The configuration between supply chain integration and information technology competency: A resource orchestration perspective

Abstract

Research indicates that deploying appropriate information technology (IT) competency in a manner that fits the supply chain integration (SCI) of a firm induces superior firm performance; however, our understanding of how to empirically conceptualize and assess the performance effect of the fit remains limited. Drawing upon resource orchestration theory and the literature on fit assessment methodologies, our study employs both a contingency and a configuration perspective to conceptualize and operationalize “fit.” The results of a survey of 196 firms in China provide the first empirical evidence for the existence and nature of interrelationships between multiple components of SCI and IT competency and their effects on firm performance. In particular, fit as “moderation” approach indicates that IT competency could strengthen the relationship between SCI and both operational and financial performance. Fit as “profile deviation” approach further reveals that the more similar the IT competency configurations are to those of the top performers in the high‐level SCI group, the higher their operational and financial performance are. However, in the medium‐ and low‐level SCI groups, the SCI‐IT competency fit is significantly positively associated with financial performance and insignificantly associated with operational performance. The theoretical contributions and managerial implications of the study are discussed.

Role of Information and Communication Technology in Green Supply Chain Implementation and Companies’ Performance

“…This is because one complements the other, which is validated via H 1 , as the greatest and most significant direct effect in the entire model, since keeping ICTs integrated and updated provides a platform that helps companies to exchange knowledge, align processes and achieve operational flexibility. Furthermore, the integration of ICT affects the efficiency and effectiveness of business processes within and beyond the boundaries of the organization and updated ICTs become an important advantage that is reflected in the efficiency of operations performance [26,56].…”

How Information Technology Assimilation Promotes Exploratory and Exploitative Innovation in the Small‐ and Medium‐Sized Firm Context: The Role of Contextual Ambidexterity and Knowledge Base

“…This study conceptualizes variables that reflect the SME context in the theoretical framework. More specifically, IT assimilation that describes firms’ IT competency (Armstrong and Sambamurthy, ; Liu et al, ) reflects SMEs’ ability to use IT as a business tool to create value and support their business practices rather than building complex IT infrastructures (Levy and Powell, ). CA is a more appropriate description for ambidextrous SMEs because it is unlikely that SMEs will develop separate structural units to handle their alignment and adaptability‐oriented practices (De Clercq et al, ).…”

“…This study aims to enrich this indirect aspect of the IT competency–innovation relationship. More specifically, IT assimilation is a form of IT competency (Liu et al, ; Wade and Hulland, ) that reflect SMEs’ focus on integrating IT into their business operations in order to improve their efficiency, effectiveness, and flexibility (Levy and Powell, ). Exploratory and exploitative innovation represent two types of innovation activities that can create value and help SMEs to generate superior performance (Kollmann and Stöckmann, ).…”

“…For example, an industry study shows that a high percentage (over 90%) of senior executives believe that IT can be used to facilitate innovation (O’Mahony, Padmore, and Suh, ). According to the resource‐based theory (RBT) perspective of IT, IT (assets) existing in a synergistic relationship with different business activities can lead to the development of “IT competency” (Liu, Wei, Ke, Wei, and Hua, ; Nevo and Wade, ). A firm’s IT competency allows it to perform value‐creating activities which are the key drivers of superior performance (Nevo and Wade, ; Pavlou and El Sawy, ).…”

Developing community capability for e‐commerce development in rural China: A resource orchestration perspective

“…Leveraging, which includes mobilizing, coordinating, and deploying, aims to make use of capabilities to create value. Despite the rapid development of the resource orchestration perspective, the relevant research is still in its infancy and is dispersed across the different fields of entrepreneurship (Baert et al, ; Chao, Coombs, Qian, & Sirmon, ; Wales, Patel, Parida, & Kreiser, ; Wang, Liang, Zhong, Xue, & Xiao, ), innovation (Carnes, Chirico, Hitt, Dong, & Pisano, ), supply chain management (Gong, Jia, Brown, & Koh, ; Hitt, Xu, & Carnes, ; Ketchen, Wowak, & Craighead, ), and IS (Cui et al, ; Cui & Pan, ; Du, Cui, & Su, ; Liu, Wei, Ke, Wei, & Hua, ; Wang et al, ; Zhou, Zhang, Chen, & Han, ). Such studies focus on either investigating the role of resource orchestration in achieving an outcome or revealing the process of resource orchestration.…”