Exploring the Importance of Business Clockspeed as a Moderator for Determinants of Supplier Network Performance*

As the importance of supplier networks becomes increasingly recognized as a vital factor to company performance, researchers and practitioners alike are focusing their attention on this subject. The study's main objective is to test the specific hypotheses that effective use of Information Technology (IT) and the depth of company relationships with suppliers are directly related to Supplier Network (SN) performance, and that industry clockspeed moderates these relationships. A convenience sample of 135 manufacturing organizations was used to empirically test these hypotheses. Our results indicate that clockspeed does moderate the relationship between IT use effectiveness and supplier network performance. The same is true in the case of supplier relations depth, and hence, managers are encouraged to pay attention to the items comprising network performance as a determinant of supplier network performance.