Contribution of Information Sharing to Supply Chain Performance in Developing Country: Empirical Evidence from Manufacturing Plants in Vietnam
Abstract
Purpose: This study empirically investigates effect of information technology (IT) link on supply chain performance through information sharing, supplier development, and knowledge absorption from customers.
Methodology/Approach: The data sample including 135 Vietnamese manufacturing plants was collected through a paper-based questionnaire survey. Statistical techniques such as correlation and regression analysis are applied for hypotheses testing.
Findings: It was shown that supply chain performs better when focal firms invest in supplier development and knowledge absorption. Those activities are strengthened by developing IT link and information sharing with suppliers and by customers.
Research Limitation/Implication: Sample size is relatively small due to limited time and resources; subjective measurement of constructs are limitations that can be addressed in future research.
Originality/Value of paper: This paper fills the gap in literature related with application of supply chain information in developing countries. It indicated that IT links should be regarded as the platform for information sharing among supply chain partners which lead to higher supply chain performance.
References
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Chen, L., Ellis, S. and Holsapple, C., 2018. A knowledge management perspective of supplier development: Evidence from supply chain scholars and consultants. Knowledge and Process Management, [e-journal] 25(4), pp.247-257. DOI: 10.1002/kpm.1566.
Fawcett, S.E., Croom, S., Osterhaus, P., Magnan, G.M., Brau, J.C. and McCarter, M.W., 2007. Information sharing and supply chain performance: The role of connectivity and willingness. Supply Chain Management: An International Journal, [e-journal] 12(5), pp.358-368. DOI: 10.1108/13598540710776935.
Glavee-Geo, R., 2019. Does supplier development lead to supplier satisfaction and relationship continuation? Journal of Purchasing and Supply Management, [e-journal] 25(3), pp.1-14. DOI: 10.1016/j.pursup.2019.05.002.
Grover, V. and Kohli, R., 2012. Cocreating IT value: New capabilities and metrics for multifirm environments. MIS Quarterly, [e-journal] 36(1), pp.225-232. DOI: 10.2307/41410415.
Hahn, C.K., Watts, C.A. and Kim, K.Y., 1990. The supplier development program: A conceptual model. Journal of Purchasing and Materials Management, [e-journal] 26(2), pp.2-7. DOI: 10.1111/j.1745-493X.1990.tb00498.x.
Hoek, R.v., 2020. Research opportunities for a more resilient post-COVID-19 supply chain – closing the gap between research findings and industry practice. International Journal of Operations & Production Management, [e-journal] 40(4), pp.341-355. DOI: 10.1108/ijopm-03-2020-0165.
Huo, B., Haq, M.Z.U. and Gu, M., 2020. The impact of information sharing on supply chain learning and flexibility performance. International Journal of Production Research, [e-journal] 59(5), pp.1411-1434. DOI: 10.1080/00207543.2020.1824082.
Koçoğlu, İ., İmamoğlu, S.Z., İnce, H. and Keskin, H., 2011. The effect of supply chain integration on information sharing: Enhancing the supply chain performance. Procedia - Social and Behavioral Sciences, [e-journal] 24, pp.1630-1649. DOI: 10.1016/j.sbspro.2011.09.016.
Krause, D.R., Handfield, R.B. and Tyler, B.B., 2007. The relationships between supplier development, commitment, social capital accumulation and performance improvement. Journal of Operations Management, [e-journal] 25(2), pp.528-545. DOI: 10.1016/j.jom.2006.05.007.
Lee, A.B.S., Chan, F.T.S. and Pu, X., 2018. Impact of supplier development on supplier’s performance. Industrial Management & Data Systems, [e-journal] 118(6), pp.1192-1208. DOI: 10.1108/imds-05-2017-0229.
Li, S. and Lin, B., 2006. Accessing information sharing and information quality in supply chain management. Decision Support Systems, [e-journal] 42(3), pp.1641-1656. DOI: 10.1016/j.dss.2006.02.011.
