How do Partners Benefit from IT Use in Supply-Chain Management: An Empirical Study of Taiwan’s Bicycle Industry
To be sustainable and growing amongst uncertain environments and intensive global competition, supply-chain network leaders have established supply-chain management systems (SCMS) to leverage the resources and knowledge of their partners to achieve greater supply-chain capabilities (SCC) to respond...
Main Authors: | , , , , |
---|---|
Format: | Article |
Language: | English |
Published: |
MDPI AG
2020-04-01
|
Series: | Sustainability |
Subjects: | |
Online Access: | https://www.mdpi.com/2071-1050/12/7/2883 |
id |
doaj-0905de83b7514208a978ac445c601fc0 |
---|---|
record_format |
Article |
spelling |
doaj-0905de83b7514208a978ac445c601fc02020-11-25T02:10:45ZengMDPI AGSustainability2071-10502020-04-01122883288310.3390/su12072883How do Partners Benefit from IT Use in Supply-Chain Management: An Empirical Study of Taiwan’s Bicycle IndustryJing Li0Chien-Wen Chen1Chi-Hui Wu2Hsing-Chun Hung3Ching-Torng Lin4Program in Management, Dayeh University, Changhua 51591, TaiwanDepartment of Business Administration, Feng Chia University, Taichung 40724, TaiwanDepartment of Management and Information, National Open University, New Taipei 24701, TaiwanProgram in Management, Dayeh University, Changhua 51591, TaiwanDepartment of Information Management, Dayeh University, Changhua 51591, TaiwanTo be sustainable and growing amongst uncertain environments and intensive global competition, supply-chain network leaders have established supply-chain management systems (SCMS) to leverage the resources and knowledge of their partners to achieve greater supply-chain capabilities (SCC) to respond to market changes and complexity. Although several studies have investigated the benefits to network leaders from these systems in various industries, little attention has been paid to the delivery of substantial benefits and advantages to its partners. Based on information technology (IT) applications and SCC literature, this paper proposes a model relating partners use of SCMS to benefits. Data from 168 partners using an SCMS implemented by a leading bicycle supply chain in Taiwan to test the hypotheses that SCC and operational performance has a mediating role linking SCMS use in order to affect a partner’s performance. The results indicate that SCMS implementation has a significant impact on SCC, which in turn create a significant positive effect on operational (sustainable) performance, ultimately leading to improved growth rate and profitability in partners. Another interesting finding of the research is that SCMS cannot directly affect financial performance. In addition, from sustainable performance aspects, it is revealed that IT enables supply chain management (SCM) to achieve environmental value through information sharing (up and down), process integration (vertical and horizontal) and automation (i.e., planning, operation and control). This finding highlights the importance for maximizing benefits and sustainability for the whole supply-chain partners, the IT implementation must be integrated with the sustainable development goals and inserted in the eco-operation supply-chain platform process. The results also contribute to the debate in prior studies by disclosing why so many partners could not find to gain benefit from these IT implementations. Furthermore, this study represents the first attempt to examine how partners benefit from IT use in SCC for traditional industry.https://www.mdpi.com/2071-1050/12/7/2883information technology applicationsupply-chain management systemssupply-chain capabilitiesoperational (sustainable) performancefinancial performance |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Jing Li Chien-Wen Chen Chi-Hui Wu Hsing-Chun Hung Ching-Torng Lin |
spellingShingle |
Jing Li Chien-Wen Chen Chi-Hui Wu Hsing-Chun Hung Ching-Torng Lin How do Partners Benefit from IT Use in Supply-Chain Management: An Empirical Study of Taiwan’s Bicycle Industry Sustainability information technology application supply-chain management systems supply-chain capabilities operational (sustainable) performance financial performance |
author_facet |
Jing Li Chien-Wen Chen Chi-Hui Wu Hsing-Chun Hung Ching-Torng Lin |
author_sort |
Jing Li |
title |
How do Partners Benefit from IT Use in Supply-Chain Management: An Empirical Study of Taiwan’s Bicycle Industry |
title_short |
How do Partners Benefit from IT Use in Supply-Chain Management: An Empirical Study of Taiwan’s Bicycle Industry |
title_full |
How do Partners Benefit from IT Use in Supply-Chain Management: An Empirical Study of Taiwan’s Bicycle Industry |
title_fullStr |
How do Partners Benefit from IT Use in Supply-Chain Management: An Empirical Study of Taiwan’s Bicycle Industry |
title_full_unstemmed |
How do Partners Benefit from IT Use in Supply-Chain Management: An Empirical Study of Taiwan’s Bicycle Industry |
title_sort |
how do partners benefit from it use in supply-chain management: an empirical study of taiwan’s bicycle industry |
publisher |
MDPI AG |
series |
Sustainability |
issn |
2071-1050 |
publishDate |
2020-04-01 |
description |
To be sustainable and growing amongst uncertain environments and intensive global competition, supply-chain network leaders have established supply-chain management systems (SCMS) to leverage the resources and knowledge of their partners to achieve greater supply-chain capabilities (SCC) to respond to market changes and complexity. Although several studies have investigated the benefits to network leaders from these systems in various industries, little attention has been paid to the delivery of substantial benefits and advantages to its partners. Based on information technology (IT) applications and SCC literature, this paper proposes a model relating partners use of SCMS to benefits. Data from 168 partners using an SCMS implemented by a leading bicycle supply chain in Taiwan to test the hypotheses that SCC and operational performance has a mediating role linking SCMS use in order to affect a partner’s performance. The results indicate that SCMS implementation has a significant impact on SCC, which in turn create a significant positive effect on operational (sustainable) performance, ultimately leading to improved growth rate and profitability in partners. Another interesting finding of the research is that SCMS cannot directly affect financial performance. In addition, from sustainable performance aspects, it is revealed that IT enables supply chain management (SCM) to achieve environmental value through information sharing (up and down), process integration (vertical and horizontal) and automation (i.e., planning, operation and control). This finding highlights the importance for maximizing benefits and sustainability for the whole supply-chain partners, the IT implementation must be integrated with the sustainable development goals and inserted in the eco-operation supply-chain platform process. The results also contribute to the debate in prior studies by disclosing why so many partners could not find to gain benefit from these IT implementations. Furthermore, this study represents the first attempt to examine how partners benefit from IT use in SCC for traditional industry. |
topic |
information technology application supply-chain management systems supply-chain capabilities operational (sustainable) performance financial performance |
url |
https://www.mdpi.com/2071-1050/12/7/2883 |
work_keys_str_mv |
AT jingli howdopartnersbenefitfromituseinsupplychainmanagementanempiricalstudyoftaiwansbicycleindustry AT chienwenchen howdopartnersbenefitfromituseinsupplychainmanagementanempiricalstudyoftaiwansbicycleindustry AT chihuiwu howdopartnersbenefitfromituseinsupplychainmanagementanempiricalstudyoftaiwansbicycleindustry AT hsingchunhung howdopartnersbenefitfromituseinsupplychainmanagementanempiricalstudyoftaiwansbicycleindustry AT chingtornglin howdopartnersbenefitfromituseinsupplychainmanagementanempiricalstudyoftaiwansbicycleindustry |
_version_ |
1724917687013867520 |