Information systems, inter-functional collaboration and innovation in Taiwanese high-tech manufacturing firms

Abstract

This paper investigates whether a) cross-functional integration within a firm and the use of information systems that support information sharing with external parties can enhance integration across the supply chain and wider networks, and b) whether collaboration with customers, suppliers and other external parties leads to increased supply chain performance in terms of new product development and introduction of new processes. Data from a high-quality survey carried out in Taiwan in 2009 were used, and appropriate econometric models applied. Results show that the adoption of information systems that enhance information sharing is vital not only for the effective communication with suppliers and with wider network members, but their adoption also has a direct effect across a firm's innovative effort. Cross-functional integration appears to matter only for the introduction of an innovative process. Collaboration with customers and suppliers affected a product's design and its overall features and functionality respectively.

The effect of IT-enabled supply chain integration on performance

“…For instance, Ragatz, Handfield, and Scannell (1997) identified that the use of common and linked information systems (such as EDI) is a key success factor for integrating suppliers into the new product/service development process. Ganotakis, Hsieh, and Love (2013) also found that the adoption of information systems that enhance information sharing is important for the effective communication with suppliers and with wider network members. Subramani (2004) found that IT deployments in supply chains lead to closer buyersupplier relationships.…”

“…By focusing on inter-organisational collaboration, some studies have reported the positive effects of IT implementation on buyer-supplier relationships (Bakos and Brynjolfsson 1993;Ganotakis, Hsieh, and Love 2013;Ragatz, Handfield, and Scannell 1997;Subramani 2004). For instance, Ragatz, Handfield, and Scannell (1997) identified that the use of common and linked information systems (such as EDI) is a key success factor for integrating suppliers into the new product/service development process.…”

“…In recent years, there has been increasing interest in understanding the use of IT in managing the supply chain process (Baihaqi and Sohal 2013;Li et al 2009;Prajogo and Olhager 2012;Wu et al 2006). Previous research has identified the importance of IT in achieving an integrated supply chain (Ganotakis, Hsieh, and Love 2013;Gunasekaran and Ngai 2004;Li et al 2009). Implementation of IT in supply chains can enable a firm to develop integrated supply chains to leverage the resources and knowledge of their suppliers and customers, which in turn leads to superior firm performance (Schnetzler and Schönsleben 2007;Tippins and Sohi 2003).…”

Experience in R&D collaborations, innovative performance and the moderating effect of different dimensions of absorptive capacity

“…Hence, managers persist in using existing practices at the expense of introducing new and more efficient ones (Dodgson, 1993;Levitt and March, 1988). This in turn does not allow a firm to reach the possible (viable) maximum level of efficiency in transferring and assimilating knowledge from external partners that could have been achieved if they had implemented new routines based for example on the adoption of new management practices that have been recently developed and diffused in the market, or on the adoption of information systems (Ganotakis et al, 2013;Barczack et al, 2007). By improving existing practices, firms can escape competency traps and improve the value of collaborations as recently implemented routines are more easily evoked by an organization and are more likely to be used in relation to older ones (Levitt and March, 1988).…”

Guest editorial: information technology-enabled supply chain management

“…Ganotakis, Hsieh and Love (2012) showed that information systems (IS) adoption in Taiwan enhanced information sharing, not only with supply chain members, but also with external parties. The study also revealed that IS adoption enabled smooth inter-firm communication and information sharing, and assisted in intra-firm information.…”