions’ shared effects in explaining firm performance. Entrepreneurship Theory and Practice. 41, 973-998.
Lu, C.-S., Yang, C.-C. (2010). Logistics service capabilities and firm performance of international distribution center operators. The Service industries journal. 30, 281-298.
Maiga, A.S., Nilsson, A., Ax, C. (2015). Relationships between internal and external information systems integration, cost and quality performance, and firm profitability. International Journal of Production Economics. 169, 422-434.
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Published
2019-10-24
How to Cite
Kimitei, E., Lagat, C., Chepkwony, J., & Harggerty, N. (2019). Effect of Logistic Information Integration Capability on Performance of Manufacturing Firms: The Moderating Role of Supply Chain Linkages. Journal of Research in Business, Economics and Management, 13(3), 2480-2493. Retrieved from http://scitecresearch.com/journals/index.php/jrbem/article/view/1787
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