Lotfi, Z., Mukhtar, M., Sahran, S. and Zadeh, A.T., 2013. Information sharing in supply chain management. Procedia Technology, [e-journal] 11, pp.298-304. DOI: 10.1016/j.protcy.2013.12.194.
Luo, C., Mallick, D.N. and Schroeder, R.G., 2010. Collaborative product development: Exploring the role of internal coordination capability in supplier involvement. European Journal of Innovation Management, [e-journal] 13(2), pp.244-266. DOI: 10.1108/14601061011040276.
Maskey, R., Fei, J. and Nguyen, H.-O., 2019. Critical factors affecting information sharing in supply chains. Production Planning & Control, [e-journal] 31(7), pp.557-574. DOI: 10.1080/09537287.2019.1660925.
Modi, S.B. and Mabert, V.A., 2007. Supplier development: Improving supplier performance through knowledge transfer. Journal of Operations Management, [e-journal] 25(1), pp.42-64. DOI: 10.1016/j.jom.2006.02.001.
Nandi, M.L., Nandi, S., Moya, H. and Kaynak, H., 2020. Blockchain technology-enabled supply chain systems and supply chain performance: A resource-based view. Supply Chain Management: An International Journal, [e-journal] 25(6), pp.841-862. DOI: 10.1108/scm-12-2019-0444.
Nguyen, H. and Harrison, N., 2018. Leveraging customer knowledge to enhance process innovation. Business Process Management Journal, [e-journal] 25(2), pp.307-322. DOI: 10.1108/bpmj-03-2017-0076.
Paulraj, A. and Chen, I.J., 2007. Strategic buyer-supplier relationships, information technology and external logistics integration. The Journal of Supply Chain Management, [e-journal] 43(2), pp.2-14. DOI: 10.1111/j.1745-493X.2007.00027.x.
Pham, H.C., Nguyen, T.-T., McDonald, S. and Tran-Kieu, N.Q., 2019. Information sharing in logistics firms: An exploratory study of the Vietnamese logistics sector. The Asian Journal of Shipping and Logistics, [e-journal] 35(2), pp.87-95. DOI: 10.1016/j.ajsl.2019.06.001.
Phan, A.C., Nguyen, H.A., Trieu, P.D., Nguyen, H.T. and Matsui, Y., 2019. Impact of supply chain quality management practices on operational performance: Empirical evidence from manufacturing companies in Vietnam. Supply Chain Management: An International Journal, [e-journal] 24(6), pp.855-871. DOI: 10.1108/scm-12-2018-0445.
Posey, C. and Bari, A., 2009. Information sharing and supply chain performance: Understanding complexity, compatibility, and processing. International Journal of Information Systems and Supply Chain Management, [e-journal] 2(3), pp.67-76. DOI: 10.4018/jisscm.2009070105.
Prajogo, D. and Olhager, J., 2012. Supply chain integration and performance: The effects of long-term relationships, information technology and sharing, and logistics integration. International Journal of Production Economics, [e-journal] 135(1), pp.514-522. DOI: 10.1016/j.ijpe.2011.09.001.
Roberts, N. and Grover, V., 2014. Leveraging information technology infrastructure to facilitate a firm’s customer agility and competitive activity: An empirical investigation. Journal of Management Information Systems, [e-journal] 28(4), pp.231-270. DOI: 10.2753/mis0742-1222280409.
Ross, D.F., 2015. Information technology and supply chain management. In: D.F. Ross ed. Distribution Planning and Control. New York, NY: Springer Link. pp. 827-886.
Salojärvi, H., Sainio, L.-M. and Tarkiainen, A., 2010. Organizational factors enhancing customer knowledge utilization in the management of key account relationships. Industrial Marketing Management, [e-journal] 39(8), pp.1395-1402. DOI: 10.1016/j.indmarman.2010.04.005.
