This paper presents a conceptual framework that hypothesizes the nature of the relationships between a firm's use of Internet-based information technology (IT), supply chain planning capability, and operational performance. Using data from 266 manufacturing sites and structural equation modeling, we show that the impact of IT on operational performance is contingent upon the intent of its use. Specifically, our results suggest that IT's use in exploiting existing opportunities has both a direct effect and an indirect effect, mediated through supply chain planning capabilities, on operational performance. In contrast, when IT is used to explore new opportunities, it has neither a direct nor an indirect effect on operational performance. Implications of these research findings are reported.
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Acknowledgement We want to thank Emin Babakus, Anant Mishra, and two anonymous reviewers for their comments which have greatly improved the quality of the article. We also want to recognize the Babson College Research Fund for partial funding of this research.
- Empirical research
- Information technology
- Supply chain management