The Effect of IT Integration on Supply Chain Agility Towards Market Performance (A Proposed Study)

Abstract

Aim/Purpose: An important objective of any firm is escalation of its performance and the achievement of competitive advantages. Supply chain agility plays a prominent role to enhance the level of firm’s performance. Moreover, information technology (IT) plays a foundational role in supply chain management practices. Hence, this study proposes the relationship between IT integration as the competency of IT and firm’s market performance both directly and through mediating role of supply chain agility. Background: Many studies have been done to date on the impact of supply chain agility on overall firm’s performance. However, the effect of an agile supply chain on firm’s market performance per se needs to be studied. Furthermore, there is a gap in the literature about the effect of IT competency such as IT integration on firm’s market performance both directly and through mediating role of supply chain agility. Recommendation for Researchers: The first direction this study gives to researchers is to consider the different factors which have significant effect on the agility of supply chain, particularly the IT related ones. The second direction is about the study on the effect of IT competencies and supply chain agility on each category of firm’s performance separately instead of considering it as a one construct. Impact on Society: Although this is a conceptual study, it can highlight the importance of IT competency not only in our daily life, but also in our businesses and industries. Future Research: This study only proposes some relationships based on theory and literature. Future researchers can test these proposed relationships in different contexts and compare the results. Furthermore, this study proposes the relationships for large manufacturing sector in developing countries. The model could be tested for SMEs as well. In addition, the proposed theoretical model in this study might be tested in both developing as well as developed countries to compare the results which will be contributed to the body of knowledge.