Information system innovations and supply chain management: Channel relationships and firm performance

This study explores how innovations surrounding supply chain communication systems (SCCS) affect channel relationships and market performance. Drawing on the resource-based view of the firm, the study hypothesizes that certain SCCS innovations can be viewed as firm resources that enhance channel capabilities, which in turn affect a firm’s market performance. The empirical research is based on 184 responses from a survey with U.S. supply chain and logistics managers using structural equation modeling as the analytic method. The results suggest that the effect of applied technological SCCS innovations on channel capabilities is mediated by interfirm systems integration. In contrast, administrative SCCS innovations enhance information exchange and coordination activities directly. Furthermore, the influence of applied technological innovations for SCCS is not strong enough to affect either responsiveness of the partnership or firm performance, whereas administrative innovations for SCCS affect both. Daekwan Kim (dkim@cob.fsu.edu) is an assistant professor of marketing and international business in the College of Business at Florida State University. He received his Ph.D. from Michigan State University. His research interests include the impact of information technology on channel relationships and marketing strategies, role of information technology in global supply chain management, channel relationships, global brand management, and family conglomerates in emerging markets. S. Tamer Cavusgil (cavusgil@msu.edu) is University Distinguished Faculty and the John W. Byington Endowed Chair in Global Marketing, the Eli Broad Graduate School of Management, Michigan State University. His research interests include international marketing strategy, coordination in the global company, and emerging markets. He is the founding editor ofAdvances in International Marketing and a governor of the Academy of Marketing Science. Roger J. Calantone (rogercal@msu.edu) is the Eli Broad Chaired University Professor of Business and is University Distinguished Faculty at Michigan State University. He is program director of the university specialization program in Information Technology Management and is also adjunct professor of economics. His publications and research are mostly in the areas of product design and development processes, decision support systems, and organization process metrics and control.