The Performance Effects of Complementarities Between Information Systems, Marketing, Manufacturing, and Supply Chain Processes

By Sundar G. Bharadwaj, Anandhi S. Bharadwaj, Elliot Bendoly. Information systems research, 2007

385 citations recorded by the source corpus.

Manufacturing firms are increasingly using advanced enterprise-level information systems to coordinate and synchronize externally oriented functions such as marketing and supply chain and internally oriented activities such as manufacturing. In this paper, we present a model of manufacturing performance that simultaneously considers the effects of a firm's integrated IS capability in conjunction with interfunctional and interorganizational coordination mechanisms. Consistent with the complementarity perspective, we view this specific form of IS capability as enhancing manufacturing's coordination with marketing and supply chain functions to drive manufacturing performance. Additionally, the theoretical model presented here introduces manufacturing-IS coordination, a form of coordination not considered in past research, as a key antecedent to integrated IS capability. The research thus provides a comprehensive framework for examining manufacturing performance in contexts that have been transformed by the use of advanced information systems. The theoretical model is tested using primary data collected from manufacturing firms and matched with objective manufacturing performance data from secondary sources. Results show that a firm's integrated IS capability, as well as the complementary effects of IS capability with manufacturing, marketing, and supply chain processes, are significant predictors of manufacturing performance. These findings are robust to concerns of endogeneity, unobserved heterogeneity, and alternative model specification.

Subfields: Information Systems and Management, Management Information Systems

View Paper: https://www.semanticscholar.org/paper/00883e092b4c49af281402822a61fc63bd37c0f2

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Information Systems and Management

In Management Information Systems

Citations in the corpus

A resource-based perspective on information technology and firm performance: a meta analysis (2010, background): “The value of an organizational resource can increase in the presence of other complementary resources because it is difficult for competitors to copy the total effect (Bhatt and Grover, 2005; Bharadwaj et al., 2007).”
The effects of retail channel integration through the use of information technologies on firm performance (2012, background): “Second, to successfully implement multichannel retailing, firms need to ensure that their information systems can provide seamless data and process integration (Bharadwaj et al., 2007).”
Information technology for competitive advantage within logistics and supply chains: A review (2017, background): “underlying human and organizational factors that influence the use of IT as a strategic resource to achieve competitive advantage (Bharadwaj et al., 2007; Rai et al., 2006).”
Absorptive Capacity and Information Systems Research: Review, Synthesis, and Directions for Future Research (2012, background): “As a result, researchers are beginning to investigate how the synergies derived from IT capabilities and complementary capabilities enhance other organizational capabilities (e.g., absorptive capacity) (Bharadwaj et al. 2007; Brynjolfsson and Hitt 2000; Tanriverdi 2006).”
Cocreation of Value in a Platform Ecosystem: The Case of Enterprise Software (2012, background): “In this way, IT facilitates value cocreation by reducing transaction costs through interorganizational systems that, among other things, strengthen supply chain relationships (Bharadwaj et al. 2007; Clemons et al. 1993; Gerbauer and Buxmann 2000; Melville et al. 2004).”
When and why do customer solutions pay off in business markets? (2017, neutral): “estimated a Probit model using maximum likelihood to assess which of the six variables influence the firms’ decision to offer customer solutions (Bharadwaj et al. 2007).”
Leveraging Information Technology Infrastructure to Facilitate a Firm's Customer Agility and Competitive Activity: An Empirical Investigation (2012, background): “as a magnifier, It allows firms to efficiently share and exchange information [8], thereby leveraging their coordination efforts in response to market opportunities.”