The Relationship of Information Systems, Supply Chain Management With Organisational Performance
Purpose In today's world, Supply Chain Management (SCM) is a key strategic factor for increasing organisational effectiveness and for better realisation of organisational goals such as competitiveness, better customer care and increased profitability (Ganesh Kumar and Nambirajan, 2013) As such, research interest has focused on supply chain practices with SMEs and large organisations in terms of supply chain information systems (SCIS) and organisational performance. Research Approach This study aims at the exploration of the statistical relationship between (SCIS) Effectiveness and Organisational Performance. The findings from a survey involving 168 IT managers show a strong correlation between SCIS and non financial Organisational Performance across a cohort of Small Medium Enterprises (SMEs) and large organisations. Findings and Originality These findings are further confirmed by a recent publication from Ganesh Kumar and Nambirajan, (2013) This study identified the items used by researchers for the measurement of both constructs. Exploratory Factor Analysis was employed as there was no theoretical basis to specify a priori the number and patterns of common factors (Hurley et al. 1997) especially for the extraction of factors measuring the non financial performance of a firm. Research Impact The analyses also revealed that companies with a high implementation degree show a better supply chain performance. Furthermore, the results show that this paper contributes to the SCM field by providing scales for financial and non financial performance constructs, and by exploring how those are improved by the adoption of specific Supply Chain Information Systems. Practical Impact The purpose of this study aims at the exploration of the statistical relationship between Supply Chain Information Systems' (SCIS) Effectiveness and Organisational Performance, when this is measured by financial and non financial variables and the impacts on SMEs performance.