Information technology and people involvement in organizational performance through supply chain collaboration

Abstract

Purpose Supply chain collaboration (SCC) benefits organizational performance (OP). Although it is complex, it is also hard to implement and measure collaborative initiatives in the field of the supply chain. This study aims to examine the role of information technology (IT) and people’s involvement in OP through the mediation of supply chain collaboration. Design/methodology/approach This study used a deductive and quantitative approach to test the research hypotheses. Data was collected from 249 supply chain professionals working at various manufacturing firms. Findings This research found a significant effect of IT on supply chain collaboration. Similarly, people involvement (PI) also significantly influenced the supply chain collaboration. For the mediation hypotheses, SCC significantly mediates the relationships between two independent variables (IT and PI) and OP. Furthermore, the full mediation of SCC occurred. Originality/value This study provides a framework emphasizing manufacturing firms’ practices, SCC and OP. The “people involvement” was found as a novel variable in the tested model using the resource-based view as a supporting theory. The research findings can benefit the professionals working on supply chain business processes to improve OP.