MODERATING ROLES OF INFORMATION TECHNOLOGY LINK AND INFORMATION SHARING IN DRIVING SUPPLY CHAIN PERFORMANCE THROUGH SUPPLIER DEVELOPMENT AND KNOWLEDGE ABSORPTION: EMPIRICAL EVIDENCE FROM MANUFACTURING FIRMS ACROSS COUNTRIES

118 2022, XXV, 4 Business Adminis a ion and Managemen 10.15240/ ul/001/2022-4-008 MODERATING ROLES OF INFORMATION TECHNOLOGY LINK AND INFORMATION SHARING IN DRIVING SUPPLY CHAIN PERFORMANCE THROUGH SUPPLIER DEVELOPMENT AND KNOWLEDGE ABSORPTION: EMPIRICAL EVIDENCE FROM MANUFACTURING FIRMS ACROSS COUNTRIES Anh Chi Phan1, Ha Thu Nguyen2, Hao Anh Nguyen3, Yoshiki Ma sui4 1 Vie nam Na ional Uni e si y – Uni e si y o Economics and Business, School o Business Adminis a ion, Vie nam, ORCID: 0000-0002-0153-1845, [email p o ec ed]; 2 Vie nam Na ional Uni e si y – Uni e si y o Economics and Business, School o Business Adminis a ion, Vie nam, ORCID: 0000-0001-6739-6378, [email p o ec ed] (co esponding au ho ); 3 Yokohama Na ional Uni e si y, Depa men o Business Adminis a ion, Japan, ORCID: 0000-0002-2669-1538, [email p o ec ed]; 4 The Open Uni e si y o Japan, Facul y o Libe al A s, Japan, ORCID: 0000-0002-5475-5199, y[email p o ec ed]. Abs ac : Along wi h in o ma ion echnology adop ion, supply chain coo dina ion h ough in o ma ion sha ing ac i i ies has become essen ial o achie e supply chain e ec i eness and esilience. This pape p esen s he esul s o an empi ical s udy in es iga ing he mode a ing oles o in o ma ion echnology link and in o ma ion sha ing on he ela ionship be ween supplie de elopmen , knowledge abso p ion om cus ome s, and supply chain pe o mance. S a is ical echniques such as measu emen es , co ela ion analysis, and eg ession analysis a e applied o analyze he da a collec ed du ing he Round 4 o he High Pe o mance Manu ac u ing (HPM) P ojec . The da a sample includes 304 manu ac u ing plan s ope a ing in 13 coun ies including B azil, China, Finland, Ge man, I aly, Is ael, Japan, Ko ea, Spain, Sweden, Taiwan, Uni ed Kingdom, and Vie nam. Analy ical esul s indica e ha a supply chain would pe o m be e when ocal i ms in es hei e o in supplie de elopmen and knowledge abso p ion ac i i ies and de elop a s ong link wi h supplie s and cus ome s h ough in o ma ion echnology sys ems. In o ma ion echnology links wi h supplie s and cus ome s ha e signi ican mode a ing oles in s eng hening he ela ionship be ween supplie de elopmen , knowledge abso p ion om cus ome s, and supply chain pe o mance. Mo eo e , in o ma ion sha ing exchange wi h supplie s we e ound o make he associa ion be ween supplie de elopmen and supply chain pe o mance becomes mo e p onounced. The empi ical esul s con ibu e o he exis ing li e a u e o in o ma ion sha ing and supply chain coo dina ion in supply chain managemen . In addi ion, his s udy p o ides se e al p ac ical implica ions, such ha in o ma ion echnology linkage and in o ma ion sha ing ac i i ies should be conside ed as he pla o ms o o ganiza ions o in e ac wi h di e en supply chain pa ne s o achie ing high supply chain pe o mance. Keywo ds: In o ma ion echnology link, in o ma ion sha ing, supplie de elopmen , knowledge abso p ion, supply chain pe o mance. JEL Classi ica ion: M10, M11, M15. EM_4_2022.indd 118 9.1.2023 10:32:56 119 4, XXV, 2022 Business Adminis a ion and Managemen APA S yle Ci a ion: Phan, A. C., Nguyen, H. T., Nguyen, H. A., & Ma sui, Y. (2022). Mode a ing Roles o In o ma ion Technology Link and In o ma ion Sha ing in D i ing Supply Chain Pe o mance h ough Supplie De elopmen and Knowledge Abso p ion: Empi ical E idence om Manu ac u ing Fi ms ac oss Coun ies. E&M Economics and Managemen , 25(4), 118–136. h ps://doi.o g/10.15240/ ul/001/2022-4-008 In oduc ion The COVID-19 pandemic has caused u bulence ha signi ican ly shocks supply chain managemen . Rega dless o he indus y, we ha e seen he supply chain dis up ion due o ac o ies shu down, social dis ancing, es ic ions in anspo a ion, aw ma e ials shipping, and bo de closu e (Sa kis, 2020; an Hoek, 2020). Consequen ly, a esea ch end eme ged o imp o e supply chain sus ainabili y, esilience, and pe o mance (e.g., I ano & Das, 2020; Shen & Sun, 2021), which aised he impo ance o close communica ion and collabo a ion among supply chain pa ne s. Fo example, manu ac u ing i ms can imp o e supply chain lea ning h ough supplie de elopmen ac i i ies and cus ome knowledge abso p ion (Huo e al., 2020). Supplie de elopmen e e s o ups eam supply chain coo dina ion, which is he e o o ocal i ms o imp o e supplie s’ pe o mance and capabili ies o ensu e long- and sho - e m supply needs (K ause e al., 2007). Mo eo e , knowledge abso p ion om cus ome s is a necessa y downs eam ac i i y, which desc ibes a p ocess ha i ms communica e wi h e aile s o achie e in o ma ion o help ealize demand and cus ome p e e ences (B aojos e al., 2020). Bo h supplie de elopmen and knowledge abso p ion a e c i ical de e minan s o supply chain pe o mance (e.g., Luo e al., 2010; Robe s & G o e , 2014). Howe e , we ha e seen a signi ican challenge owa ds supply chain coo dina ion unde en i onmen s o high wo kplace u bulence, unce ain y, and agili y. Wi hou a su icien communica