The influence of information technology on supply chain resilience through purchasing strategy, production flexibility, and supply chain responsiveness

Authors

Ruth Srininta Tarigan
Zefanya Valentino Bastanta Tarigan
Maria Natalia Damayanti Maer
Zeplin Jiwa Husada Tarigan
Ferry Jie, Edith Cowan UniversityFollow

Author Identifier

Ferry Jie: https://orcid.org/0000-0002-6287-8471

Document Type

Journal Article

Publication Title

Decision Science Letters

Volume

13

Issue

4

First Page

791

Last Page

806

Publisher

Growing Science

School

School of Business and Law

RAS ID

75993

Comments

Tarigan, R. S., Tarigan, Z. V. B., Maer, M. N. D., Tarigan, Z. J. H., & Jie, F. (2024). The influence of information technology on supply chain resilience through purchasing strategy, production flexibility, and supply chain responsiveness. Decision Science Letters, 13, 791-806. https://doi.org/10.5267/j.dsl.2024.9.001

Abstract

In today's rapidly changing business environment, companies need to be dynamic, adapting their internal processes to respond effectively to external changes. Information Technology has become crucial for businesses to enhance their ability to manage and adapt to change. This study examines East Java manufacturing companies that have heavily invested in sustainable IT systems to enhance their supply chain responsiveness and resilience through improved purchasing strategies and production flexibility. The study collected data from companies that had implemented IT for at least three years, with respondents being permanent employees with a minimum of two years' experience. Analysis of 108 survey responses using SmartPLS 4 revealed significant impacts of IT implementation on purchasing strategy (0.610), production flexibility (0.363), and supply chain responsiveness (0.164). Furthermore, purchasing strategy influenced production flexibility (0.367), supply chain responsiveness (0.348), and resilience (0.166). Production flexibility also affected supply chain responsiveness (0.348) and resilience (0.343), while responsiveness impacted resilience by 0.306. These findings provide a practical contribution for functional managers in companies regarding the importance of IT investment in developing effective purchasing, production, and marketing strategies to meet market demands swiftly. The research contributes to supply chain strategy and resilience theory while highlighting the significance of strong collaboration with external partners for top management.

DOI

10.5267/j.dsl.2024.9.001

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 License.