The impact of IT implementation on supply chain integration and performance

The implementation of information technology (IT) for supply chain management (SCM) is becoming more and more important in the context of an increasingly globalized and competitive economy. IT, by providing timely, accurate, and reliable information, has greatly improved supply chain performance (SCP). This study aims to investigate the relationship among three factors: IT implementation, supply chain integration (SCI), and SCP. It presents a conceptual structure model in which IT implementation can affect SCP either directly or indirectly, via SCI. Data collected from 182 Chinese companies are analyzed using structural equation modeling. The results suggest that IT implementation has no direct effect on SCP, but instead that it enhances SCP through its positive effect on SCI. These findings highlight the importance for companies to promote SCI and implement IT as an enabler. (C) 2008 Elsevier B.V. All rights reserved.