ion be ween i ms and hei pa ne s, he bene i s o supply chain coo dina ion migh no be ensu ed. Fo example, li e a u e ela ed o he da k side o business- o-business ela ionships shows ha supplie de elopmen ini ia i es can cause oppo unis ic beha iou , o i can ha m ope a ional e ec i eness due o un ealis ic goals and misma ch be ween challenges and supplie s’ cu en capaci y (Sucky & Du s , 2013; T an e al., 2021). In addi ion, elying on knowledge om a speci ic g oup o cus ome s and lacking o close in o ma ion sha ing back and o h can cause isks o ma ke myopia and loss o know-how (Gassmann e al., 2010). The e o e, he e is a need o es ablish an e ec i e in o ma ion echnology (IT) link sys em and a high le el o in o ma ion sha ing o g ea e in o ma ion a ailabili y in he supply chain (Sa kis, 2020; an Hoek, 2020). IT link is he in eg a ion in using o elec onic ools o communica e wi h key supplie s and cus ome s, hus acili a ing in o ma ion sha ing in ensi y and speed, leading o be e buye -supplie ela ionship and ope a ional pe o mance (Baihaqi & Sohal, 2013). This s udy has wo main objec i es. Fi s , he au ho s would like o e i y he impac o supplie de elopmen and knowledge abso p ion om cus ome s ac i i ies on supply chain pe o mance. Ra he han es ing he e ec o hose p ac ices sepa a ely (Ca & Kaynak, 2007; K ause e al., 2007; S o ey & La big, 2017), we in eg a e hem in o a single model o p o ide a holis ic iew o how ocal i ms imp o e supply chain pe o mance by in e ac ing wi h bo h ups eam and downs eam pa ne s. Second, we p opose ha IT link and le el o in o ma ion sha ing should be signi ican ounda ions o s eng hening he ela ionship be ween supply chain coo dina ion and supply chain pe o mance. Al hough p e ious s udies ha e indica ed he c i ical ole o IT capaci y on supply chain pe o mance (e.g., P ajogo & Olhage , 2012), he unde lying mechanism is mo e complica ed since i migh depend on how compa ible in o ma ion sys ems a e among chain membe s and how a i m de elops capabili ies o p ocess sha ed in o ma ion e ec i ely. Thus, a emp s o ill he esea ch gaps by answe ing he esea ch ques ion: could IT link and in o ma ion sha ing wi h/by supplie s and cus ome s acili a e he e ec o supplie de elopmen and knowledge abso p ion on supply chain pe o mance? The emainde o his s udy is as ollows. The ollowing sec ion p o ides a li e a u e e iew on supply chain pe o mance, supplie de elopmen , knowledge abso p ion, IT link, EM_4_2022.indd 119 9.1.2023 10:32:56 120 2022, XXV, 4 Business Adminis a ion and Managemen and in o ma ion sha ing. Subsequen ly, he hypo hesis de elopmen and concep ual model a e p esen ed, ollowed by he me hodology sec ion includes da a collec ion, measu es, and analysis p ocedu e. Then, we p o ide he analysis esul o alida e hypo heses. Based on he indings, discussion and implica ions a e d awn. Finally, we discuss se e al limi a ions and u u e esea ch di ec ions. 1. Li e a u e Re iew 1.1 Supply Chain Pe o mance Supply chain pe o mance e e s o he e ec i eness and e iciency o a supply chain, which is s ongly in luenced by supplie pe o mance in quali y, deli e y, esponsi eness, cos , and echnical suppo (Wu e al., 2014). Supplie s ha e become essen ial pa ne s o manu ac u e s in echnical inno a ion, p oduc de elopmen , quali y imp o emen , a he han me ely ma e ial deli e e s (K ause e al., 2007). A low-pe o mance o dissa is ied supplie would in luence he pe o mance o all supply chain membe s by c ea ing a bullwhip e ec . Speci ically, supplie s who p o ide low-quali y ma e ials cause a highe de ec a e in buye s’ p oduc ion, leading o lowe sales and cus ome sa is ac ion. Mo eo e , unsa is ied pa ne s end o exi he exis ing ela ionship, hence incu ing a highe cos o ocal i ms o ind o he sui able supplie s. Thus, well-pe o ming supplie is a key o main aining supply chain sus ainabili y and sa is ac ion. De e minan s o supply chain pe o mance ha e been s udied in ensi ely in he li e a u e. The e is a consensus ha supply chain in eg a ion should be a key o enabling a cen alized managemen app oach ac oss he alue ne wo k, hus imp o ing in o ma ion sha ing and supply chain pe o mance (Koçoğlu e al., 2011; Shee e al., 2018). Chau e al. (2021) indica ed ha supply chain collabo a ion, p ocess in eg a ion, cus ome ocus oge he wi h an e ec i e in o ma ion echnology sys em a e c i ical success ac o s o supply chain quali y. Unde an unce ain and dynamic business en i onmen ha equi es collabo a ion and inno a ion, supplie de elopmen is a co e p ac ice helping ocal i ms communica e and con inually enhance hei supplie s’ capabili ies (Saghi i & Wilding, 2021). Mo eo e , knowledge om cus ome s (e.g., demand, ma ke in o ma ion, e c.) is also essen ial o i ms in s a egic decision-making, he eby coo dina ing wi h ups eam pa ne s o adjus s a egic goals, hus leading o be e supply chain pe o mance (Huo e al., 2020; S o ey & La big, 2017). 