Supply chain information governance: toward a conceptual framework

Published date13 May 2019
Pages506-526
Date13 May 2019
DOIhttps://doi.org/10.1108/IJLM-05-2017-0132
AuthorJoonhwan In,Randy Bradley,Bogdan C. Bichescu,Chad W. Autry
Subject MatterManagement science & operations,Logistics
Supply chain information
governance: toward a
conceptual framework
Joonhwan In
Department of Management and Human Resource Management,
California State University Long Beach, Long Beach, California, USA
Randy Bradley
Department of Supply Chain Management, University of Tennessee, Knoxville,
Tennessee, USA
Bogdan C. Bichescu
Department of Business Analytics and Statistics, University of Tennessee,
Knoxville, Tennessee, USA, and
Chad W. Autry
Department of Supply Chain Management, University of Tennessee, Knoxville,
Tennessee, USA
Abstract
Purpose The purpose of this paper is to propose a scalable conceptual framework for governance of supply
chain (SC) information flows by re-contextualizing the organizational concept of information governance as
an SC concept.
Design/methodology/approach This study leverages the strategy-structure-process-performance
(SSPP) theory base to explain how effective SC information governance relates to improved internal SC
performance. Via an in-depth literature review followed by conceptual theory building, the key features of
organizational-level information governance are cast into a theoretical framework.
Findings This study presents the theoretical framework that explains how SC information governance
should contribute to improved internal SC performance. The proposed framework provides a theoretical basis
for future research on SC information governance and would become a useful first step to extend the concept
of SC information governance at the SC level.
Practical implications SC managers should be aware that information governance mechanisms, rather than
the management of basic, information flow-directed processes, to yield the best performance outcomes. Because of
the numerous touch points information has in complex SCs, managing the quality of SC information through
broader, higher-level governance standards is more important than maximizing connectivity and information
flows, and information governance structures/policies across organizations should be designed accordingly.
Originality/value This study theoretically links SC information governance and internal SC performance via
information quality. It also advances the understanding of SC information flow by challenging the implicit but
flawed assumption that uniformity of information quality within the supply chain to create the best outcomes.
Keywords North America, Alignment, Supply chain management, Information governance,
Conceptual research
Paper type Conceptual paper
Introduction
The criticality of information flows to supply chain management (SCM) success is well
documented. For example, prior research affirms that improved access to vital and relevant
information as it moves throughout the supply chain can enhance organizations
downstream responsiveness, via improved supply chain process coordination (Cooper et al.,
1997; Sahin and Robinson, 2002; Patnayakuni et al., 2006). Additionally, scholars have found
that effective information flow can be a key foundation of supply chain integration (Moberg
et al., 2004; Vanpoucke et al., 2017). And, in a particularly prominent paper, Cooper et al.
The International Journal of
Logistics Management
Vol. 30 No. 2, 2019
pp. 506-526
© Emerald PublishingLimited
0957-4093
DOI 10.1108/IJLM-05-2017-0132
Received 24 May 2017
Revised 17 November 2017
1 May 2018
10 August 2018
Accepted 24 October 2018
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/0957-4093.htm
506
IJLM
30,2
(1997) characterized information flow as the single most critical enabler of business process
integration across the entire supply chain.
However, information that has been distorted, poorly cultivated, sloppily collected and/or
mismanaged has the opposite effect of diminishing supply chain performance (Sahin and
Robinson, 2002; Kembro et al., 2017). According to a study by Kurt Salmon and Associates,
retailers experienced a loss of 8.7 percent of total sales in 2016 due to inaccurate inventory
information (Kurt Salmon, 2016), leading to commensurately low in-store fulfillment rate and
picking accuracy and ultimately to consumersdissatisfaction. Unsurprisingly, poor supply
chain information flow was cited as the key detriment to the omnichannel retailers being
studied, and the poor results were underscored by the high lifetime value of omnichannel
shoppers (Girard et al., 2014) and the criticality of seamlessly distributed omnichannel
information (GS1Us, 2015a) as retailers seek to capitalize on the buy-online-pickup- in-store
and buy-in-store-ship-directexperiences to serve customers (Murfield et al., 2017).
These anecdotes support the commonly held postulate that poor coordination of information
flowsleads to poor performance for upstream supply chain members. However, the research
described herein suggests that this postulate oversimplifies the situation. Undoubtedly, poor
information flows are a liability for businesses seeking to provide world-class service, but we will
demonstrate that the root cause of the problem is often something much more detrimental.
Specifically, in many cases, manufacturers and retailers fail in their missions to serve
downstream customers due to poor supply chain information governance (SCIG).
We define SCIG as an organizations enactment of mechanisms that enforce a framework
that defines how supply chain information flows are controlled, accessed and used by a focal
organization and its affiliates. This type of framework facilitates quality information, and
thereby enables an organization to address such questions as How can our organization
ensure that the information exchanged with our supply chain members is accurate,
complete, timely, and relevant?or, How can we identify, trace, and resolve supply chain
information quality issues?SCIG provides guidance on what kinds of structural
mechanisms need to be established and what processes need to be implemented to ensure
effective and efficient supply chain information flows.
Unfortunately, research on SCIG is, to date, virtually nonexistent in the supply chain literature
although there is anecdotal evidence of its benefits from professional publications
(GS1 Us, 2017). The closest research addressing this issue is studies pertaining to information
sharing with supply chain partners (Cui et al., 2015; Kembro et al., 2017; Lusiantoro et al., 2018)
and the facilitation of such information sharing via the use of information technology (Narayanan
et al., 2009), each of which stops short of addressing the root causes for information flow failures
although few studies discuss the importance of interfirm governance mechanisms that can
facilitate supply chain information (e.g. Grover and Saeed, 2007). Moreover, most research on
information flows in supply chains focused on investigating its benefits by assuming the
availability of high-quality supply chain information (Vanpoucke et al., 2009) although the nature
of information flow can be influenced by organizational factors such as organizational structure.
The failure to address SCIG helps to explain some conflicting findings regarding the value of
information sharing in supply chains. For example, one cluster of researchers has found
evidence that organizations realize tangible benefits through supply chain information sharing
(Sahin and Robinson, 2002; Zhou and Benton, 2007), while the findings of another group call into
question the benefits of information sharing, due to the complexity and risksin the supply chain
setting (Vanpoucke et al., 2009). These conflicting viewpoints highlight a need for an
organization-wide method of coping with issues about supply chain informationflows but stop
short of the policy-level components that would ensure high-quality information can be
dispersed across supply chain partners, and used for joint decision making.
The goal of this paper is to conceptualize SCIG and then present a series of propositions that
delineate how SCIG contributes to operational excellence via internal supply chain performance
507
Supply chain
information
governance

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