Leveraging Supply Chain Information Integration in Bottom-of-Pyramid Segments of Emerging Markets

Posted: 22 Aug 2017

See all articles by Jiban Khuntia

Jiban Khuntia

University of Colorado at Denver - Business School

Abhishek Kathuria

Indian School of Business (ISB), Hyderabad

Mariana Giovanna Andrade Rojas

Nanyang Business School, Nanyang Technological University

Terence Saldanha

Washington State University, Carson College of Business

Nikhil Celly

University of Houston - C.T. Bauer College of Business

Date Written: August 12, 2017

Abstract

Bottom-of-Pyramid (BOP) segments of emerging markets pose unique challenges for supply chains due to institutional contexts and settings. Supply chain information integration (SCII) as an IT-enabled capability can help firms to improve collaborations with suppliers and clients, and lead to a higher performance. However, how domestic and foreign firms leverage SCII differs due to the different sets of challenges faced by the two categories of firms. We posit that the influence of SCII on firm performance through client collaboration path is positive for both domestic and foreign firms, but stronger for domestic firms; whereas, the supplier collaboration path is positive for foreign firms but negative for domestic firms. We empirically validate this concept in the BOP segment of an emerging market by comparing the outcomes of leveraging SCII for collaboration, across foreign and domestic automobile ancillary and parts manufacturing firms located in India. These small and medium scale firms are relevant to the two-wheelers and low-cost cars automotive sector, serving the low-income families in India, and form exemplary cases of firms embedded in a BOP market based supply chain. Overall, our results demonstrate that SCII influences firm performance through client and supplier collaboration capabilities. Both partial least squares and econometric analysis of a unique dataset collected through survey of 172 firms reveal broad support for our theorized relationships.

Keywords: Supply chain information integration, client collaboration, supplier collaboration, emerging markets, BOP markets, IT-enabled supply chains, partial least squares, questionnaire surveys

Suggested Citation

Khuntia, Jiban and Kathuria, Abhishek and Andrade Rojas, Mariana Giovanna and Saldanha, Terence and Celly, Nikhil, Leveraging Supply Chain Information Integration in Bottom-of-Pyramid Segments of Emerging Markets (August 12, 2017). Available at SSRN: https://ssrn.com/abstract=3021916

Jiban Khuntia

University of Colorado at Denver - Business School ( email )

1250 14th St.
Denver, CO 80204
United States

Abhishek Kathuria (Contact Author)

Indian School of Business (ISB), Hyderabad ( email )

Hyderabad, Gachibowli 500 019
India

Mariana Giovanna Andrade Rojas

Nanyang Business School, Nanyang Technological University ( email )

Singapore, 639798
Singapore

HOME PAGE: http://www.andrademariana.com

Terence Saldanha

Washington State University, Carson College of Business ( email )

Wilson Rd.
Carson College of Business
Pullman, WA 99164
United States

Nikhil Celly

University of Houston - C.T. Bauer College of Business ( email )

Houston, TX 77204-6021
United States

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