Antecedents and Consequence of Internet-enabled Supply Chain Integration: An Exploratory

Understanding the antecedents and consequence of Internet-enabled Supply Chain Integration (IeSCI) is an important concern to researchers and practitioners. Although the existing research has identified economic and legitimacy-oriented motives that lead IeSCI, there is a lack of research investigating how these motives are interrelated. In addition, the findings of previous studies on the consequence of IeSCI adoption have been mixed and even controversial. Drawing upon transactional cost economics (TCE) and institutional theory, this study develops a research model on the interrelationships between economic and legitimacy-oriented motives, the IeSCI dimensions, and firm performance. Results from a survey show that the firm’s economic and legitimacy motives have positive effects on the adoption of IeSCI dimensions (i.e., information integration, planning synchronization and operational coordination). Meanwhile, economic and legitimacy motives are significantly interrelated. In addition, information integration and operational coordination can improve firm operational and customer service performance. Contributions and implications of this study are discussed.