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Despite substantial information technology (IT) investments, many organizations have failed to obtain hoped-for improvements in supply chain (SC) performance. Therefore, we investigate the mechanisms through which IT influences SC performance. Specifically, we use the resource-based view (RBV) of the firm to ascertain how IT can be exploited to obtain a distinctive SC advantage. We do this via a multimethod (survey and case-study) approach at two periods of time. We use a nested structural equation model (SEM) to test six hypotheses. Likewise, we content analyze interviews to contextualize the SEM findings. Importantly, we find that investments in IT make their greatest competitive contribution when they enable a dynamic SC collaboration capability. The findings provide valuable insight to guide IT investments designed to improve SC performance.
Fawcett et al. (Sat,) studied this question.