Examination of effect of information sharing on businesses performance in the supply chain process

Abstract

Nowadays, supply chain management (SCM) has become one of the focal points of competition. The importance of information sharing in SCM is gradually increasing in terms of improving the business performance. In this study, an attempt to determine the effect of information sharing in the supply chain process (SCP) on cost, financial and business performance, in general, was made. The attempt was made by means of a measuring tool which is based on a theoretical approach. For this purpose, the structural equation model (SEM) was established by taking into account the supply chain structure, SCP, supply chain flexibility, environmental uncertainties and information sharing latent structures in businesses and the cost and financial performance indicators. In this study, differently from most other studies, two performance variables were included, and the model was created by defining these variables, which could be measured with more than one indicator, as latent variables. For this purpose, the data obtained from a questionnaire study performed on large firms within the scope of ISO 1000 were used. An attempt to reveal the factors affecting the cost and financial performance of businesses in SCM was made in the study. As a result of the analyses performed, the proposed SEM model was tested by taking into account various compliance criteria, and the validity and reliability of the model were determined.