Sánchez-Rodríguez, C., Hemsworth, D. and Martínez-Lorente, Á.R., 2005. The effect of supplier development initiatives on purchasing performance: A structural model. Supply Chain Management: An International Journal, [e-journal] 10(4), pp.289-301. DOI: 10.1108/13598540510612767.
Sarkis, J., 2020. Supply chain sustainability: Learning from the COVID-19 pandemic. International Journal of Operations & Production Management, [e-journal] 41(1), pp.63-73. DOI: 10.1108/ijopm-08-2020-0568.
Sezen, B., 2008. Relative effects of design, integration and information sharing on supply chain performance. Supply Chain Management: An International Journal, [e-journal] 13(3), pp.233-240. DOI: 10.1108/13598540810871271.
Shahed, K.S., Azeem, A., Ali, S.M. and Moktadir, M.A., 2021. A supply chain disruption risk mitigation model to manage COVID-19 pandemic risk. Environmental Science and Pollution Research, [e-journal], pp. 1-16. DOI: 10.1007/s11356-020-12289-4.
Shee, H., Miah, S.J., Fairfield, L. and Pujawan, N., 2018. The impact of cloud-enabled process integration on supply chain performance and firm sustainability: The moderating role of top management. Supply Chain Management: An International Journal, [e-journal] 23(6), pp.500-517. DOI: 10.1108/scm-09-2017-0309.
Shen, Z.M. and Sun, Y., 2021. Strengthening supply chain resilience during COVID‐19: A case study of JD.com. Journal of Operations Management, [e-journal] 69(3), pp.359-383. DOI: 10.1002/joom.1161.
Shukor, A.A.A., Newaz, M.S., Rahman, M.K. and Taha, A.Z., 2020. Supply chain integration and its impact on supply chain agility and organizational flexibility in manufacturing firms. International Journal of Emerging Markets, [e-journal] 16(8), pp.1721-1744. DOI: 10.1108/ijoem-04-2020-0418.
Srimarut, T. and Mekhum, W., 2020. The impact of compatibility on the process integration of the supply chain in improving firm performance: The mediating effect of information technology capability. International Journal of Supply Chain Management, 9(1), pp.155-167.
Storey, C. and Larbig, C., 2017. Absorbing customer knowledge: How customer involvement enables service design success. Journal of Service Research, [e-journal] 21(1), pp.101-118. DOI: 10.1177/1094670517712613.
Tran, P.N.T., Gorton, M. and Lemke, F., 2021. When supplier development initiatives fail: Identifying the causes of opportunism and unexpected outcomes. Journal of Business Research, [e-journal] 127, pp.277-289. DOI: 10.1016/j.jbusres.2021.01.009.
Tripathy, S., Aich, S., Chakraborty, A. and Lee, G.M., 2016. Information technology is an enabling factor affecting supply chain performance in Indian SMEs. Journal of Modelling in Management, [e-journal] 11(1), pp.269-287. DOI: 10.1108/jm2-01-2014-0004.
Tukamuhabwa, B., Stevenson, M. and Busby, J., 2017. Supply chain resilience in a developing country context: A case study on the interconnectedness of threats, strategies and outcomes. Supply Chain Management: An International Journal, [e-journal] 22(6), pp.486-505. DOI: 10.1108/scm-02-2017-0059.
Vanpoucke, E., Vereecke, A. and Muylle, S., 2017. Leveraging the impact of supply chain integration through information technology. International Journal of Operations & Production Management, [e-journal] 37(4), pp.510-530. DOI: 10.1108/ijopm-07-2015-0441.
Vijayasarathy, L.R., 2010. An investigation of moderators of the link between technology use in the supply chain and supply chain performance. Information & Management, [e-journal] 47(7-8), pp.364-371. DOI: 10.1016/j.im.2010.08.004.