1.2 Supplie De elopmen : Concep s and Ou comes The concep o supplie de elopmen has been discussed in supply chain managemen li e a u e o indica e manu ac u e s’ e o o es ablish a iable ne wo k o supplie s and enhance supplie s’ pe o mance. I eme ged in esponse o a need o de elop a coope a i e buye - supplie ela ionship o bene i supply chain ac i i ies and c ea e o ganiza ional compe i i e ad an age (Lee e al., 2018). Speci ically, he ecip ocal in e dependence among componen s p o ide s and inal assemble s in indus ies ha p oduce complex p oduc s became c ucial. Some examples o he indus y, o name bu a ew, include au omobiles, elec onics, and machine y indus y (K ause e al., 2007), which a e he a ge indus ies in his s udy. The p ac ice o supplie de elopmen has been s a ed in Japanese companies such as Toyo a and Honda, hen sp ead ou o o he coun ies as a s a egic weapon o buying i ms (Gla ee-Geo, 2019). In mo e de ail, when he i ms in es in de eloping supplie capabili ies, in ol ed in knowledge exchange, implemen ing go e nance mechanisms, bo h buye and supplie can gain supe no mal p o i (K ause e al., 2007). Li e a u e sugges s ha supplie de elopmen is a way o achie e long- e m supplie s’ ela ionships; he e o e, a supply chain can be bene icial o lowe cos , be e quali y and lexibili y, and eliable deli e y (K ause e al., 2007; Lee e al., 2018). Mo eo e , e icien supplie de elopmen ini ia i es can lead o highe supplie sa is ac ion and supplie pe o mance and acili a e new p oduc de elopmen p ocesses (Gla ee- Geo, 2019; Modi & Mabe , 2007). Howe e , se e al s udies e en ound nega i e impac o supplie de elopmen such as oppo unism (T an e al., 2021) and ope a ional de iciency (Sucky & Du s , 2013) due o lacking o app op ia e mechanism and pla o m o close communica ion (K ause e al., 2007). 1.3 Knowledge Abso p ion om Cus ome s: Concep s and Ou comes Knowledge abso p ion om cus ome s is how a manu ac u ing i m lea ns om i s cus ome s EM_4_2022.indd 120 9.1.2023 10:32:57 121 4, XXV, 2022 Business Adminis a ion and Managemen du ing he new p oduc de elopmen p ocess, in e ms o p oduc knowledge, echnology, demands, pu chasing his o y, and o he s (Salojä i e al., 2010). To ul il cus ome s’ needs and be mo e esponsi e o he ma ke , exploi ing cus ome s’ knowledge o acili a e in e nal lea ning has become a po en ial sou ce o compe i i e ad an age. A ocal i m can abso b cus ome s’ knowledge by in ol ing cus ome s in i s ope a ions (e.g., designing p ocess) a he han jus ga he ing eedback by adi ional ma ke esea ch (S o ey & La big, 2017). Nguyen and Ha ison (2018) used he e m “cus ome le e age” o desc ibe a i m’s capabili y o ob ain and u ilize knowledge om cus ome s in de eloping new p oduc s and se ices. O he e ms a e used o desc ibe he cus ome knowledge managemen p ocess, such as cus ome ela ionship managemen , cus ome in imacy, and cus ome e e ences. Su p isingly, o some ex en , he e is an inconsis ency among p e ious s udies ega ding he ou comes o cus ome in ol emen , collabo a ion, and in eg a ion. Many wo ks ha e con i med he posi i e e ec o he acquisi ion o cus ome s’ knowledge (e.g., Huo e al., 2020; Nguyen & Ha ison, 2018; Phan e al., 2020). Howe e , se e al s udies e en poin ed ou he opposing sides o cus ome in eg a ion in he p ocess o de eloping and comme cializing new p oduc s (e.g., Gassmann e al., 2010). Speci ically, elying on knowledge and in o ma ion om a pa icula g oup o cus ome s can make i ms oo dependen on speci ic cus ome s’ in e es s, leading o se ing a niche ma ke only. Gassmann e al. (2010) no ed ha cus ome in eg a ion causes a isk o loss o know-how, as some knowledgeable cus ome s migh use he o ganiza ion’s in ellec ual p ope ies o hei pe sonal pu poses. The e o e, he inconsis en indings emphasize he impo ance o mode a ing ac o s in he ela ionship be ween cus ome s’ knowledge abso p ion and pe o mance, such as de eloping an in eg a ed IT in as uc u e and equen ly sha ing in o ma ion (B aojos e al., 2020). 1.4 IT Link and In o ma ion Sha ing as Pla o ms o Supply Chain Coo dina ion The highly compe i i e and unce ain business en i onmen leads o he necessi y o collabo a ion wi h ex e nal pa ne s o ensu e supply chain pe o mance. Howe e , communica ion ac oss he supply chain, also managing knowledge abso bed om supply chain pa ne s, equi es o ganiza ional capabili ies o linking IT sys ems and sha ing in o ma ion wi h i s pa ne s (B aojos e al., 2020; an Hoek, 2020). IT is de ined as he applica ion o simila au oma ed sys ems o compu e - o-compu e links wi hin o be ween i ms and supply chain pa ne s (P ajogo & Olhage , 2012). I has become a c ucial pa o supply chain managemen (SCM) o pa icipa e in knowledge and capabili ies sha ing. In e nally, IT in eg a ion p o ides se e al bene i s such as agili y, ansac ion managemen e iciency, and as decision-making, leading o highe e iciency in R&D and new p oduc de elopmen . Ex e nally, IT c ea es a unique alue chain, helping ocal i ms o collabo a e wi h supplie s o on- ime deli e y o communica e in o ma ion om cus ome s o become mo e esponsi e. I he IT is linked ac oss he supply chain ega ding simila i y, connec i i y, and compa ibili y, i will enhance supply chain e iciency because o collabo a ion h ough in o ma ion sha ing, coo dina ion, moni o ing, and join decision making (Ye & Wang, 2013). While IT link is