Impact of SOA Use on Performance Outcomes of Information Sharing in Supply Chain

We empirically analyze impact of SOA adoption on performance benefits of information sharing in supply chain using a cross sectional dataset of large US firms. We show that complexity and transparency of information sharing process significantly impact supply chain performance. Information sharing complexity has a negative effect while transparency has a positive effect. We also demonstrate that SOA adoption is successful in mitigating the negative effects of process complexity. Interestingly, SOA adoption also leads to reduction in performance benefits of information sharing transparency. We contribute to business value of IT research by providing empirical evidence of business value of SOA and the mechanisms by which SOA leads to business value. We show that both “what” information is shared and “how” it is shared affect performance and they interact differently with SOA adoption.