IMPACT OF INFORMATION & COMMUNICATION TECHNOLOGY ON ORGANIZATIONAL PERFORMANCE WITH MEDIATING ROLE OF SUPPLY CHAIN PRACTICES: EVIDENCE FROM TEXTILE SECTOR OF KARACHI

Abstract

Purpose: In today’s world, the information and communication technology has become an integral part of all types of businesses where the organizations are facing the productivity issues. In the context ofsupply chain, this study discusses direct impact ofinformation and communication technology on organizational performance in terms of supply chain and indirect impact of information and communication technology on organizational performance with mediation of supply chain practices including logistics integration, lean manufacturing, information sharing and information quality. Methodology & Design: This study has analyzed conceptual model in textile sector of Karachi where immense application of said variables found in place. Data to conduct survey in this study was collected from managers dealing with supply chain operations in different textile companies of Karachi. Data is collected from 140 supply chain managers ofrespective industry. For the purpose of data analysis SMART-PLS software is used to test the hypotheses ofstudy. Findings: Results show that there is significant positive impact of information and communication technology on organizational performance and this relationship mediates with lean manufacturing, logistics integration and information sharing. There is insignificant mediating impact of information quality in relationship between information and communication technology and organizational performance. Limitations: Generalizability ofthis study is only towards Textile sector of Karachi and based on information and communication technology related to the supply chain model of textile sector, while organizational performance is also measured only in the context ofsupply chain. Recommendations: Textile supply chain models can performance better with application of information and communication technology by good relationship with supplier of the raw material for the manufacturing ofthe textile products. They can reduce the cost of raw materials by establishing logistics integration, by adopting lean manufacturing approaches and enhance information sharing in integration process.