Ye, F. and Wang, Z., 2013. Effects of information technology alignment and information sharing on supply chain operational performance. Computers & Industrial Engineering, [e-journal] 65(3), pp.370-377. DOI: 10.1016/j.cie.2013.03.012.
Carr, A.S. and Kaynak, H., 2007. Communication methods, information sharing, supplier development and performance. International Journal of Operations & Production Management, [e-journal] 27(4), pp.346-370. DOI: 10.1108/01443570710736958.
Chen, L., Ellis, S. and Holsapple, C., 2018. A knowledge management perspective of supplier development: Evidence from supply chain scholars and consultants. Knowledge and Process Management, [e-journal] 25(4), pp.247-257. DOI: 10.1002/kpm.1566.
Fawcett, S.E., Croom, S., Osterhaus, P., Magnan, G.M., Brau, J.C. and McCarter, M.W., 2007. Information sharing and supply chain performance: The role of connectivity and willingness. Supply Chain Management: An International Journal, [e-journal] 12(5), pp.358-368. DOI: 10.1108/13598540710776935.
Glavee-Geo, R., 2019. Does supplier development lead to supplier satisfaction and relationship continuation? Journal of Purchasing and Supply Management, [e-journal] 25(3), pp.1-14. DOI: 10.1016/j.pursup.2019.05.002.
Grover, V. and Kohli, R., 2012. Cocreating IT value: New capabilities and metrics for multifirm environments. MIS Quarterly, [e-journal] 36(1), pp.225-232. DOI: 10.2307/41410415.
Hahn, C.K., Watts, C.A. and Kim, K.Y., 1990. The supplier development program: A conceptual model. Journal of Purchasing and Materials Management, [e-journal] 26(2), pp.2-7. DOI: 10.1111/j.1745-493X.1990.tb00498.x.
Hoek, R.v., 2020. Research opportunities for a more resilient post-COVID-19 supply chain – closing the gap between research findings and industry practice. International Journal of Operations & Production Management, [e-journal] 40(4), pp.341-355. DOI: 10.1108/ijopm-03-2020-0165.
Huo, B., Haq, M.Z.U. and Gu, M., 2020. The impact of information sharing on supply chain learning and flexibility performance. International Journal of Production Research, [e-journal] 59(5), pp.1411-1434. DOI: 10.1080/00207543.2020.1824082.
Koçoğlu, İ., İmamoğlu, S.Z., İnce, H. and Keskin, H., 2011. The effect of supply chain integration on information sharing: Enhancing the supply chain performance. Procedia - Social and Behavioral Sciences, [e-journal] 24, pp.1630-1649. DOI: 10.1016/j.sbspro.2011.09.016.
Krause, D.R., Handfield, R.B. and Tyler, B.B., 2007. The relationships between supplier development, commitment, social capital accumulation and performance improvement. Journal of Operations Management, [e-journal] 25(2), pp.528-545. DOI: 10.1016/j.jom.2006.05.007.
Lee, A.B.S., Chan, F.T.S. and Pu, X., 2018. Impact of supplier development on supplier’s performance. Industrial Management & Data Systems, [e-journal] 118(6), pp.1192-1208. DOI: 10.1108/imds-05-2017-0229.
Li, S. and Lin, B., 2006. Accessing information sharing and information quality in supply chain management. Decision Support Systems, [e-journal] 42(3), pp.1641-1656. DOI: 10.1016/j.dss.2006.02.011.
Lotfi, Z., Mukhtar, M., Sahran, S. and Zadeh, A.T., 2013. Information sharing in supply chain management. Procedia Technology, [e-journal] 11, pp.298-304. DOI: 10.1016/j.protcy.2013.12.194.
Luo, C., Mallick, D.N. and Schroeder, R.G., 2010. Collaborative product development: Exploring the role of internal coordination capability in supplier involvement. European Journal of Innovation Management, [e-journal] 13(2), pp.244-266. DOI: 10.1108/14601061011040276.
