The impact of information integration on purchase order finance and new product launch: a case study
International Journal of Operations & Production Management
ISSN: 0144-3577
Article publication date: 1 April 2021
Issue publication date: 1 June 2021
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
:Emerald Publishing Limited
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