Information Systems Integration Mechanisms within Supply Chain Agility in the Chinese Automotive Industry

Information systems are a critical factor in achieving supply chain agility in fluctuating markets. However, there has been limited research on identifying specific mechanisms on how information systems may affect supply chain agility. This gap is addressed by illustrating the complementary role of supply chain agility across operational dimensions, such as flexibility, responsiveness and dependability and organizational learning leading to improved operational performance. A conceptual model is developed to explicate the significance of IS on these operational dimensions drawing examples from the context of Chinese automotive supply chains. The research finds that cost issues affect IS integration for suppliers while production capacity and changing business requirements and transparency of information inhibit supply chain agility.