📈 economics

The Impact of Supply Chain Management Integration on Logistics Performance: The Moderating Role of Information and Communication Technology

This study utilizes structural equation modeling on data from 100 Jordanian manufacturing companies to demonstrate that Supply Chain Management practices significantly enhance logistics performance, a relationship that is further strengthened by the moderating role of Information and Communication Technology.

Original authors: amer zaid alqudah

Published 2026-06-25

📖 4 min read☕ Coffee break read

CC BY 4.0

Original authors: amer zaid alqudah

Original paper licensed under CC BY 4.0 (https://creativecommons.org/licenses/by/4.0/). ✨ This is an AI-generated explanation of the paper below. It is not written or endorsed by the authors. For technical accuracy, refer to the original paper. Read full disclaimer

Imagine a manufacturing company as a giant, high-speed relay race. The goal is to get a product from the raw materials to the customer's door as fast, cheaply, and perfectly as possible. This paper by Amer Zaid Alqudah is like a coach analyzing why some teams win the race while others stumble.

The study focuses on companies in Jordan and asks three main questions:

Do specific teamwork strategies (Supply Chain Management) help the team run faster?
Does having better technology (ICT) help the team run faster?
Does having both teamwork strategies and technology make the team run even faster than just having one or the other?

Here is the breakdown of the findings in plain English:

1. The Five "Teamwork Plays" (SCM Practices)

The researchers looked at five specific ways companies try to work together, which they call Supply Chain Management (SCM) Integration. Think of these as five specific plays in a playbook:

Strategic Supplier Partnership: Treating your material suppliers like best friends rather than just vendors. You plan together.
Internal Lean Operations: Cleaning up the factory floor so nothing is wasted, like a chef organizing their kitchen so they don't trip over pots.
Information Sharing: Everyone on the team (suppliers, factory, delivery drivers) looking at the same scoreboard in real-time.
Postponement Strategies: Waiting to make the final decision on a product until the very last second (like waiting to paint a shirt until you know the customer's exact size preference) to avoid making mistakes.
Customer Relationship Management (CRM): Really listening to what the customer wants and keeping them happy.

The Finding: The study found that when Jordanian companies use these five plays, they run the race much better. Their Logistics Performance (how fast, cheap, and reliable they are) goes up significantly. It's like saying, "If you practice these five drills, you will win more games."

2. The "High-Speed Internet" (ICT)

The second part of the study looks at Information and Communication Technology (ICT). Think of this as the high-speed internet, smart software, and digital tools the company uses.

The Finding: Companies that use better technology also run faster. When you have digital tools to track packages, predict demand, and talk to partners instantly, your logistics improve.

3. The "Supercharger" Effect (The Moderating Role)

This is the most important part of the paper. The researchers asked: Does technology make the teamwork plays work even better?

Imagine the five teamwork plays are a powerful car engine.

SCM alone is like driving that engine on a dirt road. It works, but it's bumpy.
ICT alone is like having a great GPS, but no engine. You know where to go, but you can't move.
SCM + ICT is like putting that powerful engine on a smooth, high-speed highway.

The study found that ICT acts as a "supercharger." It doesn't just help on its own; it makes the teamwork strategies work much more effectively. When a company has strong teamwork and uses advanced technology to support it, the results are explosive. The technology makes the information flow transparent and connects everyone so tightly that the benefits of the teamwork are amplified.

The Big Picture

The paper concludes that for manufacturing companies in Jordan (and similar developing economies), you can't just rely on good teamwork, and you can't just rely on good technology. You need both.

The Theory: The study uses a concept called the "Resource-Based View." Think of this as saying, "To win, you need a unique combination of resources." The five teamwork plays are your "muscle," and ICT is the "nervous system" that tells the muscle how to move efficiently. Together, they create a competitive advantage that is hard for others to copy.
The Advice: The author tells business leaders: Don't just buy software and hope it fixes your problems. Don't just tell your team to "work together" without giving them the digital tools to do it. You must integrate the two. If you align your digital tools with your supply chain strategies, you will see better results in speed, cost, quality, and flexibility.

In short: Good teamwork gets you to the finish line. Good technology helps you run faster. But when you combine them, you don't just win the race; you break the record.

Technical Summary: The Impact of Supply Chain Management Integration on Logistics Performance

Problem Statement and Research Context
In the volatile global business landscape, manufacturing firms face intense pressure to enhance operational efficiency, responsiveness, and service reliability. While Supply Chain Management (SCM) integration is widely recognized as a strategic imperative for connecting financial, material, and information flows, there remains a scarcity of empirical research examining its specific impact on Logistics Performance (LP) within emerging economies. Specifically, the literature lacks detailed investigation into how Information and Communication Technology (ICT) functions as a moderating variable in this relationship.

