The Role of Complementary Resources in the Development of E-Supply Chains and the Firm's Performance: An Exploratory Analysis of Secondary Data

Authors:
Yoo-Taek Lee;Sung-Yong Ryu;Kathleen E. McKone-Sweet
Affiliations:
Operations and Technology Management Department, Boston University, Boston, MA, USA;Department of Business Administration, Soon Chun Hyang University, Ansan, Republic of Korea;Technology, Operations, and Information Management Division, Babson College, Babson Park, MA, USA
Venue:
International Journal of Operations Research and Information Systems
Year:
2013

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Abstract

E-supply chains e-SCs, which are Internet-enabled supply chains, are progressively being implemented by companies to improve their operational and financial performance. Several studies exist where the association between the development of an e-supply chain and the performance of a firm have been investigated. However, there is a paucity of literature that describes how information technology IT resources interact with other complementary resources to e-supply chains that positively impact a firm's performance. This paper seeks to adopt a resource-based view of the firm RBVF and empirically tests a framework that identifies and validates the relationships among IT resources, complementary resources to e-supply chains, and performance of a firm. This study utilizes secondary data from two sources-data collected by the South Korean Ministry of Commerce, Industry and Energy MOCIE and financial data from the Korea Exchange. The data from a total of 170 firms representing 10 industries in South Korea was analyzed using a partial least-squares technique PLS. The results of the analysis confirm that IT resources do not directly influence supply chain performance. However, when associated with a complementary resource, IT resources positively affect both supply chain operations and a firm's financial performance. The findings of this research support the current existing literature on the RBVF approach with regard to the domain of supply chain management, and can provide additional insights to industry practitioners on how to effectively utilize complementary resources in developing e-SCs to deliver improved performance.