Research Article
An Empirical Study on the Effect of IT Capability on Supply Chain Performance through Supply Chain Dynamic Capabilities
Dongguk University
Published: January 2014 · Vol. 43, No. 1 · pp. 245-272
Full Text
Abstract
Today, supply chain management in the global business environment is reaching a new turning point. The key issue in the supply chain environment is shifting from competition between individual firms to competition between supply chains, and supply chain performance is determined by how participating firms utilize their resources and capabilities. Dynamic capability refers to a firm's ability to integrate, build, and reconfigure internal and external resources to respond to rapidly changing environments. There is limited empirical research examining the impact on supply chain performance based on dynamic capabilities in supply chain management. Existing research has primarily explained the relationship between supply chain influencing factors and performance based on the resource-based view, innovation diffusion theory, and core competence theory. However, this study aims to empirically analyze the impact of information technology (IT) capability on supply chain performance through supply chain dynamic capabilities in a dynamic supply chain environment. From a dynamic capabilities perspective, this study proposes a new research framework for leading firms and participating firms in the supply chain to rapidly respond to dynamic environmental changes and partner firms' demands, and to promote flexible supply chain management and performance. In particular, this study analyzes the direct effects of IT capability on supply chain performance, introduces supply chain dynamic capability as a mediating variable, and proposes and empirically verifies a research model that can explain the mediating effect between IT capability and supply chain performance. This study collected firm-level data from supply chain managers of 116 companies through surveys and verified the research hypotheses and model using PLS statistical analysis. The empirical analysis results showed that IT capability did not have a direct effect on supply chain performance, but had a significant effect on supply chain performance through supply chain dynamic capabilities. In particular, it was empirically demonstrated that supply chain dynamic capability has a significant mediating effect between IT capability and supply chain performance. The results of this study contribute to the literature by providing academic and practical implications regarding the importance of supply chain dynamic capabilities for improving supply chain performance.
