An empirical study of the impact of supply chain integration and information technology within the food industry

Information technology (IT) is being used to support and facilitate supply chain management (SCM) activities, especially in the food industry which has initiated programs designed to promote the use of electronic data interchange (EDI) and SCM activities. This research is an exploration of this topic, and includes the use of empirical research methodologies. The underlying questions asked in this research are: How do the uses of EDI and SCM affect the organization? and How does their use affect performance? This research uses a methodology that includes both industry case studies and a survey of companies in the food industry. The information obtained in the case studies was used as the basis of the questionnaire used in the survey. The case studies identified two different types of companies, based on the approach they take to the use of EDI. These two types are generally classified as passive and aggressive users of EDI. The two types of companies have different performance improvement expectations from the implementation of EDI. The survey of industry resulted in the identification of relevant performance measures and measures of EDI use. The data analysis revealed a classification of companies based on their interfirm coordination activities. These interfirm. coordination activities measures were then used in the correlation analysis with performance. Additionally a correlation analysis of the performance measures, interfirm coordination measures, and the degree of EDI use was performed. Findings from the study of the survey data were that companies that tracked performance from the use of EDI saw improvements in all measures of productivity. In addition, companies that used interfirm coordination with supply chain partners in specific ways felt that they received improvements, from the use of EDI, in a majority of the performance measures. Future research issues were highlighted.