The role of information technology in supply chain integration

Outsourcing has increasingly been recognized as a source of great competitive advantage. By moving away from vertical integration and towards outsourcing, firms face a new challenge in integrating the various activities of the supply chain. The advent of novel information technologies, however, has made the integration of supply chain activities more manageable. In this study, we evaluate the effects of the usage of different information technologies on supplier and logistics integration in supply chains. A cross-sectional mail survey of ISM members in the United States was utilized to collect empirical data. ANOVA analysis was conducted to delineate the differences in the integration constructs across different levels of information technology usage. The results provide empirical evidence supporting the fact that information technology engenders supplier as well as logistics integration.