The impact of information sharing in supply chains on organisational performance: an empirical study

Abstract

Information sharing has been cited as one of the major means to enhance supply chain performance. It allows companies to better coordinate their activities with their supply chain partners that lead to increased performance. This study conceptualises and assesses several factors that influence the degree of information sharing in supply chains, namely integrated information technologies, internal integration, information quality and costs–benefits sharing. The relationship between the degree of information sharing and organisational performance is then tested. Data from 150 manufacturing companies were collected and proposed relationships are examined using structural equation modelling. The results show that integrated information technologies and information quality have positive influence on the intensity of information sharing. However, internal integration and costs–benefits sharing do not relate to the intensity of information sharing. This study finds that information sharing does not directly relate to organisational performance. Its relationship is mediated by collaboration practices with supply chain partners. This suggests that information sharing is essential but insufficient by itself to bring significant performance improvements.

Keywords:

• information sharing
• supply chain management
• factor analysis
• path analysis
• structural equation modelling

Acknowledgements

We thank the two anonymous referees who provided very valuable comments on this article. An earlier version of this article was presented at the 10th Asia Pacific Industrial Engineering and Management Systems Conference in 2009, Kitakyushu, Japan.