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The impact of information integration on purchase order finance and new product launch: a case study

Min Zhang (Queen's Management School, Queen's University Belfast, Belfast, UK)
Qiuping Huang (College of Management, Shenzhen University, Shenzhen, China)
Xiande Zhao (China Europe International Business School, Shanghai, China)
Lijun Ma (College of Management and Institute of Big Data, Intelligent Management and Decision, Shenzhen University, Shenzhen, China)

International Journal of Operations & Production Management

ISSN: 0144-3577

Article publication date: 1 April 2021

Issue publication date: 1 June 2021

490

Abstract

Purpose

In this study, we examine the implementation of purchase order finance (POF) which is an innovative supply chain finance (SCF) solution by an innovative SCF lender (i.e. supply chain service provider (SCSP)). The effect of information integration between the SCSP (lender) and product designers (borrowers) on the lender's POF decisions and the borrowers' new product launch is investigated.

Design/methodology/approach

We conduct a case study in the Chinese smartphone industry. A mixed methods design is used, and data are collected from both the supply chain service provider (SCSP) and product designers. We first conduct a qualitative study. Hypotheses are developed concerning the relationships between information integration, in terms of social interaction and information system integration, POF and new product launch. We then conduct a quantitative study. The multilevel structural equation modelling method is used to test the hypotheses.

Findings

We find that information system integration is positively associated with POF but has no significant effect on new product launch. Social interaction is negatively associated with POF but positively associated with new product launch. POF is positively associated with new product launch.

Originality/value

This study contributes to the literature by empirically examining the implementation of POF from both the lender's and borrower's perspectives. We find that information system integration and social interaction have different effects on POF and new product launch. The results thus provide insights into how a lender makes POF decisions and reveal the benefits of POF for borrowers.

Keywords

Acknowledgements

This research is supported by National Natural Science Foundation of China (Major Program Grant (71090403/71090400), Major International (Regional) Joint Research Project (71420107024), 71871145, 71471118, 72031004, and 16BGL190).

Citation

Zhang, M., Huang, Q., Zhao, X. and Ma, L. (2021), "The impact of information integration on purchase order finance and new product launch: a case study", International Journal of Operations & Production Management, Vol. 41 No. 4, pp. 359-382. https://doi.org/10.1108/IJOPM-06-2020-0377

Publisher

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Emerald Publishing Limited

Copyright © 2021, Emerald Publishing Limited

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