The Relationship of Information Systems, Supply Chain Management With Organisational Performance

Reid, Iain and Argyropoulou, M. (2014) The Relationship of Information Systems, Supply Chain Management With Organisational Performance. In: Logistics Research Network (LRN) conference, 3-5 September 2014, Huddersfield, UK. (Submitted)

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Abstract

Purpose
In today’s world, Supply Chain Management (SCM) is a key strategic factor for
increasing organisational effectiveness and for better realisation of organisational
goals such as competitiveness, better customer care and increased profitability
(Ganesh Kumar and Nambirajan, 2013). As such, research interest has focused on
supply chain practices with SMEs and large organisations in terms of supply chain
information systems (SCIS) and organisational performance.
Research Approach
This study aims at the exploration of the statistical relationship between (SCIS)
Effectiveness and Organisational Performance. The findings from a survey involving
168 IT managers show a strong correlation between SCIS and non-financial
Organisational Performance across a cohort of Small Medium Enterprises (SMEs) and
large organisations.
Findings and Originality
These findings are further confirmed by a recent publication from Ganesh Kumar and
Nambirajan, (2013). This study identified the items used by researchers for the
measurement of both constructs. Exploratory Factor Analysis was employed as there
was no theoretical basis to specify a priori the number and patterns of common
factors (Hurley et al., 1997) especially for the extraction of factors measuring the
non-financial performance of a firm.
Research Impact
The analyses also revealed that companies with a high implementation degree show
a better supply chain performance. Furthermore, the results show that this paper
contributes to the SCM field by providing scales for financial and non-financial
performance constructs, and by exploring how those are improved by the adoption
of specific Supply Chain Information Systems.
Practical Impact
The purpose of this study aims at the exploration of the statistical relationship
between Supply Chain Information Systems’ (SCIS) Effectiveness and Organisational
Performance, when this is measured by financial and non-financial variables and the
impacts on SMEs performance.