Maskey, R., Fei, J. and Nguyen, H.-O., 2019. Critical factors affecting information sharing in supply chains. Production Planning & Control, [e-journal] 31(7), pp.557-574. DOI: 10.1080/09537287.2019.1660925.
Modi, S.B. and Mabert, V.A., 2007. Supplier development: Improving supplier performance through knowledge transfer. Journal of Operations Management, [e-journal] 25(1), pp.42-64. DOI: 10.1016/j.jom.2006.02.001.
Nandi, M.L., Nandi, S., Moya, H. and Kaynak, H., 2020. Blockchain technology-enabled supply chain systems and supply chain performance: A resource-based view. Supply Chain Management: An International Journal, [e-journal] 25(6), pp.841-862. DOI: 10.1108/scm-12-2019-0444.
Nguyen, H. and Harrison, N., 2018. Leveraging customer knowledge to enhance process innovation. Business Process Management Journal, [e-journal] 25(2), pp.307-322. DOI: 10.1108/bpmj-03-2017-0076.
Paulraj, A. and Chen, I.J., 2007. Strategic buyer-supplier relationships, information technology and external logistics integration. The Journal of Supply Chain Management, [e-journal] 43(2), pp.2-14. DOI: 10.1111/j.1745-493X.2007.00027.x.
Pham, H.C., Nguyen, T.-T., McDonald, S. and Tran-Kieu, N.Q., 2019. Information sharing in logistics firms: An exploratory study of the Vietnamese logistics sector. The Asian Journal of Shipping and Logistics, [e-journal] 35(2), pp.87-95. DOI: 10.1016/j.ajsl.2019.06.001.
Phan, A.C., Nguyen, H.A., Trieu, P.D., Nguyen, H.T. and Matsui, Y., 2019. Impact of supply chain quality management practices on operational performance: Empirical evidence from manufacturing companies in Vietnam. Supply Chain Management: An International Journal, [e-journal] 24(6), pp.855-871. DOI: 10.1108/scm-12-2018-0445.
Posey, C. and Bari, A., 2009. Information sharing and supply chain performance: Understanding complexity, compatibility, and processing. International Journal of Information Systems and Supply Chain Management, [e-journal] 2(3), pp.67-76. DOI: 10.4018/jisscm.2009070105.
Prajogo, D. and Olhager, J., 2012. Supply chain integration and performance: The effects of long-term relationships, information technology and sharing, and logistics integration. International Journal of Production Economics, [e-journal] 135(1), pp.514-522. DOI: 10.1016/j.ijpe.2011.09.001.
Roberts, N. and Grover, V., 2014. Leveraging information technology infrastructure to facilitate a firm’s customer agility and competitive activity: An empirical investigation. Journal of Management Information Systems, [e-journal] 28(4), pp.231-270. DOI: 10.2753/mis0742-1222280409.
Ross, D.F., 2015. Information technology and supply chain management. In: D.F. Ross ed. Distribution Planning and Control. New York, NY: Springer Link. pp. 827-886.
Salojärvi, H., Sainio, L.-M. and Tarkiainen, A., 2010. Organizational factors enhancing customer knowledge utilization in the management of key account relationships. Industrial Marketing Management, [e-journal] 39(8), pp.1395-1402. DOI: 10.1016/j.indmarman.2010.04.005.
Sánchez-Rodríguez, C., Hemsworth, D. and Martínez-Lorente, Á.R., 2005. The effect of supplier development initiatives on purchasing performance: A structural model. Supply Chain Management: An International Journal, [e-journal] 10(4), pp.289-301. DOI: 10.1108/13598540510612767.
Sarkis, J., 2020. Supply chain sustainability: Learning from the COVID-19 pandemic. International Journal of Operations & Production Management, [e-journal] 41(1), pp.63-73. DOI: 10.1108/ijopm-08-2020-0568.