a pla o m o communica ion, he ype o in o ma ion sha ed ac oss he supply chain also plays an essen ial ole. Supply chain in o ma ion sha ing e e s o he ac ions ha make in o ma ion a ailable o o he chain membe s (Li e al., 2019). This is an ine i able p ac ice o mi iga e supply chain unce ain y, including deli e y delays, machine b eakdowns, and o de luc ua ions (Jeong & Hong, 2017). In o ma ion sha ing be ween manu ac u e , supplie , and cus ome can be ac ical (e.g., pu chasing and logis ics) o s a egic (e.g., long- e m ela ionship objec i es and cus ome in o ma ion). In o ma ion sha ing has been p o ed o be signi ican in d i ing se e al ypes o pe o mance. I enables ocal i ms o access a ious in o ma ion such as sales, p oduc ion, and logis ics, hence imp o ing isibili y, as well as educing cos and imp o ing inancial pe o mance (Şahin & Topal, 2018). Mo eo e , in o ma ion sha ing allows i ms o collabo a e closely wi h hei supplie s and cus ome s, he eby de eloping us and a be e long- e m ela ionship. This long- e m ela ionship leads o a sho e lead ime and o de ul ilmen cycle, a as e and high-quali y new p oduc de elopmen p ocess (B aojos e al., 2020). EM_4_2022.indd 121 9.1.2023 10:32:57 122 2022, XXV, 4 Business Adminis a ion and Managemen Au ho IT link concep ualiza ion In o ma ion sha ing concep- ualiza ion Da a collec ion and sample Da a analysis Main indings Phung e al. (2021) IT link wi h supplie s In o ma ion sha ing wi h supplie s 304 manu ac u ing i ms om 13 coun ies Se ial-mul iple media ion analysis IT link wi h supplie s and in o ma ion sha ing wi h supplie s media e he ela ionship be ween supply chain p ocess in eg a ion and upwa d supply chain pe o mance Sund am e al. (2020) IT applica ions (e.g., online ansac ion, websi e sys em, CRM, e c.) adop ion In o ma ion sha ing wi h and by ading pa ne s 112 manu ac u ing i ms in Malaysia S uc u al equa ion modeling IT imp o es in o ma ion sha ing, leading o a highe le el o supply chain in eg a ion and supply chain pe o mance Maskey e al. (2019) Elec onic linkages be ween ading pa ne s Ope a ional in o ma ion sha ing and s a egic in o ma ion sha ing 131 supply chain pa icipan s in Nepal Explo a o y ac o analysis and pa h analysis Se e al ac o s a e con i med as de e minan s o supply chain in o ma ion sha ing, o example, supply ne wo k con igu a ion, o ganiza ional capabili y, commi men Pham e al. (2019) In-house and logis ics sys ems, a sys em o cus ome s o book online, ack shipmen , and make paymen In o ma ion sha ing, including ope a ional, capabili y- ela ed, s a egic plan, and compe i i e in o ma ion 14 pa icipan s om 11 small- o-medium local se ice p o ide s and Vie nam Logis ics Associa ion Da a analysis o in-dep h in e iews Mos i ms sha e ope a ional in o ma ion h ough adi ional communica ion channels and lack an in eg a ed sys em Vanpoucke e al. (2017) Using o elec onic ools o connec wi h supplie s and cus ome s In o ma ion exchange in e ms o in en o y, p oduc ion planning, demand o ecas wi h key supplie s and cus ome s 563 companies in 20 coun ies Cons ained non-linea eg ession analysis IT use mode a es he impac o in o ma ion exchange on ope a ional in eg a ion; he use o IT is s onge o ups eam in eg a ion Baihaqi and Sohal (2013) In eg a ed IT sys em including da abase, p oduc ion planning, and in e ne In o ma ion sha ing wi h/by supplie s and cus ome s 150 Aus alian manu ac u ing companies Reg ession analysis by using s uc u al equa ion modeling (SEM) In eg a ed IT posi i ely impac s in o ma ion sha ing in ensi y, leading o be e buye - supplie ela ionships and ope a ional pe o mance Ye and Wang (2013) How IT in as uc u e is aligned wi h supply chain pa ne s ega ding simila i y, connec i i y, and compa ibili y In o ma ion sha ing wi h supplie s, including o de p ocessing, in en o y, p oduc ion capaci y planning, and o de o ecas ing 141 Chinese manu ac u e s - es , psychome ic es , eg ession analysis using SEM In o ma ion sha ing media es he ela ionship be ween IT alignmen and ope a ional pe o mance P ajogo and Olhage (2012) Elec onic links wi h supplie s, which include IT-enabled ansac ion p ocessing, acking shipmen s, elec onic ans e o o de s, unds, and in oices In o ma ion sha ing wi h supplie s and in o ma ion sha ing by supplie s 232 Aus alian i ms Reg ession analysis using SEM In o ma ion echnology and in o ma ion sha ing signi ican ly imp o e logis ic in eg a ion, imp o ing ope a ional pe o mance Koçoğlu e al. (2011) A common IT in as uc u e o acili a e ansac ions, communica ion wi hin o ganiza ions and among supply chain pa ne s In o ma ion sha ing wi h cus ome s and supplie s, and in o ma ion sha ing be ween unc ions o he o ganiza ion 158 manu ac u ing i ms in Tu key Explo a o y ac o analysis, eg ession analysis using Pa ial Leas -Squa es (PLS) – based SEM Supply chain in eg a ion acili a es in o ma ion sha ing by p o iding connec edness and collabo a ion among membe s; be e in o ma ion sha ing imp o es supply chain pe o mance Sou ce: own Tab. 1: Recen li e a u e o IT link and in o ma ion sha ing in supply chain EM_4_2022.indd 122 9.1.2023 10:32:58 123 4, XXV, 2022 Business Adminis a ion and Managemen The empi ical e idence ela ed o he e ec o in o ma ion echnology and in o ma ion sha ing in supply chain managemen is summa ized in Tab. 1. The abo e li e a u e e iew shows ha i is essen ial o conside IT link and in o ma ion sha ing as echnological bases o ensu e supply chain coope a ion and in eg a ion. Howe e , di ec e ec o IT and in o ma ion sha ing migh ail o explain why he e is a di e ence in pe o mance imp o emen among i ms when he e is a simila adop ion o IT and in o ma ion sha ing. We p opose ha supply chain coo dina ion, which includes supplie de elopmen and knowledge abso p ion om cus ome s, would play di ec in luence oles, while IT and in o ma ion sha ing a e necessa y mode a o s o s eng hen hose in luences. 