Supply chain collaboration and firm’s performance: The critical role of information sharing and trust

The purpose of this paper is to identify and assess the interrelationships between various characteristics of information sharing and trust and their criticality for effective information-centred supply chain collaboration initiatives and, in turn, its criticality to overall firm’s performance.

A survey of 189 executives from different firms was conducted and the resulting data were analysed to investigate how collaboration enablers affect effective collaboration and to determine its impacts on organisational performance. Structural equation modelling through partial least squares is used to study the relationships between four enablers (trust, information readiness, information accuracy and information security), perceived collaboration success, and two outcomes (sales growth and overall operational performance).

The empirical results indicate that three collaboration enablers including trust, information readiness and secure sharing of information improve supply chain collaboration. The present study finds that “secure sharing of information” was the most important factor in fostering information sharing-centred collaboration. The present study also demonstrates that effective collaboration positively and significantly influences on firm’s performance.

This study provides researchers and practitioners with a more comprehensive understanding about the information sharing-centred collaboration, its enablers and effects on firms’ performance in a supply chain context. Future research should focus on developing additional constructs that may capture other drivers of effective collaboration.

The present study makes an empirical contribution to the body of knowledge by investigating an integrated framework focussing on the enablers of collaboration through information sharing and its impact on firms’ performance.