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Assessing the performance impact of supply chain planning in net-enhanced organizations

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Abstract

This paper presents a conceptual framework that hypothesizes the nature of the relationships between a firm’s use of Internet-based information technology (IT), supply chain planning capability, and operational performance. Using data from 266 manufacturing sites and structural equation modeling, we show that the impact of IT on operational performance is contingent upon the intent of its use. Specifically, our results suggest that IT’s use in exploiting existing opportunities has both a direct effect and an indirect effect, mediated through supply chain planning capabilities, on operational performance. In contrast, when IT is used to explore new opportunities, it has neither a direct nor an indirect effect on operational performance. Implications of these research findings are reported.

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Acknowledgement

We want to thank Emin Babakus, Anant Mishra, and two anonymous reviewers for their comments which have greatly improved the quality of the article. We also want to recognize the Babson College Research Fund for partial funding of this research.

Author information

Authors and Affiliations

  1. Department of Marketing & Supply Chain Management, University of Memphis, Memphis, TN, 38152, USA

    Gensheng (Jason) Liu

  2. Management Division, Babson College, Babson Park, MA, 02482, USA

    Kathleen McKone-Sweet

  3. Department of Operations and Management Sciences, Carlson School of Management, University of Minnesota, Minneapolis, MN, 55455, USA

    Rachna Shah

Authors
  1. Gensheng (Jason) Liu
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  2. Kathleen McKone-Sweet
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  3. Rachna Shah
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Corresponding author

Correspondence to Kathleen McKone-Sweet.

Additional information

Gensheng (Jason) Liu, Kathleen McKone-Sweet and Rachna Shah contributed to the paper equally and are listed alphabetically.

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Liu, G., McKone-Sweet, K. & Shah, R. Assessing the performance impact of supply chain planning in net-enhanced organizations. Oper Manag Res 2, 33–43 (2009). https://doi.org/10.1007/s12063-009-0022-6

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  • DOI: https://doi.org/10.1007/s12063-009-0022-6

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