IMPACT OF INFORMATION TECHNOLOGY ON INTERNAL SUPPLY CHAIN MANAGEMENT: ANANALYSIS OF RETAIL INDUSTRY OF KARACHI

Abstract

In this study, I seek to better understand the value of information technology (IT) in supply chain context. Grounded in the resource-based theory in conjunction with transaction cost economics, I developed a conceptual model that links three IT-related resources (backend integration, managerial skills, and partner support) to firm performance improvement. The model differs from previous studies by proposing a moderating effect of competition on the resource-performance relationships. Using data of 3 known retail stores, analysis indicates significant contribution of IT to supply chains, which is generated through development of the digitally enabled integration capability and manifested at the process level along the supply chain. The technological resource alone, however, does not hold the answer to IT value creation. In fact, managerial skills, which enable adaptations on supply chain processes and corporate strategy to accommodate the use of IT, are shown to play the strongest role in IT value creation. Furthermore, backend integration and managerial skills are found to be more valuable in more competitive environments. While commodity-like resources have diminishing value under competition, integrational and managerial resources become even stronger. Overall, results shed light on the key drivers of IT-enabled supply chains, and provide insights into how competition shapes IT value. The study explores the external and internal factors of IT which influence the internal supply chain management practices in superstores of Karachi. In this research I have taken questionnaire as an instrument to find out the factors of IT that influence the internal supply chain in superstores by using correlation analysis .Data has extracted from questions asked to the supply chain manager of super stores. Due to few no of stores results shows the less reliability of instrument. By using reliability analysis technique result has found which represent that instrument is reliable and also Pearson correlation analysis is use to find the relationship of variables of information technology that impact the internal supply chain management.