Supply Chain Information Integration: Exploring the Role of Institutional Forces and Trust

Masood Nawaz Kalyar, Tahir Naveed, M. Sohaib Anwar, Kamran Iftikhar

Abstract


Purpose – The purpose of this study is to investigate the effect of institutional environment on supply chain (SC) information integration of manufacturing firms in Pakistan.

Design/Methodology/Approach – A theoretical framework is used which showing the impact of institutional forces - government support and legal protection- and trust on SC information integration within buyer and supplier firms in Pakistan. The proposed hypotheses were tested by using correlation and regression analysis based on collected data from two hundred and sixty one respondents from thirty randomly selected manufacturing firms.

Findings – The findings of the study describe the impact of institutional forces in Pakistani environment; trust has significant relationship with two elements of information integration, first is information sharing, while second is collaborative planning, which increases the efficiency of the firms. Other two institutional forces government support and legal protection have insignificant relationship with information integration within manufacturing companies of Pakistan.

Research Implications –This study helps the firms in development of collaborative planning and information sharing that increases the profits and decreases the transactional and relational cost. These profits will provide the help to minimize the loss of GDP that Pakistan is bearing 2% of the total GDP that is because of transactional and institutional cost.

Originality/Value –This study provides the information about the institutional forces that help to enhance supply chain operations by developing the information coordination within the supply chain which improve the performance of firms.

 


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