2. Hypo heses De elopmen and Concep ual Model 2.1 Role o Supplie De elopmen and Knowledge Abso p ion in Supply Chain Pe o mance Since supplie de elopmen ac i i ies enhance he coo dina ion be ween buye s and supplie s, a posi i e impac on bo h sides can be expec ed. Speci ically, collabo a i e ac i i ies, including gi ing eedback, aining om buye s, can assis supplie s in imp o ing hei pe o mance (K ause e al., 2007). When supplie pe o mance is imp o ed, ocal i ms will be bene icial om high-quali y ma e ials, on- ime deli e y, and be e in en o y managemen . P e ious s udies showed ha supplie de elopmen helps he i m educe he supply base, hen imp o es inancial pe o mance such as cos and e enue, and non- inancial pe o mance such as p oduc quali y, collabo a i e p oduc de elopmen , and cus ome se ice (Luo e al., 2010). The e o e, supplie capabili ies imp o emen ega ding echnical, quali y, deli e y, and cos pe o mance is one o he equi emen s o build a compe i i e ad an age in he supply chain, i.e., o mee he uns able ma ke demand (Ca & Kaynak, 2007). Mo e impo an ly, close in e ac ion wi h supplie s ensu es good supplie ela ionships and de elops supply chain agili y in case ups eam ac i i ies ha e o be adap ed o any change om downs eam (T ipa hy e al., 2016). The e o e, we p opose he i s hypo hesis as ollow: H1: Supplie de elopmen is posi i ely ela ed o supply chain pe o mance. Cus ome ela ionship was a gued as a key o s a egic decision-making, p o iding new oppo uni ies o alue c ea ion and imp o ing supply chain compe i i e ad an age (Salojä i e al., 2010; T ipa hy e al., 2016). As such, i ms should collec imely and eliable cus ome in o ma ion (Chau e al., 2021). G o e and Kohli (2012) indica ed ha knowledge abso p ion om e aile s (e.g., analy ical planning, o e- cas ing, eplenishmen ) would help i ms ealize cyclical luc ua ion in cus ome s’ demand and p e e ences so ha hey can adjus and p o ide be e cus ome se ices. Knowledge abso p ion om cus ome s also helps ups eam i ms o de elop cus ome agili y o be e sensing ma ke oppo uni ies (Robe s & G o e , 2014). Thus, building an IT in e ac ion pla o m o cus ome s such as web-based cus ome in as uc u e oge he wi h he i m’s analy ical abili y will acili a e knowledge-c ea ing, he e o e enhancing he i m’s compe i i e ad an age. Lead use s who a e p oduc -sa y may e en in ol e in he idea gene a ion s age o he new p oduc de elopmen p ocess o p o ide cus ome knowledge, con ibu ing o he lexibili y and success o new p oduc launches (S o ey & La big, 2017). In gene al, cus ome knowledge imp o es sensing and imp o ising capabili ies, educes unce ain y, and enhances supply chain pe o mance. The e o e, he second hypo hesis is s a ed as: H2: Knowledge abso p ion om cus ome s is posi i ely ela ed o supply chain pe o mance. 2.2 Mode a ing Role o IT Link and In o ma ion Sha ing Supply chain coo dina ion equi es an in eg a ed IT sys em o ob ain be e eal- ime in o ma ion in ensi y and quali y (Baihaqi & Sohal, 2013; P ajogo & Olhage , 2012). Speci ically, IT alignmen allows coo dina ing ac i i ies wi h supply chain pa ne s, such as o ecas ing and scheduling ope a ions, ega dless o ime and spa ial dis ance. Fo supplie s, i ms can seamlessly sha e o de in o ma ion, ope a ional in o ma ion, s a egies, and compe i ion in o - ma ion. In u n, hey can ask supplie s o cos in o ma ion, deli e y in o ma ion, o any change in enginee ing in o ma ion (P ajogo & Olhage , 2012). I he e is supplie in eg a ion, i ms a e mo e willing o implemen supplie EM_4_2022.indd 123 9.1.2023 10:32:58 124 2022, XXV, 4 Business Adminis a ion and Managemen de elopmen ac i i ies (Jin e al., 2019). Fo cus ome s, he IT link helps i ms con inuously unde s and cus ome demand (Fawce e al., 2007). Mo eo e , cus ome s wi h echnical knowledge can moni o he p oduc ion o hei o de s (Ye & Wang, 2013). In gene al, IT link wi h supplie s and cus ome s leads o be e connec i i y, acili a ing coo dina ing ac i i ies among supply membe s so ha manage s ac oss o ganiza ional bounda ies can decide in a as e and mo e collabo a i e way. I leads us o he ollowing wo hypo heses: H3a: IT link wi h supplie s s eng hens he ela ionship be ween supplie de elopmen and supply chain pe o mance. H4a: IT link wi h cus ome s s eng hens he ela ionship be ween knowledge abso p ion om cus ome s and supply chain pe o mance. Willingness