Impact of IT Implementation on Operational Performance: Mediating Role of Supply Chain Integration
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Abstract
In today's increasingly globalized and competitive economy, supply chain management (SCM) that makes use of information technology (IT) is more crucial than ever. Information technology's ability to deliver up-to-date, correct data has helped boost business efficiency significantly (OP). The purpose of this research is to examine the connection between IT implementation, Supply Chain Integration, and Operational Performance. It provides a conceptual framework model showing how the introduction of IT affects Operational Performance and how Supply Chain Integration mediates the relationship between IT implementation and Operational Performance. A quantitative approach was used to study data. The structural equation modelling method is used to test theories about the relationship between IT implementation, SCI, and operational performance, using data from manufacturing companies in Pakistan. The findings imply that the introduction of IT has no direct impact on Operational Performance, but rather improves Operational Performance by magnificent impact on Supply Chain Integration. As a result of which, businesses should prioritize Supply Chain Integration promotion and use IT as a facilitator. This indicates that in order for businesses to reap the maximum benefits of SCI, they need to leverage different integration strategies and that in some instances, focusing exclusively on selected integration activities can be counterproductive. Another intriguing conclusion is that businesses can incrementally improve their operational performance in the direction of full exploitation of the benefits of Supply Chain Integration. Implementing IT in supply chains would improve key areas of Supply Chain Integration, which will lead to monetary and operational gains.
Keywords
IT implementation, Supply chain integration, Operational performance, Customer Integration, Internal Integration
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