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abstract
This study has empirically tested a framework identifying the causal links among supply
chain management (SCM) and information systems (IS) practices, SCMIS related
inhibiting factors and operational performance based on a sample of 203 manufacturing
SMEs operating in the manufacture of fabricated metal products and general purpose
machinery within the greater metropolitan area of Istanbul in Turkey. Moderating effect
of SCM and IS related enabling factors on the above mentioned relationships is also
investigated in this study. Tests of hypotheses indicate that both SCM and IS practices
positively and signicantly inuence the operational performance of sample rms. The
results of the structural model also indicate a strong support for negative relationships
between SCMIS related inhibitors and the implementation levels of both SCM and IS
practices. Similarly, a strong support was found for the hypothesized negative
relationship between SCMIS inhibitors and operational performance of SMEs. Finally,
we veried the moderating impact of SCMIS enablers on the link between SCM
practices and operational performance. A similar moderating impact was also found
with regard to the relationship between IS practices and operational performance.
& 2009 Elsevier B.V. All rights reserved.
Keywords:
Supply chain management
Information systems
Operational performance
SMEs
Turkey
1. Introduction
Spurred by intensifying competition in global markets,
most companies have been increasingly implementing
supply chain management (SCM) and information systems (IS) practices. Lean practices have long dominated
companies to accomplish excellence in their business
operations. Information systems facilitated by technological advancements attempt to integrate many business
processes for fast, accurate and on-line access to data.
With the increasing use of integrated information systems
Corresponding author. Tel.: +44 114 222 3395; fax: +44 114 222 3348.
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SCM Practices
SCM- IS
Inhibitors
SCM- IS
Enablers as
Moderator
Operational
Performance
IS Practices
Fig. 1. Research framework.
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Table 1
EFA of the SCM practices.
Factors
Factor loads
0.70
0.69
0.63
0.61
0.60
0.58
0.77
0.67
0.63
0.74
0.68
0.67
0.64
Eigen-value
% Variance explained
Cum. (%)
Cronbach alpha
3.57
27.46
27.46
0.75
1.41
10.87
38.34
0.71
1.32
10.13
48.47
0.66
KMO measure of sampling adequacy 0.788; Bartlett test of sphericity 491.765; po0.000.
Table 2
EFA of the IS practices.
Factors
Factor loads
0.83
0.81
0.64
0.64
0.63
0.55
0.81
0.79
0.69
0.53
0.78
0.77
0.54
Eigen-value
% Variance explained
Cum. (%)
Cronbach alpha
4.06
31.26
31.26
0.78
2.36
18.12
49.38
0.77
1.08
8.29
57.67
0.74
KMO measure of sampling adequacy 0.757; Bartlett test of sphericity 908.734; po0.000.
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Table 3
EFA of the SCMIS inhibitors.
Factors
Factor loads
0.82
0.81
0.81
0.61
0.92
0.86
0.73
Eigen-value
% Variance explained
Cum. (%)
Cronbach alpha
4.28
61.26
61.26
0.77
1.08
12.61
73.87
0.71
KMO measure of sampling adequacy 0.857; Bartlett test of sphericity 814.055; po0.000.
Table 4
Conrmatory factor analysis of SCM practices.
Table 6
Conrmatory factor analysis of SCMIS inhibitors.
Factors
Regression weight
Factors
0.59
0.57
0.57
0.56
0.67
0.65
0.36
0.39
0.69
0.59
0.35
0.54
0.42
po0.001.
Table 5
Conrmatory factor analysis of IS practices.
Factors
Regression weight
IS Facilitators (IS1)
E-business
EDI
RFID
E-commerce
Decision support systems
Bar coding
0.91
0.64
0.38
0.60
0.64
0.43
IS Integrators (IS2)
CRM
SRM
SCM
APS
0.76
0.70
0.61
0.65
Enterprise-wide IS (IS3)
ERP
MRP II
MRP
0.62
0.93
0.61
p o0.001.
Regression
weight
0.76
0.85
0.77
0.65
0.64
0.74
0.89
0.91
po0.001.
Table 7
Goodness of t statistics (N 203).
Model/Construct
w2
w2/df
RMR
GFI
AGFI
CFI
SCM practices
IS practices
SCMIS inhibitors
82.34
141.25
42.11
1.37
2.39
3.24
0.10
0.07
0.08
0.94
0.91
0.95
0.91
0.85
0.89
0.95
0.90
0.96
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Table 8
Unidimensionality tests.
