The Moderation Effect of Information Security Orientation on the Relationship Between Information Technology Enablement and Supply Chains Agility Performance

Abstract

The current study evaluates agility performance of information technology (IT) enabled supply chain using the lens of information security orientation (ISO). More specifically, the moderation effect of ISO on the link between IT-enablement (ITE) and supply chain agility performance is investigated. A novel measurement scale is developed to evaluate the ISO construct. The study answers two main questions: First, how does ITE affect supply chain agility performance; and second, does ISO moderate this relationship and how? An empirical analysis is conducted using data collected from IT managers, supply chain managers, plant managers, and logistics’ managers from multiple industries. After controlling for the effect of firm size, relationship age, relationship size, and industry type, the study finds that ITE is positively associated with supply chain agility performance, and ISO is a significant moderator to this relationship. Supply chain organizations that implement high levels of ISO can realize higher agility performance from ITE than their, otherwise, counterparts. The newly developed ISO scale can support managers interested in evaluating the level of ISO adopted by their organizations. The article discusses several managerial implications of our findings, including findings related to the control variables.