Information technology governance in supply chain: integration mechanisms under uncertain environment

Abstract

Virtual integration and information sharing are two important information technology (IT) governance mechanisms to foster efficient and effective collaboration among supply chain partners. However, insufficient empirical studies have been conducted to understand how the two mechanisms interplay in supply chains under an uncertain business environment. Based on data collected from 272 manufacturers in China, we empirically investigated the relationships between virtual integration, supply chain information sharing, and operational performance. Our findings showed that two dimensions of information sharing fully mediated the relationship between virtual integration and operational performance. We also found that supply uncertainty moderated the relationships between virtual integration and information sharing, and between virtual integration and operational performance. Most interestingly, the directions of moderating effects were different depending on the dimensions of information sharing and operational performance. These findings have theoretical and managerial implications for IT governance in supply chain management (SCM).