The effect of IT range and order quantity flexibility on firm performance: an empirical study

Information technology range (IT range), or the strategic information flow regarding a manufacturing firm's products, production, logistics and suppliers, has long been recognised as a key determinant of a firm's competitive advantage. Various studies also show that flexible suppliers, particularly in terms of order quantity, are important components of agile supply chains, which can be used to cope with changes faced by firms. Prior research has focused on examining each factor separately, but in a supply chain loaded with rich information, it is important for the manufacturing firm to determine how these factors co-exist and influence firm performance (e.g., flexibility). Analysing responses from 201 supply chain professionals, this research suggests that: 1) each factor correlates to the overall flexibility of a manufacturing firm; 2) the strategic information flow provided by the firm's information system moderates the effect of suppliers' order quantity flexibility on a manufacturing firm's logistics flexibilities.