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Cited by 410

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The financial performance effects of IT‐based supply chain management systems in manufacturing firms

Dehning, Bruce, Richardson, Vernon J., Zmud, Robert W.·2007·Journal of Operations Management
DOI 10.1016/j.jom.2006.09.001
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Abstract

This paper examines the financial benefits of information technology investments around newly adopted IT‐based supply chain management (SCM) systems by 123 manufacturing firms over the period 1994–2000. We form hypotheses using the value chain to specify the expected financial impact of SCM systems. By examining the change in financial performance pre‐ and post‐adoption controlling for industry median changes in performance, we find that SCM systems increase gross margin, inventory turnover, market share, return on sales, and reduce selling, general, and administrative expenses. We also provide a model showing how process improvements around supply chain initiatives combine to improve overall performance. Finally, we show that contextual effects such as firms in the high‐tech industry and the scope of the supply chain implementation have dramatic effects on the overall financial performance resulting from supply chain implementations.

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Metadata

Authors
Dehning, B., Richardson, V. J., & Zmud, R. W.
Venue
Journal of Operations Management
Publisher
Wiley
Published
2006-11-02
Volume
25
Issue
4
Pages
806-824
ISSN
  • 0272-6963 (ISSN-L)
  • 1873-1317
DOI
10.1016/j.jom.2006.09.001
OpenAlex
W2069134832
Cited by
410
References
1
FWCI
26.11
Type
journal article
Language
en
Open access
closed
Licence
onlinelibrary.wiley.com/termsAndConditions#vor (vor)

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Bibliographic data: Semantic Scholar, OpenAlex, Crossref.

Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).

Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.