Sezen, B., 2008. Relative effects of design, integration and information sharing on supply chain performance. Supply Chain Management: An International Journal, [e-journal] 13(3), pp.233-240. DOI: 10.1108/13598540810871271.
Shahed, K.S., Azeem, A., Ali, S.M. and Moktadir, M.A., 2021. A supply chain disruption risk mitigation model to manage COVID-19 pandemic risk. Environmental Science and Pollution Research, [e-journal], pp. 1-16. DOI: 10.1007/s11356-020-12289-4.
Shee, H., Miah, S.J., Fairfield, L. and Pujawan, N., 2018. The impact of cloud-enabled process integration on supply chain performance and firm sustainability: The moderating role of top management. Supply Chain Management: An International Journal, [e-journal] 23(6), pp.500-517. DOI: 10.1108/scm-09-2017-0309.
Shen, Z.M. and Sun, Y., 2021. Strengthening supply chain resilience during COVID‐19: A case study of JD.com. Journal of Operations Management, [e-journal] 69(3), pp.359-383. DOI: 10.1002/joom.1161.
Shukor, A.A.A., Newaz, M.S., Rahman, M.K. and Taha, A.Z., 2020. Supply chain integration and its impact on supply chain agility and organizational flexibility in manufacturing firms. International Journal of Emerging Markets, [e-journal] 16(8), pp.1721-1744. DOI: 10.1108/ijoem-04-2020-0418.
Srimarut, T. and Mekhum, W., 2020. The impact of compatibility on the process integration of the supply chain in improving firm performance: The mediating effect of information technology capability. International Journal of Supply Chain Management, 9(1), pp.155-167.
Storey, C. and Larbig, C., 2017. Absorbing customer knowledge: How customer involvement enables service design success. Journal of Service Research, [e-journal] 21(1), pp.101-118. DOI: 10.1177/1094670517712613.
Tran, P.N.T., Gorton, M. and Lemke, F., 2021. When supplier development initiatives fail: Identifying the causes of opportunism and unexpected outcomes. Journal of Business Research, [e-journal] 127, pp.277-289. DOI: 10.1016/j.jbusres.2021.01.009.
Tripathy, S., Aich, S., Chakraborty, A. and Lee, G.M., 2016. Information technology is an enabling factor affecting supply chain performance in Indian SMEs. Journal of Modelling in Management, [e-journal] 11(1), pp.269-287. DOI: 10.1108/jm2-01-2014-0004.
Tukamuhabwa, B., Stevenson, M. and Busby, J., 2017. Supply chain resilience in a developing country context: A case study on the interconnectedness of threats, strategies and outcomes. Supply Chain Management: An International Journal, [e-journal] 22(6), pp.486-505. DOI: 10.1108/scm-02-2017-0059.
Vanpoucke, E., Vereecke, A. and Muylle, S., 2017. Leveraging the impact of supply chain integration through information technology. International Journal of Operations & Production Management, [e-journal] 37(4), pp.510-530. DOI: 10.1108/ijopm-07-2015-0441.
Vijayasarathy, L.R., 2010. An investigation of moderators of the link between technology use in the supply chain and supply chain performance. Information & Management, [e-journal] 47(7-8), pp.364-371. DOI: 10.1016/j.im.2010.08.004.
Ye, F. and Wang, Z., 2013. Effects of information technology alignment and information sharing on supply chain operational performance. Computers & Industrial Engineering, [e-journal] 65(3), pp.370-377. DOI: 10.1016/j.cie.2013.03.012.
Authors
Phan, A., Nguyen, H. T., Nguyen, H., & Matsui, Y. (2023). Contribution of Information Sharing to Supply Chain Performance in Developing Country: Empirical Evidence from Manufacturing Plants in Vietnam. Quality Innovation Prosperity, 27(2), 122–138. https://doi.org/10.12776/qip.v27i2.1860
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