Role of Information Sharing on Supply Chain Performance – A Context of Developing Country

Abstract

Purpose – This study aims at finding out how cost, quality, delivery and flexibility as supply chain performance (SCP) measures are affected by information sharing in the context of a developing country Nepal. Design/Methodology/Approach – The research was carried out in Nepal with data collected through a survey from 131 supply chain participants that includes suppliers, growers, manufacturers, distributors/dealers, wholesalers, retailers and logistics service providers. Exploratory factor analysis (EFA), confirmatory factor analysis (CFA) and path analysis were performed to assess the fitness of the proposed model and test the hypothesis developed for this study. Findings – The findings demonstrated that information sharing plays a key role in enhancing the performance of supply chains (SC). It shows that delivery and flexibility performance are significantly affected by operational as well as strategic information sharing while cost and quality performance are not affected by information sharing. Originality/Value – This study adds to the existing knowledge by providing empirical support towards the role of operational and strategic information sharing on cost, quality, delivery and flexibility, especially in the context of a landlocked developing country. Research Limitations/Implications – The main limitation is the moderate response rate than desired. While the composition of respondents represented the targeted companies, most of the participants were manufacturers (56%). Practical Implications – The results of this study will help supply chain participants in Nepal to have an enhanced insight and awareness towards the importance of information sharing in enhancing their performance.