Constructs
Number of indicators
Cronbach alpha
Dillon-Goldsteins r
First eigen-value
Second eigen-value
SCM practices
IS practices
SCMIS inhibitors
Performance
3
3
2
7
0.59
0.62
0.80
0.83
0.79
0.81
0.91
0.87
1.36
1.26
1.84
3.23
0.64
0.39
0.35
0.83
SCM1
SCM3
SCM2
0.528
0.595
0.527
SCM
Practices
0.26
OPER1
-0.332
INH1
INH2
0.543
0.509
SCM-IS
Inhibitors
0.226
0.275
0.171
Operational
Performance
0.37
-0.349
-0.288
0.123
0.219
0.193
0.147
0.176
0.290
OPER2
OPER3
OPER4
OPER5
OPER6
OPER7
IS Practices
0.21
0.405
IS1
0.556 0.694
IS2
IS3
Fig. 2. Results of the base path model without moderating effect of SCMIS enablers. *Denotes R2 value.
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Table 9
Outer regression weights for the base path model without moderating
effect of SCMIS enablers.
Construct
Outer weights
Bootstrapping
SCM1SCM practices
SCM2SCM practices
SCM3SCM practices
IS1IS practices
IS2IS practices
IS3IS practices
INH1SCMIS inhibitors
INH2SCMIS inhibitors
OPER1PERF
OPER2PERF
OPER3PERF
OPER4PERF
OPER5PERF
OPER6PERF
OPER7PERF
0.528
0.595
0.527
0.405
0.556
0.694
0.543
0.509
0.226
0.275
0.219
0.193
0.147
0.176
0.290
0.527
0.599
0.326
0.105
0.555
0.691
0.541
0.507
0.226
0.275
0.217
0.193
0.148
0.080
0.289
po0.01.
po0.001.
Table 10
Inner regression weights for the base path model without moderating
effect of SCMIS enablers.
Construct
Inner weights
Bootstrapping
SCM practicesPERF
InhibitorsPERF
IS practicesPERF
SCMIS inhibitorsSCM practices
SCMIS inhibitorsIS practices
0.171*
0.349***
0.123*
0.332***
0.288***
0.170
0.345
0.125
0.328
0.282
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SCM1
SCM3
SCM2
0.496
145
0.490
0.594
SCM
Practices
OPER1
-0.344
INH1
INH2
0.534
0.483
SCM- IS
Inhibitors
0.201
0.310
0.185
Operational
Performance
0.52
-0.386
-0.195
0.211
0.202
0.188
0.147
0.125
0.259
OPER2
OPER3
OPER4
OPER5
OPER6
OPER7
IS Practices
0.450
0.534 0.613
IS1
IS2
IS3
Fig. 3. Results of the path model with high moderating effect of SCMIS enablers. *Denotes R2 value.
Table 11
Inner regression weights for the path model with high moderating effect
of SCMIS enablers.
Construct
Inner weights
Bootstrapping
SCM practicesPERF
SCMIS inhibitorsPERF
IS practicesPERF
SCM practicesSCMIS inhibitors
IS practicesSCMIS inhibitors
0.185
0.386
0.211
0.344
0.195
0.182
0.380
0.205
0.337
0.194
po0.01.
po0.001.
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SCM1
SCM3
SCM2
0.576
0.610
0.409
SCM
Practices
OPER1
OPER2
-0.342
INH1
INH2
0.567
0.530
SCM- IS
Inhibitors
0.281
0.216
0.116
Operational
Performance
0.15
-0.364
-0.433
0.002
0.259
0.161
0.117
0.147
0.371
OPER3
OPER4
OPER5
OPER6
OPER7
IS Practices
0.485
0.581 0.837
IS1
IS2
IS3
Fig. 4. Results of the path model with low moderating effect of SCMIS enablers. *Denotes R2 value.
Table 12
Inner regression weights for the path model with low moderating effect
of SCMIS enablers.
Construct
Inner weights
Bootstrapping
SCM practicesPERF
SCMIS inhibitorsPERF
IS practicesPERF
SCM practicesSCMIS inhibitors
IS practicesSCMIS inhibitors
0.116
0.364
0.002
0.342
0.433
0.111
0.396
0.005
0.339
0.425
po0.01.
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data were collected from single respondents in an organization which might be a cause for possible response bias.
Future research should endeavor to collect data from
organizations across the supply chain. Future studies may
also investigate the proposed relationships by integrating
some contextual variables into the model including the type
of industry, supply chain structure and country of origin.
Acknowledgements
The reviewers comments are greatly appreciated.
Without their helpful comments, the paper should not
have reached this shape.
Appendix A
A.1. IS practices
To what extent the following IS practices were implemented in your organization? (Five-point scales ranging from
1 not at all implemented to 5 fully implemented)
Q#
Variables
Measurement
1
2
3
4
5
6
7
8
9
10
11
12
13
15
15
15
15
15
15
15
15
15
15
15
15
15
Variables
Measurement
1
2
3
4
5
6
7
8
9
10
11
12
15
15
15
15
15
15
15
15
15
15
15
15
147
Variables
Measurement
1
2
3
4
5
6
7
15
15
15
15
15
15
15
Measurement
1
2
3
4
5
15
15
15
15
15
6
7
8
15
15
15
Variables
Measurement
1
2
3
4
5
6
7
15
15
15
15
15
15
15
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