This study addresses three primary research questions within the context of Jordanian manufacturing companies:

What core SCM practices are currently adopted as expressions of SCM integration?
What is the relationship between SCM integration (operationalized through specific practices) and logistics performance?
Does ICT play a significant moderating role in the relationship between SCM integration and logistics performance?

The study posits that while SCM practices are critical, their effectiveness in driving logistics outcomes may be contingent upon the technological capabilities (ICT) available to the firm, particularly in developing market environments like Jordan.

Methodology
The research employs a quantitative methodology utilizing a cross-sectional survey design.

Sample and Data Collection: Data were collected from 100 Jordanian manufacturing companies across various sub-sectors (including electronics, textiles, pharmaceuticals, and food/beverage). A total of 600 questionnaires were distributed to functional executives (General Managers, Operations, Marketing, HR, and Finance), yielding 500 valid responses (an 83% return rate).
Operationalization:
- Independent Variable (SCM Integration): Based on the framework by Li et al. (2006) and adapted by Rashid et al. (2026), SCM integration is measured through five dimensions: Strategic Supplier Partnership (SSP), Customer Relationship Management (CRM), Internal Lean Practices (ILP), Information Sharing (IS), and Postponement (P).
- Dependent Variable (Logistics Performance): Measured via five indicators: Cost, Time, Quality, Flexibility, and Innovativeness.
- Moderating Variable (ICT): Assessed through dimensions including intrinsic accuracy, representation, contextual relevance, and accessibility.
Analytical Approach: The study utilizes Structural Equation Modeling (SEM) via SmartPLS 3.0 to test the proposed relationships. The analysis includes a rigorous assessment of the measurement model (reliability, convergent validity, and discriminant validity using Fornell-Larcker and HTMT criteria) and the structural model (path coefficients, $R^2$ , and goodness-of-fit indices). Common Method Variance (CMV) was addressed using Harman's single-factor test.

Key Results
The structural equation modeling analysis yielded the following statistically significant findings:

Direct Impact of SCM on LP: SCM integration has a significant positive effect on logistics performance ( $\beta = 0.540, p < 0.001$ ). The model explains approximately 29% of the variance in logistics performance ( $R^2 = 0.29$ ). This supports the hypothesis that strengthening SCM practices (partnerships, lean operations, information sharing, etc.) directly enhances logistics outcomes.
Direct Impact of ICT on LP: ICT capability also demonstrates a significant positive direct effect on logistics performance ( $\beta = 0.560, p < 0.01$ ), explaining 31% of the variance in LP ( $R^2 = 0.31$ ).
Moderating Role of ICT: ICT significantly moderates the relationship between SCM integration and logistics performance ( $\beta = 0.580, p < 0.001$ $β = 0.580, p < 0.001$ ). The inclusion of the interaction term (SCM $\times$ $\times$ ICT) increased the explanatory power of the model, raising the $R^2$ $R^{2}$ from 0.31 to 0.36.
- Interpretation: The positive relationship between SCM practices and logistics performance is amplified when firms possess higher levels of ICT capability. The interaction plot confirms that as ICT capability increases, the slope of the relationship between SCM and LP becomes steeper, indicating that ICT acts as a strategic enabler that reinforces the value derived from SCM integration.

Key Contributions and Significance
The paper claims significance in both theoretical and practical domains:

Theoretical Contribution: The study extends the Resource-Based View (RBV) by providing empirical evidence that ICT serves as a strategic enabler (a complementary resource) that strengthens the value gained from SCM practices. It moves beyond viewing ICT solely as a direct driver of performance, positioning it instead as a critical moderator that enhances the efficacy of operational capabilities. Furthermore, it fills a gap in the literature regarding SCM and ICT dynamics in developing economies, specifically Jordan.
Practical Implications: For executives and policymakers in developing countries, the findings suggest that investing in SCM practices alone may not yield optimal results without parallel investment in ICT infrastructure. The study recommends that managers proactively align ICT strategies with SCM operations to ensure information transparency, process matching, and organizational integration. This alignment is presented as a pathway to achieving long-term, sustainable competitive advantages in fluctuating market environments.

Limitations
The authors acknowledge several limitations: the use of convenience sampling limits the generalizability of findings to the entire population of Jordanian manufacturers; the cross-sectional design precludes definitive causal inferences; and the reliance on self-reported data may introduce response bias. Future research is suggested to employ longitudinal designs, objective performance metrics, and to explore other moderating variables such as organizational culture or leadership style.

1. The Five "Teamwork Plays" (SCM Practices)

2. The "High-Speed Internet" (ICT)

3. The "Supercharger" Effect (The Moderating Role)

The Big Picture

Technical Summary: The Impact of Supply Chain Management Integration on Logistics Performance

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