and abili y o de elop supplie s depend signi ican ly on he us and commi men o ocal i ms in he ela ionship wi h speci ic supplie s. The e o e, manu ac u e s a e mo e likely o selec and de elop supplie s wi h a highe willingness o sha e in o ma ion because i inc eases unde s anding o supplie s’ si ua ions (Ca & Kaynak, 2007). As long- e m o ien a ion is de eloped, i acili a es di ec in e ac ion (e.g., on-si e isi , join p oblem sol ing) ha c ea es alue o bo h buye s and supplie s whene e p oblems occu . In o ma ion sha ing can be conside ed a pla o m o knowledge ans e , which dissemina es implici knowledge o help bo h pa ies ackle p oblems in he p oduc ion p ocess (Lee e al., 2018; Modi & Mabe , 2007). Chen e al. (2018) a gued ha supplie de elopmen and knowledge managemen ac i i ies a e in e dependen and need o be implemen ed simul aneously o achie e desi ed ou comes. Thus, highe in o ma ion sha ing wi h and by supplie s suppo s he supplie de elopmen ac i i ies, imp o ing supplie capabili ies and pe o mance in e ms o high- quali y ma e ials, lowe -cos o e ing, on- ime deli e y. We p opose he ollowing hypo heses: H3b: In o ma ion sha ing by supplie s s eng hens he ela ionship be ween supplie de elopmen and supply chain pe o mance. H3c: In o ma ion sha ing wi h supplie s s eng hens he ela ionship be ween supplie de elopmen and supply chain pe o mance. The knowledge-based iew sugges s ha knowledge is a c i ical asse o an o ganiza ion o c ea e alue, aising he impo ance o how ocal i ms acqui e ex e nal knowledge and gene a e new alues o cus ome s (Nguyen & Ha ison, 2018). In o ma ion sha ing by cus ome s p o ides insigh s o cus ome beha iou ; he e o e, hey Fig. 1: Analy ical amewo k Sou ce: own EM_4_2022.indd 124 9.1.2023 10:33:00 125 4, XXV, 2022 Business Adminis a ion and Managemen can imp o e he p oduc de elopmen p ocess and enhance cus ome sa is ac ion. Acqui ing in o ma ion sha ing om he cus ome is an ini ial s age o c ea ing a lea ning o ganiza ion, in which he acqui ed in o ma ion is assimila ed o comme cial exploi a ions (Huo e al., 2020). Mo eo e , equen sha ing wi h cus ome s and ecei ing in o ma ion om hem encou age discussion among agen s and expe s, making i easie o i ms o compa e hen in eg a e new knowledge in o an exis ing knowledge base, as well as ensu ing in o ma ion anspa ency (B aojos e al., 2020). As a esul , lexibili y pe o mance is imp o ed as he decision-making p ocess can be adjus ed quickly ac oss he supply chain. Final hypo heses a e a gued as ollow: H4b: In o ma ion sha ing by cus ome s s eng hens he ela ionship be ween knowledge abso p ion and supply chain pe o mance. H4c: In o ma ion sha ing wi h cus ome s s eng hens he ela ionship be ween knowledge abso p ion and supply chain pe o mance. All hypo heses a e illus a ed in he ana ly- ical amewo k p esen ed in Fig. 1. 3. Me hodology 3.1 Da a Collec ion Da a in his s udy a e u ilized om a ques ionnai e su ey o High Pe o mance Manu ac u ing (HPM) p ojec . This p ojec was ini ia ed as join esea ch in he 1980s by g oup o academicians in he Uni ed S a es, ocusing on manu ac u ing i ms in 3 indus ies: elec ical & elec onics, machine y, and au omobile. HPM p ojec aims o de e mine bes p ac ices in he manu ac u ing indus y o achie e high pe o mance in a global compe i ion (Sch oede & Flynn, 2001). Du ing 1990s–2010s, he e was a g ea in ol emen o in e na ional expe s and esea che s o de elop a heo e ical backg ound and ques ionnai e su ey. The HPM P ojec collec ed in o ma ion in a ious aspec s such as manu ac u ing s a egy, supply chain managemen , quali y managemen , human esou ce managemen , knowledge managemen , and so on. Based on business and ade jou nals and inancial in o ma ion, he esea che s iden i ied and selec ed manu ac u e s o be su eyed in each coun y. While he i s su ey conduc ed in 1980s ocused on 46 manu ac u ing plan s in he US, he second su ey was ex ended o 146 manu ac u ing plan s in Ge man, I aly, Japan, he UK, and he US in 1990s. The hi d su ey in 2000s in ol ed o he coun ies such as Aus ia, Finland, Ko ea, Spain, and Sweden o join he p ojec wi h o al 266 plan s. Based on his HPM da abase, a la ge numbe o in e na ional publica ions was made o highligh he impac s o manu ac u ing pe o mance on pe o mance o manu ac u ing plan s om di e en aspec s (Flynn e al., 2016; Phan e al., 2020). This s udy analyses da a in Round 4 o he HPM p ojec , which we e collec ed du ing 2013–2015. The sample includes 304 plan s in 13 coun ies: B azil (24), China (30), Finland (17), Ge man (28), I aly (29), Is ael (26), Japan (22), Ko ea (26), Spain (25), Sweden (9), Taiwan (30), Uni ed Kingdom (13), and Vie nam (25). The HPM su ey asked pa icipan s om 12 posi ions in each plan , including plan supe in enden s, manage s, supe iso s, engi- nee s, e c. Da a use in his s udy collec ed om 2 posi ions: ques ion i ems ela ed wi h cus ome s we e e alua ed by downs eam supply chain manage s and ques ion i ems ela ed wi h supplie s we e e alua ed by ups eam supply chain manage s. By collec ing da a om mul iple sou ces, we could educe he pe cep ual bias, ensu e he independence among a iables he eliabili y o causal ela ionships by linea eg ession analysis a bo h downs eam and ups eam le el. Mo eo e , his s udy uses scales ela ed o supply chain coo dina ion, in o ma ion echnology link and in o ma ion sha ing, in which we p ima ily es he mode a ing oles o bo h downs eam and ups eam IT link and in o ma ion sha ing on he ela ionship be ween supplie de elopmen and knowledge abso p ion om cus ome s on supply chain pe o mance. 