IT Enablers and Partner Relationship, the Keys to the Practices of Supply Chain Management

Abstract

Many researchers consider information technology (IT) a great enabler for the practices of supply chain management (SCM). Meanwhile, the practices of SCM depend on good partner relationship, which is built on trust, commitment and shared vision between supply chain partners. This research develops and validates a set of measurements of IT enablers and partner relationship and provides a framework to understand the relationships between IT enablers, partner relationship, and SCM practices. Data for this study were collected from 196 organizations and the relationships proposed in the framework were tested using structural equation modeling. The results indicate that higher levels of IT usage directly lead to better partner relationship and higher levels of SCM practice. Also, partner relationship has a direct, positive impact on SCM practices