Manufacturing firms are increasingly using advanced enterprise-level information systems to coordinate and synchronize externally oriented functions such as marketing and supply chain and internally oriented activities such as manufacturing. In this paper, we present a model of manufacturing performance that simultaneously considers the effects of a firm's integrated IS capability in conjunction with interfunctional and interorganizational coordination mechanisms. Consistent with the complementarity perspective, we view this specific form of IS capability as enhancing manufacturing's coordination with marketing and supply chain functions to drive manufacturing performance. Additionally, the theoretical model presented here introduces manufacturing-IS coordination, a form of coordination not considered in past research, as a key antecedent to integrated IS capability. The research thus provides a comprehensive framework for examining manufacturing performance in contexts that have been transformed by the use of advanced information systems. The theoretical model is tested using primary data collected from manufacturing firms and matched with objective manufacturing performance data from secondary sources. Results show that a firm's integrated IS capability, as well as the complementary effects of IS capability with manufacturing, marketing, and supply chain processes, are significant predictors of manufacturing performance. These findings are robust to concerns of endogeneity, unobserved heterogeneity, and alternative model specification.
24 November 2008 in Journal of Operations Management
Reducing the risks believed to be associated with product availability can be critical to increasing consumer retention rates. This study considers the role that perceptions of channel integration have on such beliefs and their impact on purchasing decisions. Surveys distributed to purchasers of specific goods both online and in-store provide data used in the analysis of these effects. The findings suggest that firms simultaneously managing both online and in-store channels should not only reassess the repercussions of availability failures but also consider efforts that encourage the transparency of channel integration.