Supply chain information capabilities and performance outcomes: An empirical study of Korean steel suppliers

Abstract

This article discusses how supply chain information capabilities are instrumental to achieve performance outcomes. We identify critical components of supply chain information capabilities in terms of inter-organizational information system capacity and inter-organizational relational competency. In view of the high degree of industry concentration in Korea, this article presents and tests a research model using a sample of Korean steel suppliers. Empirical tests are conducted using the structural equation modeling, PLS (partial least squares). The results of this study suggest that Korean manufacturing (e.g., automobile, shipbuilding, construction, and mobile industries) are heavily influenced by the competitiveness of the steel industry in terms of supply chain information capabilities and performance outcomes supply chain-level (i.e., supply chain flexibility) and firm-level performance outcomes (i.e., customer responsiveness and cost reductions). Future research may extend the findings of this study in other country contexts to accomplish both customer responsiveness and cost reductions through supply chain information capabilities. (C) 2014 Elsevier Ltd. All rights reserved.