The effect of information technology on the agility of the supply chain in the Iranian power plant industry

Abstract

Purpose – An agile supply chain (ASC) includes companies that are operationally linked to each other, such as supply, design, manufacturing and distribution centers that respond and react quickly and effectively to change markets. Information systems and technology have a main role in achieving this objective. Therefore, the purpose of this paper is to examine the relationship between information integration, information infrastructure flexibility and the ASC in the Iranian power plant industry (IPPI). Design/methodology/approach – The quantitative method was employed in this study. Survey questionnaires were sent to 87 managers in the IPPI to examine the relationship between information integration, information infrastructure flexibility, and the ASC. Findings – The final results indicated that information sharing and responsibility were strongly related with the ASC; accessibility and connectivity had important relations with the ASC; while the relationships between compatibility and adaptableness as IT flexibility variables and ASC were positive but not significant. Research limitations/implications – This study focussed on the impact of IT on the IPPI specifically companies that manufacture boilers, electronic control tools, turbines, turbine blades, generators and other power plant-related components. Practical implications – A new research model was developed to assess the impact of the interrelationships among IT capabilities and the ASC and results should assist managers as well as academicians. Originality/value – An investigation was carried out through this study based on the current situation in IPPI to empirically examine and evaluate the effect of IT integration and flexibility on ASC. Besides, a very limited number of studies have been done on the implementation of information technology in the IPPI.

Infrastructure framework and manufacturing supply chain agility: the role of delivery dependability and time to market

“…According to Wu et al (2006), firms that have higher levels of SC capabilities such as agile SC, information sharing, coordination and integration have a potential and significant positive impact on improving and enhancing the firm's market share and financial performance. Firms with higher levels of SCA will better enable the focal firm to adapt to changes in uncertain and dynamic markets (Bargshady et al, 2016;Singh, 2015;Qrunfleh and Tarafdar, 2013;Ou et al, 2010). The researcher thus hypothesises in H3 that the ability of the SCA to respond effectively to changes and customers' demand has a significant positive impact on firm performance.…”

“…According to Bezuidenhout (2016) and Gunasekaran et al (2008), SCA refers to the ability of SCs to effectively interact and respond quickly to market changes and customer demand impact the firms. However, SCA can improve supplier performance, eliminate wasteful time and efforts, share resources and capabilities and reduce TM (Giannakis and Louis, 2016;Matawale et al, 2016a;Fayezi and Zomorrodi, 2015;Sharma and Bhat, 2014;Banomyong and Supatn, 2011;Ou et al, 2010), thus increasing the level of customer satisfaction and responsiveness (Bargshady et al, 2016;Oloruntoba and Kovacs, 2015;Collins et al, 2010). Hence, the researcher hypothesised in H1 that availability of a well-structured IF with main elements will improve and enhance the firm's supply chain agility.…”

“…To asses SCA and efficiency, performance evaluation of the entire SC is of extreme importance (Banomyong and Supatn, 2011). SCA is defined by Bargshady et al (2016) because SC: [. .…”

“…Creating a well-established infrastructure may achieve and implement a JIT technique by shipping the right products, at the right time, to the right place, in the right quantity, in the right condition and may use several routes for transportation mode(s) based on quality, dependability, speed and reliability to achieve lowest cost strategy (Borggstrom and Hertz, 2011;Cook et al, 2011;Qi et al, 2009). Therefore, the main aim of agile SC is being flexible by adapting quickly and effectively to rapidly changing customer wants and needs (Bargshady et al 2016;Matawale et al, 2016b;L'Hermitte et al, 2016). According to Goldsby et al (2006), an agile strategy uses a "wait-and-see" technique to demand, not committing to products until demand becomes known.…”

“…Globalisation and intensified competition forced most firms seeking to improve their performances to re-examine not only how they get products into their customer's hands, but how they can respond quickly to customer's needs and wants; therefore, supply chain agility (SCA) has become an essential prerequisite for staying competitive in the global race and in the current dynamic markets for enhancing the firm's performance and profitability (Bargshady et al, 2016;Singh, 2015;Mehralian et al, 2015;Sharma and Bhat, 2014).…”