A conceptual model for evaluating the financial impact of supply chain management technology investments

Abstract

Purpose

The purpose of this paper is to review the literature concerning supply chain management technology (SCMT) and financial performance, and to present a model for evaluating the financial performance benefits of investments in supply chain management technologies. The literature review and the associated model also lead to a discussion of opportunities for future research in the area.

Design/methodology/approach

To develop the model, a comprehensive review of the literature investigating the financial performance benefits of SCMT and other closely‐related information technologies, such as inter‐organizational systems, was performed. Findings from the reviewed studies were assimilated and used as the basis for the proposed model and for recommended avenues of future research.

Findings

The literature reviewed suggested that financial performance improvements from SCMT investments are derived from improvements in knowledge‐intensive capabilities, which lead to improvements in operational capabilities, leading, in turn, to first‐ and second‐order benefits. The ability to realize benefits is also influenced by a firm's position within the supply chain and exogenous economic forces.

Originality/value

This paper contributes to the knowledge of how financial gains are realized as the result of investments in SCMT, and provides context within which future research efforts can be placed. Future research opportunities are also discussed.

Citation

Blankley, A. (2008), "A conceptual model for evaluating the financial impact of supply chain management technology investments", The International Journal of Logistics Management, Vol. 19 No. 2, pp. 155-182. https://doi.org/10.1108/09574090810895942