Mediation effect of business process and supply chain management capabilities on the impact of IT on firm performance: Evidence from Chinese firms |
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| Institution: | 1. Sun Yat-Sen Business School, Sun Yat-Sen University, Guangzhou 510275 China;2. Franklin P. Perdue School of Business, Salisbury University, Salisbury, MD 21801, USA;3. Dillard College of Business Administration, Midwestern State University, Wichita Falls, TX 76308, USA;1. Information Systems Department, Autonomous University of Aguascalientes, Ave. Universidad 940, Aguascalientes, Ags 20131, Mexico;2. School of Computing, Dublin City University, Glasnevin, Dublin 9, Ireland;3. School of Management, Texas Woman’s University, 1215 Oakland St., Denton, TX 76201, USA;4. CCADET, Universidad Nacional Autónoma de México, Circuito Exterior S/N, C.P. 04510, Cd. Universitaria, México D.F., Mexico;1. Universitat Rovira i Virgili, Department of Communication Studies, Av. Catalunya, 35. 3rd Floor, Room 323, 43002 Tarragona, Spain;2. Universidad de Alicante, Department of Communication and Social Psychology, Carretera San Vicente del Raspeig s/n 03690, San Vicente del Raspeig, Alicante, Spain;3. Universidad de Málaga, School of Communication Sciences, Campus de Teatinos, 29071 Málaga, Spain;1. Department of Information Management, National Chung Cheng University, Taiwan;2. Department of Information Management, National Chung Cheng University, Taiwan;3. Department of Information Management, National Chung Cheng University, Taiwan;1. College Business Administration, Hanyang University, Seoul, South Korea;2. Management Department, College of Business and Public Affairs, West Chester University, West Chester, PA 19383, USA;3. Global Business School, Soon Chun Hyang University, Chungcheongnam-do, South Korea;4. Department of Information, Operations and Technology Management, College of Business and Innovation, The University of Toledo, Toledo, OH 43606, USA;1. School of Business Administration, Shantou University, Shantou, Guangdong Province, PR China;2. School of Business Administration, Southwestern University of Finance and Economics, Chengdu, Sichuan Province, PR China;3. Information Technology Management, School of Business, University at Albany, 1400 Washington Avenue, Albany, NY 12222, USA;1. Department of Business Organization, Marketing and Sociology, University of Jaén, EPS Linares, C/ Alfonso X el Sabio, 28. Office: A-202, E-23700 Linares, Jaén, Spain;2. Department of Business Organization, Markleting and Sociology, University of Jaén, EPS Linares C/ Alfonso X el Sabio, 28. Office: A-228, E-23700 Linares, Jaén, Spain |
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| Abstract: | Motivated by the seeming presence of the productivity paradox in China, this research revisits the question of how information technology (IT) affects firm performance. Leveraging the process-based view of IT, we establish a theoretical framework for the mediation factors for the relationship between IT capabilities and performance. Based on a survey of 127 companies in China, we find that a firm's management capabilities to manage both its internal and external business processes fully mediate the impact of IT on firm performance. The two management capabilities in this study are business-process management capability and supply-chain management capability. Our results show that only the coherent integration of IT capability with firm’s ability to optimize business processes and to improve management of supply chains can enhance firm performance. Firms should avoid the fallacy that IT investments are solely responsible for better firm performance. Based on our findings, we discuss the implications for research and practice. |
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| Keywords: | IT capability Business process management Supply chain management Firm performance Mediation |
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