Information sharing, coordination and supply chain performance. The moderating effect of demand uncertainty
| Pages | 1046-1071 |
| Date | 10 June 2019 |
| DOI | https://doi.org/10.1108/IMDS-10-2018-0453 |
| Published date | 10 June 2019 |
| Author | Siyu Li,Xiling Cui,Baofeng Huo,Xiande Zhao |
| Subject Matter | Information & knowledge management,Information systems,Data management systems,Knowledge management,Knowledge sharing,Management science & operations,Supply chain management,Supply chain information systems,Logistics,Quality management/systems |
Information sharing, coordination
and supply chain performance
The moderating effect of demand uncertainty
Siyu Li
School of Management, Zhejiang University, Hangzhou, China and
Department of Management and Marketing,
Hong Kong Polytechnic University, Kowloon, Hong Kong
Xiling Cui
Department of Business Administration,
Hong Kong Shue Yan University, Hong Kong, China
Baofeng Huo
College of Management and Economics, Tianjin University, Tianjin, China, and
Xiande Zhao
China Europe International Business School, Shanghai, China
Abstract
Purpose –The purpose of this paper is to explore the effects that customer structured and unstructured
information sharing (IS) can have on customer operational and strategic coordination and on supply chain
performance (SCP). In addition, the study examines how customer IS influences customer coordination under
various levels of demand uncertainty (DU).
Design/methodology/approach –The conceptual model for this study is designed on the basis of
information-processing theory (IPT). Using data collected from 622 manufacturers in mainland China and
Taiwan, the theoretical model is tested using the structural equation modeling method.
Findings –The authors find that both customer structured IS and unstructured IS are positively associated
with customer strategic coordination. Customer structured IS increases customer operational coordination,
but customer unstructured IS does not. DU positively moderates the relations between customer unstructured
IS and strategic coordination, and between customer structured IS and operational coordination. Also, DU
negatively moderates the relationship between customer structured IS and strategic coordination. Customer
strategic coordination is positively related to SCP and to operational coordination. Customer operational
coordination has no significant impact on SCP.
Originality/value –This study deepens our understandingof customer IS by distinguishing between customer
structured and unstructured IS. The study also provides a greater understanding of customer coordination by
making a distinction between the customer strategic and the operational coordination. The findings extend the
empirical application of IPT. In addition, this study’s findings direct SC managers to apply varied customer IS
practices that can enhance specific kinds of customer coordination activities, thereby enabling improved SCP.
Keywords Supply chain performance, Demand uncertainty, Customer coordination,
Customer information sharing
Paper type Research paper
1. Introduction
In the currentmarket environment, competition occursmore between supplychains (SCs) than
between firms (Sangari et al., 2015; Wu et al., 2014). Firms are uniting in the form of SCs so they
can better respond to market changes (Cigolini et al., 2004; Wu et al.,2014).Inrecentyears,
researchers have paid increasing attention to the challenge of enhancing SC performance (SCP)
(Chen et al.,2013; Kahn et al., 2006; Lin et al., 2010; Seo et al., 2014). SCP reflects the operational
Industrial Management & Data
Systems
Vol. 119 No. 5, 2019
pp. 1046-1071
© Emerald PublishingLimited
0263-5577
DOI 10.1108/IMDS-10-2018-0453
Received 16 October 2018
Revised 7 February 2019
Accepted 5 March 2019
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/0263-5577.htm
This research was supported by the National Natural Science Foundation of China (No. 71525005), and
the National Natural Science Foundation of China Innovation Group (No. 71821002).
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IMDS
119,5
performance of the entire SC (Huo et al., 2014). However, the reasons why some SCs perform
better than others are still not adequately understood (Sangari et al., 2015). In this study, we
seek to shed new light on SCP and its antecedents. We summarize the studies on this topic in
Table I. As the table shows, SC information sharing (SCIS) (Wu et al., 2014; Zhao et al., 2002)
and SC coordination (SCC) (Abdallah et al., 2014; Alam et al., 2014; Chen et al., 2013; Seo et al.,
2014; Wu et al., 2014) are commonly considered to be antecedents of SCP. However, studies
have failed to answer an important set of questions. How do various types of SCIS and SCC
practices function differently? What are the relationships between these practices and SCP?
To answer these questions and enhance our understanding of SCP antecedents, this study
considers SCIS and SCC simultaneously in one theoretical model. Obviously, if firms are to
manage their SCs better, they need to coordinate flows of both information and physical
products (Frohlich and Westbrook, 2001). SCIS stresses information flow, andSCC is mainly
focused on physical flow. To achieve better performance, the information flow must be
efficiently transferred to the physical flow (Prajogo and Olhager, 2012). Therefore, this study
deems SCIS as the antecedent of SCC and treats SCP as a consequence. Many studies have
supported this logic (Chang et al., 2013; Prajogo and Olhager, 2012; Wu et al., 2014).
As information is one of the most critical resources for firms, effectively obtaining and
processing relevant information is essential for maintaining a competitive position. Therefore,
SCIS is a hot topic in the operational management (OM) literature (Huo et al., 2014; Zhou and
Benton, 2007). Determining how to effectively exchange information with customers is a
challenge for most firms, and the ways they address this challenge affect their competitiveness.
In this study, we focus on information sharing (IS) between manufacturers and
customers. Most studies have treated SCIS as a complex concept involving many varied
components. For instance, some studies have considered different kinds of IS targets (Carr
and Hale, 2007; Huo et al., 2014; Sezen, 2008). Other studies have emphasized analysis of IS
content and quality (Li et al., 2014; Zhou and Benton, 2007). Lee, C.-H. and Ha, B.-C. (2018)
Author (Year) Antecedents Major conclusions
Zhao et al. (2002) Information sharing; order
coordination
Information sharing and order coordination
significantly influence SCP
Lin et al. (2010) Market orientation; resource
orientation; value co-creation;
embedding operant resource; resource
integration; value constellations
Market orientation, value co-creation and
value constellations enhance SCP
Wu et al. (2014) Information sharing; collaboration Both information sharing and collaboration
facilitate SCP
Seo et al. (2014) Supply chain integration (SCI);
innovativeness
Innovativeness directly improves SCP. This
effect disappears when considering SCI as
the mediator
Sangari et al. (2015) Knowledge management processes Knowledge management processes enhance
SCP. This effect “is positively moderated by
IT/IS support and supply chain integration”
(p. 603)
Qrunfleh and
Tarafdar (2014)
Lean supply chain strategy; agile
supply chain strategy
Lean and agile SC strategies are both
positively associated with SCP. These two
effects are separately moderated by IS for
efficiency and for flexibility strategy
Chen et al. (2013) Hospital-supplier integration Hospital-supplier integration increases SCP
Alam et al. (2014) Logistics integration Logistics integration improves SCP
Abdallah et al. (2014) Supplier integration; internal
integration; customer integration;
information sharing; postponement
Internal integration, postponement and
customer integration facilitate SC
effectiveness performance
Table I.
Studies on SCP
antecedents
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Information
sharing,
coordination
and SCP
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