The effects of business systems leveraging on supply chain performance: Process innovation and uncertainty as moderators

Rooted in the profit-seeking motives of social exchange theory, this study aims to investigate the factors that facilitate leverages of firm's business systems and their sharing of information with group members, as well as the impacts of business systems leveraging (BSL) on information sharing and supply chain performance. Simultaneously, the moderating effects of uncertainty and the degree of process innovation on the relationship between BSL and supply chain performance are also estimated. The analytical results indicated that proactive technological orientation, information technology (IT) connectivity, supply chain member pressure, and member relationship quality encourage firms to combine their business systems with those of other business partners. Interestingly, in a situation where there is high demand and an uncertain supply, the impact of BSL on supply chain performance is low, while the moderating effect of process innovation on the relationship between BSL and supply chain performance is significant. Finally, it is suggested that firms implementing BSL work to upgrade their technology maintain tight relationships with supply chain partners and create innovation in all aspects of their business processes in order to survive in the highly competitive IT environment.