Information sharing, coordination and supply chain performance: The moderating effect of demand uncertainty

The purpose of this paper is to explore the effects that customer structured and unstructured information sharing (IS) can have on customer operational and strategic coordination and on supply chain performance (SCP). In addition, the study examines how customer IS influences customer coordination under various levels of demand uncertainty (DU).

The conceptual model for this study is designed on the basis of information-processing theory (IPT). Using data collected from 622 manufacturers in mainland China and Taiwan, the theoretical model is tested using the structural equation modeling method.

The authors find that both customer structured IS and unstructured IS are positively associated with customer strategic coordination. Customer structured IS increases customer operational coordination, but customer unstructured IS does not. DU positively moderates the relations between customer unstructured IS and strategic coordination, and between customer structured IS and operational coordination. Also, DU negatively moderates the relationship between customer structured IS and strategic coordination. Customer strategic coordination is positively related to SCP and to operational coordination. Customer operational coordination has no significant impact on SCP.

This study deepens our understanding of customer IS by distinguishing between customer structured and unstructured IS. The study also provides a greater understanding of customer coordination by making a distinction between the customer strategic and the operational coordination. The findings extend the empirical application of IPT. In addition, this study’s findings direct SC managers to apply varied customer IS practices that can enhance specific kinds of customer coordination activities, thereby enabling improved SCP.