Influence of inter‐organisational integration on business performance The mediating role of organisational‐level supply chain functions

• Published in: Journal of enterprise information management Vol. 22; no. 4; pp. 456 - 467
• Main Authors: Rajaguru, Rajesh, Matanda, Margaret Jekanyika
• Format: Journal Article
• Language: English
• Published: Bradford Emerald Group Publishing Limited 24.07.2009
• Subjects: Australia; Business information; Collaboration; Competition; Competitive advantage; Costs; Hypotheses; Information management; Information sharing; Information systems; Logistics; Marketing; Product development; Retailing industry; Small & medium sized enterprises-SME; Studies; Suppliers; Supply chain management; Australia
• ISSN: 1741-0398; 1758-7409
• DOI: 10.1108/17410390910975059

Purpose The purpose of this paper is to investigate the mediating role of organisational level supply chain activities on the effect of inter‐organisational information systems (IOIS) and activity (IOA) integration on business performance of retailing organisations within Australia. Design/methodology/approach The study followed a causal research approach and survey methodology to collect data from the managers of food and hardware retailers. Multiple regression and MacKinnon et al. 's mediation analysis were used to investigate the hypothesised relationships. Findings The results suggest that inter‐organisational information systems (IOIS) and activity integration have positive effects on customer responsiveness and financial performance of organisations. Organisational‐level supply chain functions mediate the relationships between IOIS and activity integration and customer responsiveness, as well as financial performance. Research limitations/implications The research focused at the retailer level of the supply chain. Large‐scale cross‐sectional studies that include other levels of supply chain are required for generalisability. Practical implications The research suggests that organisations need to integrate their inter‐organisational information systems and activities with supply chain partners to enhance supply chain and business performance. Originality/value The results extend the body of knowledge on inter‐organisational information systems, inter‐organisational integration and supply chain management. The study also provides some empirical insights into management practices in the retailing sector.