3.2 Measu emen The measu emen scales we e de eloped based on heo e ical e iew and adap ed om p e ious esea ch in supply chain managemen (e.g., Li e al., 2019; Paul aj & Chen, 2007; Vanpoucke e al., 2017), which ensu e he con en alidi y o he measu emen . Re iewing and adap ing measu emen scales om p e ious li e a u e helps o consolida e he linea i y o ela ionships be ween a iables used in he concep ual model, which s eng hens he eliabili y o using linea eg ession analysis. A i e-poin Like scale was used o measu e he esponden ’s judgmen by sco ing each i em om 1 o 5. The esponden s a e manu ac u ing plan ep esen a i es wo king in he ields EM_4_2022.indd 125 9.1.2023 10:33:01 126 2022, XXV, 4 Business Adminis a ion and Managemen o Ups eam Supply Chain Managemen ( o answe ques ions ela ed o supplie s), Downs eam Supply Chain Managemen ( o answe ques ions ela ed o cus ome s). The measu emen i ems a e p o ided in he Appendix (Tab. A1). 3.3 Da a Analysis P ocedu e Da a a e analysed by using he SPSS 22.0 so wa e. Fi s , measu emen es is execu ed o check he scale eliabili y and alidi y. Also, he da a we e checked o make ce ain ha i mee s all condi ions o pe o m linea eg ession analysis. Second, we implemen co ela ion analysis o obse e he bi a ia e associa ion be ween a iables. Subsequen ly, di ec ela ion ships a e es ed by pe o ming linea eg ession, and mode a ing e ec is es ed by using he PROCESS mac o de eloped by Hayes (2017). Finally, we use - es o assess he di e ence be ween coun ies ega ding adop ing IT link, in o ma ion sha ing, supplie de elopmen , and knowledge abso p ion. 4. Resul 4.1 Measu emen Tes Ini ially, each a iable in he da a sample was checked o ensu e ha linea eg ession analysis can be conduc ed. Fo example, using echniques such as Du bin-Wa son es , no mali y es and sca e plo , he ou lie condi ion, e o s independence, homoscedas ici y among a iables, as well as no mal dis ibu ed condi ion a e checked o be sa is ac o y o u he analysis. Then, measu emen es was implemen ed o ensu e eliabili y and alidi y o collec ed da a as ollows:  Reliabili y es : C onbach’s alpha indices o all scales ha e o be g ea e han 0.6 o sa is y he in e nal consis ency be ween i ems wi hin cons uc s.  Con en alidi y: Ex ensi e li e a u e e iew has been done o ensu e ha all concep s ha e a solid scien i ic ounda ion.  Cons uc alidi y: Fac o analysis is pe o med o es he alidi y wi hin a cons uc . In o he wo ds, i is o ensu e wi hin-cons uc i ems a e one-dimensional. Se e al c i e ia should be sa is ied, including pe cen age o a iance is g ea e han 0.5, Eigen alues a e la ge 1, and ac o loadings a e g ea e han 0.5. The ac o loadings o all i ems a e p o ided in he Appendix (Tab. A1). The esul o he measu emen es is p o ided in Tab. 2 indica ing ha all es s a e sa is ied, and he da a a e eliable and alida ed. Fac o Min Max Mean S anda d de ia ion C onbach’s alpha Eigen alues Pe cen age o a iance Supplie de elopmen 2.33 5.00 3.89 0.61 0.801 3.031 50.522 Knowledge abso p ion om cus ome s 1.00 5.00 3.63 0.74 0.869 3.295 65.902 IT link wi h supplie s 1.00 5.00 3.37 1.01 0.839 2.716 67.902 In o ma ion sha ing by supplie s 1.00 5.00 3.40 0.88 0.886 3.888 64.802 In o ma ion sha ing wi h supplie s 1.00 5.00 3.21 0.99 0.920 5.138 64.229 IT link wi h cus ome s 1.00 5.00 3.03 1.04 0.858 2.820 70.509 In o ma ion sha ing by cus ome s 1.00 5.00 2.94 0.94 0.858 3.189 63.784 In o ma ion sha ing wi h cus ome s 1.00 5.00 3.15 0.95 0.911 4.955 61.939 Supply chain pe o mance 1.88 5.00 3.86 0.54 0.873 4.299 53.738 Sou ce: own Tab. 2: Measu emen es esul s EM_4_2022.indd 126 9.1.2023 10:33:01 133 4, XXV, 2022 Business Adminis a ion and Managemen Chain In eg a ion, owa ds Supply Chain Pe o mance and Fi m Pe o mance. 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In e na ional Jou nal o Ope a ions & P oduc ion Managemen , 37(4), 510–530. h ps://doi.o g/10.1108/ijopm-07-2015-0441 Wu, I.-L., Chuang, C.-H., & Hsu, C.