The performance of contingencies of supply chain information integration: The roles of product and market complexity

Abstract

Abstract Although information integration is generally considered beneficial for supply chain management, the performance of supply chain information integration is found with mixed results in both practices and the extant literature. Based on the organizational information processing theory, this study aims to show how the contextual factors pertaining to product and market complexity moderate the relationship of supply chain information integration with financial and operational performance outcomes. Using survey data collected from 188 wholesale trading firms, we found that the extent to which supply chain information integration has a positive impact on business performance is contingent on the level of product and market complexity. Specifically, supply chain information integration facilitates greater performance improvements when it serves less complex products or is operated under a highly complex market environment. The study findings provide insights to managers and advance theoretical development by providing empirical evidence that supply chain information integration is helpful for mitigating uncertainties in supply chain management and the performance contingencies of such integration on the two contextual factors.