Developing Supply Chain Dynamic Capability to Realize the Value of Inter-Organizational Systems

In face of increasingly complex supply chain, firms are taking steps to develop different kinds of interorganizational systems (IOS) to facilitate information sharing and sustain competitive competency. These systems are expected to provide great business value, however many of them do not fulfill the expected promise as these systems are relatively more complicated and the usage is across supply chains. Built upon process theory and the view of dynamic capability, this study defines two types of supply chain dynamic capability (SDC) -supply chain integration capability and supply chain cooperation capability and proposes that SDC plays a significant role in determining IOS performance. A general survey is conducted in Taiwan PC industry to validate the research model. A linear regression is used to testify the hypotheses. The results show that improving SDC can create greater IOS performance. Furthermore, supply chain integration capability has stronger moderating effect of IOS performance than supply chain cooperation capability. These findings contribute to the literature by confirming the influence of SDC on IOS performance and also by showing which SDC is of primary importance to firms.