-H. (2014). In o ma ion sha ing and collabo a i e beha io s in enabling supply chain pe o mance: A social exchange pe spec i e. In e na ional Jou nal o P oduc ion Economics, 148, 122–132. h ps://doi.o g/10.1016/j.ijpe.2013.09.016 Ye, F., & Wang, Z. (2013). E ec s o in o ma ion echnology alignmen and in o ma ion sha ing on supply chain ope a ional pe o mance. Compu e s & Indus ial Enginee ing, 65(3), 370–377. h ps://doi.o g/ 10.1016/j.cie.2013.03.012 EM_4_2022.indd 133 9.1.2023 10:33:04 134 2022, XXV, 4 Business Adminis a ion and Managemen APPENDIX Tab. A1 p esen s scale measu emen and ac o analysis esul in alidi y es . The ac o loading o each i em is also p o ided. Scale Sou ces I ems Fac o loading Supplie de elopmen Ca and Kaynak (2007); K ause e al. (2007) 1. We p o ide ou supplie s wi h su icien echnical assis ance 0.66 2. We hold egula mee ings o exchange imp o emen ideas wi h ou supplie s 0.62 3. We encou age ou supplie s o con inuously imp o e hei p oduc ion p ocesses 0.72 4. I necessa y, we ask ou supplie s o in es in signi ican p ocess imp o emen 0.64 5. We o e he necessa y aining o ou supplie s 0.75 6. We sha e ou ision and supply chain policy wi h ou key supplie s 0.72 7. As ou supplie s s i e o imp o e hei p ocesses, we p o ide assis ance 0.72 In o ma ion echnology links wi h supplie s Vanpoucke e al. (2017); Paul aj and Chen (2007) 1. Ou in o ma ion sys em is elec onically connec ed wi h hose o ou key supplie s 0.84 2. We use in o ma ion echnology enabled ansac ion p ocessing wi h ou key supplie s 0.90 3. We use elec onic ans e o pu chase o de s, in oices and/o unds o ou key supplie s 0.80 4. We use in o ma ion echnology ( o example, RFID o PIDT) o ack and/o expedi e shipmen s o ou key supplie s 0.75 In o ma ion sha ing by supplie s Vanpoucke e al. (2017); Baihaqi and Sohal (2013) Ou plan has access o he ollowing in o ma ion abou ou key supplie s: 1. Cos in o ma ion This i em was excluded 2. Deli e y in o ma ion 0.80 3. Demand change in o ma ion 0.91 4. Demand o ecas in o ma ion 0.90 5. In en o y in o ma ion This i em was excluded 6. P oduc ion capaci y in o ma ion 0.79 7. P oduc i i y in o ma ion This i em was excluded 8. Quali y in o ma ion This i em was excluded 9. Schedule in o ma ion 0.80 10. Sensi i e in o ma ion (e.g., inancial in o ma ion, p op ie a y p ocess in o ma ion, e c.) 0.61 Tab. A1: Scale measu emen and ac o loading – Pa 1 EM_4_2022.indd 134 9.1.2023 10:33:04 135 4, XXV, 2022 Business Adminis a ion and Managemen Scale Sou ces I ems Fac o loading In o ma ion sha ing wi h supplie s P ajogo and Olhage (2012); Ye and Wang (2013); Baihaqi and Sohal (2013) Ou key supplie s ha e access o he ollowing in o ma ion abou ou plan : 1. Cos in o ma ion This i em was excluded 2. Deli e y in o ma ion 0.80 3. Demand change in o ma ion 0.73 4. Demand o ecas in o ma ion This i em was excluded 5. In o ma ion abou plan manu ac u ing capabili ies 0.81 6. In en o y in o ma ion 0.82 7. P oduc ion capaci y in o ma ion 0.87 8. P oduc i i y in o ma ion 0.80 9. Quali y in o ma ion 0.82 10. Schedule in o ma ion 0.75 11. Sensi i e in o ma ion (e.g., inancial in o ma ion, p op ie a y p ocess in o ma ion, e c.) This i em was excluded Knowledge abso p ion om cus ome s S o ey and La big (2017); Salojä i e al. (2010) 1. We ob ain a g ea amoun o ou p oduc knowledge om ou cus ome s 0.81 2. Ou cus ome s p o ide us wi h aluable in o ma ion on p oduc inno a ion 0.81 3. We ha e lea ned a lo om ou cus ome s as pa o ou p oduc de elopmen p ocess 0.86 4. We quickly adop new echnologies by applying wha we lea n om ou cus ome s 0.80 5. We sys ema ically check whe he we ha e applied he knowledge we acqui e om ou cus ome s ega ding ou p oduc s 0.76 In o ma ion echnology links wi h cus ome s Vanpoucke e al. (2017); Paul aj and Chen (2007) 1. Ou in o ma ion sys em is elec onically connec ed wi h hose o ou cus ome s 0.86 2. Ou cus ome s use in o ma ion echnology enabled ansac ion p ocessing wi h ou plan 0.90 3. Ou cus ome s use elec onic ans e o pu chase o de s, in oices and/ o unds o us 0.83 4. Ou cus ome s use in o ma ion echnology (e.g., RFID o PIDT) o ack and/o expedi e shipmen s o ou plan 0.76 In o ma ion sha ing by cus ome s Li e al. (2019); Vanpoucke e al. (2017); Paul aj and Chen (2007) Ou plan has access o he ollowing in o ma ion abou ou key cus ome s: 1. Demand change in o ma ion 0.71 2. Demand o ecas in o ma ion This i em was excluded 3. In en o y in o ma ion 0.85 4. P oduc ion schedule in o ma ion 0.79 5. P oduc i i y in o ma ion 0.86 6. Sensi i e in o ma ion (e.g., inancial in o ma ion, p op ie a y p ocess in o ma ion, e c.) 0.77 Tab. A1: Scale measu emen and ac o loading – Pa 2 EM_4_2022.indd 135 9.1.2023 10:33:05 136 2022, XXV, 4 Business Adminis a ion and Managemen Scale Sou ces I ems Fac o loading In o ma ion sha ing wi h cus ome s Koçoğlu e al. (2011); Baihaqi and Sohal (2013) Ou key cus ome s ha e access o he ollowing in o ma ion abou ou plan : 1. Cos in o ma ion 0.75 2. Deli e y in o ma ion This i em was excluded 3. Demand change in o ma ion 0.84 4. Demand o ecas in o ma ion 0.82 5. In o ma ion abou plan manu ac u ing capabili ies 0.78 6. In en o y in o ma ion 0.75 7. P oduc ion capaci y in o ma ion 0.84 8. P oduc i i y in o ma ion 0.78 9. Quali y in o ma ion This i em was excluded 10. Schedule in o ma ion 0.72 11. Sensi i e in o ma ion (e.g., inancial in o ma ion, p op ie a y p ocess in o ma ion, e c.) This i em was excluded Supply chain pe o mance Wu e al. (2014); K ause e al. (2007) We a e sa is ied wi h he pe o mance o ou key supplie s on he ollowing c i e ia: 1. Con o mance wi h speci ica ions 0.69 2. Design capabili y 0.67 3. On- ime deli e y 0.78 4. P ice 0.69 5. P oduc liabili y 0.79 6. Quick esponse on sho no ice 0.69 7. Se ice le el 0.79 8. Technical skill 0.77 Sou ce: own Tab. A1: Scale measu emen and ac o loading – Pa 3 EM_4_2022.indd 136 9.1.2023 10:33:05