Information Systems,Supply Chain Management and Operational Performance: Tri-linkage—An Exploratory Study on Pharmaceutical Industry of India

Abstract

The present study made an effort to investigate the tri-linkage between information systems (ISs) and supply chain management (SCM) practices to enhance the operational performance (OP) of an organization. The study made an effort to find out, how different kinds of ISs help the supply chain to achieve greater OP. Three constructs, namely, operational IS, strategic IS and infrastructural IS, have been identified from literature. Four plant-level supply chain constructs, namely, strategic supplier partnership, information sharing and information quality, purchasing management and inventory management, have been identified. The co-relation between ISs, supply chain practices and OP has been tested. Finally, both ISs and supply chain impact on OP have been evaluated. The ISs create an indirect impact on OP via supply chain practices, which results in OP. The OP can be in the form of reduction in number of defects in operations, quality improvement in products, delivery of products or raw material at right place, at right time and in right quantity. The study leads to interesting implications for practitioners. The ISs should be connected at various levels, that is, operational, strategic and infrastructural, to support the entire supply chain. With the changing dynamics of accuracy and speed in operations and the target of achieving economies of scale, the role of ISs becomes critical in the entire supply chain. The supply chain and information technology practices impact on OP has been studied by the number of authors. However, the classification of ISs and plant-level supply chain impact on OP has not been studied in detail by authors.