Leveraging open-standard interorganizational information systems for process adaptability and alignment

Pu, Xiaodie; Chong, Alain Yee Loong; Zhao, Lim; Lim, Ming K.; Tan, Kim Hua

Abstract

Purpose
The purpose of this paper is to understand the value creation mechanisms of open-standard inter-organizational information system (OSIOS), which is a key technology to achieve Industry 4.0. Specifically, this study investigates how the internal assimilation and external diffusion of OSIOS help manufactures facilitate process adaptability and alignment in supply chain network.

Design/methodology/approach
A survey instrument was designed and administrated to collect data for this research. Using three-stage least squares estimation, the authors empirically tested a number of hypothesized relationships based on a sample of 308 manufacturing firms in China.

Findings
The results of the study show that OSIOS can perform as value creation mechanisms to enable process adaptability and alignment. In addition, the impact of OSIOS internal assimilation is inversely U-shaped where the positive effect on process adaptability will become negative after an extremum point is reached.

Originality/value
This study contributes to the existing literature by providing insights on how OSIOS can improve supply chain integration and thus promote the achievement of industry 4.0. By revealing a U-shaped relationship between OSIOS assimilation and process adaptability, this study fills previous research gap by advancing the understanding on the value creation mechanisms of information systems deployment.

Citation

Pu, X., Chong, A. Y. L., Zhao, L., Lim, M. K., & Tan, K. H. (2019). Leveraging open-standard interorganizational information systems for process adaptability and alignment. International Journal of Operations and Production Management, 39(6/7/8), 962-992. https://doi.org/10.1108/IJOPM-12-2018-0747

• Journal Article Type: Article
• Acceptance Date: Aug 7, 2019
• Online Publication Date: Sep 17, 2019
• Publication Date: Dec 2, 2019
• Deposit Date: Oct 3, 2019
• Publicly Available Date: Oct 3, 2019
• Journal: International Journal of Operations & Production Management
• Print ISSN: 0144-3577
• Publisher: Emerald
• Peer Reviewed: Peer Reviewed
• Volume: 39
• Issue: 6/7/8
• Pages: 962-992
• DOI: https://doi.org/10.1108/IJOPM-12-2018-0747
• Public URL: https://nottingham-repository.worktribe.com/output/2740742
• Publisher URL: https://www.emerald.com/insight/content/doi/10.1108/IJOPM-12-2018-0747/full/html
• Contract Date: Oct 3, 2019