The impact of IT application on supply chain learning and service performance
| DOI | https://doi.org/10.1108/IMDS-10-2018-0476 |
| Published date | 08 November 2019 |
| Date | 08 November 2019 |
| Pages | 1-20 |
| Author | Baofeng Huo,Muhammad Zia Ul Haq,Minhao Gu |
| 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 |
The impact of IT application
on supply chain learning and
service performance
Baofeng Huo and Muhammad Zia Ul Haq
School of Management,
Zhejiang University, Hangzhou, China, and
Minhao Gu
College of Management and Economics,
Tianjin University, Tianjin, China
Abstract
Purpose –Despite the recognition that supply chain (SC) learning is important for competitive advantage,
little is known how to enable such learning. The purpose of this paper is to examine the effects of information
technology (IT) application on different types of SC learning (i.e. internal, customer and supplier learning) and
service performance.
Design/methodology/approach –This study applies structural equation modeling to test the conceptual
model based on data collected from 213 manufacturing firms in China.
Findings –Although strategic application has a direct and negative relationship with all three dimensions of
SC learning, it indirectly and positively improves SC learning through tactical and operational application.
The authors observe that tactical application is positively related to all three dimensions of SC learning, while
operational application improves internal and customer learning only. The authors also notice that internal
and customer learning are positively related to service performance.
Research limitations/implications –This study classifies IT application into strategic, tactical and
operational dimensions, which may not adequately cover the entire set of IT application portfolio.
Practical implications –The findings suggest managers to use corresponding IT application to improve
SC learning and service performance.
Originality/value –This study provides a new framework to understand the relationships between IT
application, SC learning and service performance.
Keywords IT application, Service performance, Supply chain learning
Paper type Research paper
1. Introduction
Supply chain (SC) learning is a process of the focal firm to acquire, assimilate and exploit
information and knowledge across internal functions as well as from its key suppliers
and key customers. It has become a key component to improve the efficiency and
effectiveness of supply chain management (SCM) (Bessant et al., 2003; Flint et al., 2008;
Spekman et al., 2002; Willis et al., 2016). Scholars believe that learning helps firms to tailor
their service offerings according to the specific needs of customers and leads to enhanced
service ability (Brewer and Speh, 2000; Stank et al., 2001; Zhu et al., 2018). It also leads to
resource duplication reduction, better relevance to customer needs, flexible
accommodation to changes and prompt customer demand response (Brewer and Speh,
2000; Stank et al., 2001; Wilson and Frimpong, 2004). However, previous studies paid
scarce attention to examine the effect of SC learning on service performance. This leads to
the first research question:
RQ1. Whether SC learning can improve service performance? Industrial Management & Data
Systems
Vol. 120 No. 1, 2020
pp. 1-20
© Emerald PublishingLimited
0263-5577
DOI 10.1108/IMDS-10-2018-0476
Received 31 October 2018
Revised 25 January 2019
10 February 2019
Accepted 21 February 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 National Natural Science Foundation of China (Nos 71525005 and
71821002).
1
Impact of IT
application
Due to the importance of SC learning, many firms are adopting different approaches to
improve it. For instance, Spekman et al. (2002) identified that trust, communication,
decision-makingstyle, win-win orientationsand culture are necessary conditions to enable SC
learning. Similarly, Zhu et al. (2018) proposed that SC integration leads to SC learning. Loke
et al. (2012) found that quality management practices have an impact on SC learning. In this
digitalized age, information technology (IT) spending has increased significantly and firms
worldwide are employing IT to facilitate knowledge acquisition and utilization (Kane et al.,
2014; Tippinsand Sohi, 2003; Zhou and Benton,2007). For instance, Starbucks employedIT to
engage customers in the development of new flavors and drinks while Caterpillar used IT to
share information and knowledge across its internal functions (Lam et al., 2016). Similarly,
Tesco enabled IT application to learn from business partners (Park et al., 2015). Despite the
fact that IT application is at the topagenda of many firms, its role in improving SC learning
remains unclear in literature (Lyles et al., 2008). A comprehensive literature review by Lyles
et al. (2008) manifests that no empirical study exists, which exclusively examines the
relationship between a wide range of IT applications and SC learning.
Whilst, there are some studies exploring the relationship between IT application and
inter-organizational learning, they are either based on qualitative case studies or on
computer simulations (Kane and Alavi, 2007; Park et al., 2015; Scott, 2000), others focus on
the role of one specific IT application in information sharing (Kim et al., 2016). Although
technology acceptance model (TAM) has gained popularity in the literature, its focus is
limited on how firm accepts or implements the specific technology rather than how these
technologies influence various SC practices (Autry et al., 2010; Patterson et al., 2004;
Venkatesh and Davis, 2000). These arguments raise another research question:
RQ2. How do different IT applications influence SC learning?
Therefore, this situation calls for more empirical research to unpack the mechanisms of how
IT application influences SC learning (Stank et al., 2011; Thöni and Tjoa, 2017).
The objective of this study is to add to IT and SC learning literature by investigating the
links between a wide range of IT applications and dimensions of SC learning. More
specifically, by classifying IT application into strategic, tactical and operational dimensions,
this study looks into the relationships among different dimensions and the individual role of
each set of IT application in stimulating SC learning. This study also investigates how
individual dimensions of SC learning may influence service performance. It not only offers a
theoretical richness to IT application and SCM domains but also furnishes new insights for
practitioners to achieve service performance.
The organization of this paper is as follows: first, we offer a theoretical background and
propose hypotheses. Second, we illustrate the methodology and provide the results. Third,
we discuss empirical findings along with theoretical and managerial implications. Finally,
we draw conclusions and provide limitations.
2. Theoretical background and research hypotheses
2.1 IT application
IT application refers to various types of information tools, techniques and systems used for
SCM practices such as electronic transactions and communication within the firm and
between firms (Autry et al., 2010; Chen and Paulraj, 2004; Xu et al., 2014). The importance of
IT application is well documented in SCM research literature (Dehning et al., 2007; McAfee,
2002; Thöni and Tjoa, 2017; Zhou et al., 2014). However, the extant body of research lacks
consensus on widely accepted dimensions of IT application (Tippins and Sohi, 2003; Zhang
et al., 2011). To a large extent, scholars treated IT application as a single construct (Fawcett
et al., 2011; Persona et al., 2007; Tan et al., 2017). Some studies divided it into functional and
integrative levels (Patterson et al., 2004), while others categorized IT application into
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IMDS
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