The effect of technology orientation on integrative supply chain strategy and operational performance

Integrative information technology has been widely adopted as a key component of supply chain integration strategy, following extensive recent research which has confirmed a positive association between supply chain integration and operational performance. However, although integrative information technology is often assumed to enhance supply chain integration and operational performance, the factors which encourage firms to invest in integrative information technology are less certain. To investigate this uncertainty, this study amplifies earlier work on the impact of integrative information technology on supply chain integration by introducing strategic orientation, especially technology orientation, as a potential antecedent of integrative information technology and supply chain integration strategy. An instrument was devised to glean the perceived relationships between technology orientation, integrative information technology, supply chain integration, and operational performance and was completed by 101 South Korean manufacturers. Structural equation modeling of their responses indicates that technology orientation has a significant impact on supply chain integration strategy and operational performance. In addition, integrative information technology has a significant effect on supply chain integration which in turn affects operational performance positively. To improve the operational performance of manufacturing organizations in South Korea requires an increased technology orientation, which is an antecedent of integrative information technology and operational performance. Given the global importance of South Korean manufacturers, future studies could usefully investigate the incidence of these antecedents in other economies.