Interorganizational Systems and Supply Chain Agility in Uncertain Environments: : The Mediation Role of Supply Chain Collaboration

The economy is recovering in today’s postpandemic phase, but uncertainties such as supply chain disruptions remain a top risk. Environmental uncertainty creates the need for swift supply chain adjustments in response to these external changes. Supply chain agility (SCA) has been recognized as a key capability for firms working to achieve superior performance in uncertain business environments. SCA is challenging to achieve, however, because it requires the firm and its supply chain partners to collaborate closely yet flexibly across organizational boundaries. Considering interorganizational systems (IOS) have been widely deployed to establish digital connections across organizational boundaries, this study aims to explore to what extent and how IOS as boundary objects, characterized by standardization and adaptability, affect SCA under different levels of environmental uncertainty. This study provides guidance for information technology (IT) and business directors on how to achieve SCA through the design or implementation of IOS, provides guidance for business directors on how to invest more effectively to capture opportunities and deal with risks, and advises business and IT directors on how to respond appropriately to different levels of environmental uncertainty (e.g., IT directors should design adaptive IOS and business directors should invest in supply chain collaboration when environmental uncertainty is high).

Supply chain agility has been recognized as a key capability for firms working to achieve superior performance in uncertain business environments. Supply chain agility is challenging to achieve, however, because it requires the firm and its supply chain partners to collaborate closely yet flexibly across organizational boundaries. Extending the boundary object literature to the supply chain context, this study unveils the mechanism through which interorganizational systems (IOS), widely deployed to span organizational boundaries through interfirm digital connections, promote supply chain agility in uncertain environments. The concept of supply chain collaboration is introduced as the mediating mechanism between two key IOS characteristics (i.e., standardization and adaptability) and supply chain agility. Environmental uncertainty is incorporated as the contextual condition through contextualized theorization of IOS as boundary objects. The resulting hypotheses are tested via a two-wave, match-paired survey study on business and information technology executives in 156 manufacturing firms. Empirical findings provide general support to most hypotheses, and implications for theory development and professional practice are discussed.

History: Manju Ahuja, Senior Editor; Robert Gregory, Associate Editor.

Funding: This work was supported by the National Natural Science Foundation of China [Grant 72101259], the National Science Foundation of China [Grant 72071171], and the General Research Fund [Grant 11509420].

Supplemental Material: The online appendices are available at https://doi.org/10.1287/isre.2023.1210.