Mediation effect of business process and supply chain management capabilities on the impact of IT on firm performance: Evidence from Chinese firms ?
Motivated by the seeming presence of the productivity paradox in China, this research revisits the question of how information technology (IT) affects firm performance in China. It aims to find the mediation factors for the relationship between IT capabilities and performance. We find that a firms management capabilities to manage both its internal and external processes fully mediate the impact of IT on firm performance. The research advances our understanding of the IT-firm performance nexus in China as well as in other developing countries. It provides an avenue for exploring other mediating variables. Our findings suggest that firms should avoid the fallacy that IT investments are directly responsible for enhancing firm performance.
mediation supply chain management firm performance it capability business process management