The effect of IT in buyer–supplier linkage: IT performance, IT infrastructure and firm performance

Cooperative and integrative partnerships between buyers and suppliers are very important for effective operations. Such partnerships should be based on various information technologies developed in recent years. Therefore, we investigated the relationship among IT performance, IT infrastructure and supply chain performance in buyer–supplier linkage using explanatory examination. This analysis is based on survey results of buyer–supplier practitioners in Korean electronics industry. Specifically, we used factor analysis, correlation analysis, and regression analysis. Major findings are as follows. First, buyers' IT performance contributed to enhance their operational and financial performance, and satisfaction. Second, buyers' IT infrastructure improved their financial performance and satisfaction but showed mixed effects on operational performance. Third, suppliers' operational performance enhanced buyers' operational and financial performance, and satisfaction. Fourth, suppliers' IT performance strengthened their operational and financial performance, and satisfaction. Fifth, suppliers' IT infrastructure showed positive relationships with operational performance and satisfaction.