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Cited by 29Quality and Supply ManagementInformation Technology Governance and StrategySupply Chain and Inventory Management

Firm Performance Impacts of Digitally Enabled Supply Chain Integration Capabilities1

Rai, Arun, Patnayakuni, Ravi, Seth, Nainika·2006·MIS Quarterly
DOI 10.2307/25148729
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Abstract

Best practice exemplars suggest that digital platforms play a critical role in managing supply chain activities and partnerships that generate performance gains for firms. However, there is limited academic investigation on how and why information technology can create performance gains for firms in a supply chain management (SCM) context. Grant’s (1996) theoretical notion of higher-order capabilities and a hierarchy of capabilities has been used in recent information systems research by Barua et al. (2004), Sambamurthy et al. (2003), and Mithas et al. (2004) to reframe the conversation from the direct performance impacts of IT resources and investments to how and why IT shapes higher-order process capabilities that create performance gains for firms. We draw on the emerging IT-enabled organizational capabilities perspective to suggest that firms that develop IT infrastructure integration for SCM and leverage it to create a higher-order supply chain integration capability generate significant and sustainable performance gains. A research model is developed to investigate the hierarchy of IT-related capabilities and their impact on firm performance. Data were collected from 110 supply chain and logistics managers in manufacturing and retail organizations. Our results suggest that integrated IT infrastructures enable firms to develop the higher-order capability of supply chain process integration. This capability enables firms to unbundle information flows from physical flows,…

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  • The operational performance measures of Liu et al. (2016) are commonly used to assess IT-enabled competitive advantages in empirical studies of information systems and operations management that apply the resource-based view.

    “They are commonly used to assess IT-enabled competitive advantages in empirical studies of information systems and operations management that apply the resource-based view (RBV) of the firm (Flynn et al., 2010; Rai et al., 2006; Wong et al., 2011).”

    From The effects of analytics capability and sensing capability on operations performance: the moderating role of data-driven culture (2025) · cites this paper as Rai et al., 2006

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Authors
Rai, A., Patnayakuni, R., & Seth, N.
Affiliations
  • Georgia State University (US)
  • University of Alabama in Huntsville (US)
ORCID
Patnayakuni, Ravi
Venue
MIS Quarterly
Publisher
MIS Quarterly
Published
2006-06-01
Volume
30
Issue
2
Pages
225-246
ISSN
  • 0276-7783 (ISSN-L)
  • 2162-9730
DOI
10.2307/25148729
OpenAlex
W7214153353
Cited by
27
References
4
Citations by year
2026: 18 · 2025: 3 · 2022: 1 · 2021: 1 · 2013: 1 · 2012: 1
FWCI
1.33
Type
journal article
Language
en
Open access
closed
Locations
MIS Quarterly (publishedVersion)
Topics
  • Social Sciences › Business, Management and Accounting › Management Information Systems › Quality and Supply Management
  • Social Sciences › Business, Management and Accounting › Management Information Systems › Information Technology Governance and Strategy
  • Social Sciences › Business, Management and Accounting › Management Information Systems › Supply Chain and Inventory Management
Keywords
higher-order capabilities, firm performance, demand planning, operational excellence, sales growth, digital platforms, supply chain management

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