IT integration, operations flexibility and performance: An empirical study
Abstract: This study examines
the relationship between IT implementation and performance with manufacturing
flexibility based on a sample drawn from a set of manufacturing firms.
Design/methodology/approach: The relationships were analyzed using
structural equations modeling (SEM) using EQS 6.2 software. Previously, an
explanatory factor analysis confirmed one-dimensionality of the scales,
Cronbach’s alpha was calculated to evaluate its internal consistency and a
confirmatory factor analysis was run to observe scales’ validity.
Findings: This research proves a significant positive and direct effect
of IT implementation on operations performance with 4 out of 6 flexibility
dimensions (Machine, Labour, Material handling and Volume). Mix and Routing
flexibility dimensions show no significant impact on firm performance.
Research limitations/implications: It is necessary to be cautious when
generalizing these findings, as service firms were not part of the sample even when
statistical results prove robustness suggesting that the findings are quite
reliable. Some flexibility dimensions show no significant impact in performance
(Routing and Mix flexibility). This is consistent with the fact that these
flexibility dimensions act as variability absorbers within the manufacturing
process.
Originality/value: This research proves a significant positive and direct
effect of IT implementation on operations performance. Results show not only
the links between IT implementation and operations performance, but also the
magnitude of every impact. The model considers IT integration as the degree of
alignment that existing technology resources in a firm have with the business
strategy, in terms of importance and support for this strategy.
Keywords: IT Integration,
Manufacturing Flexibility, Performance, Strategy, Complementarity perspective
Author: MarÃa Esther Caracuel
MartÃnez, Daniel Arias Aranda, Leopoldo Gutiérrez Gutiérrez
Journal Code: jptindustrigg160031
