The effect of IT-enabled supply chain integration on performance

Companies increasingly rely on information technology (IT) to improve supply chain management practices. However, past evidence suggests that implementing IT in the supply chain process does not guarantee enhanced firm performance. This study extends prior supply chain research by conceptualising supply chain integration (SCI) as a multidimensional construct in the context of IT implementation and exploring the effect of multiple dimensions of IT-enabled SCI on performance. The conceptual framework is tested using data from a sample of 214 manufacturing firms in China. The results indicate positive direct relationships between IT implementation and three dimensions of SCI, namely internal, customer and supplier integration. The results also suggest that IT-enabled internal integration is significantly and positively related to both operational and financial performance.