Appendix: Measurement items

Constructs and measurement

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Flexible IT infrastructure
We have established corporate rules and standards for hardware and operating systems
to ensure platform compatibility.

0.83

We have identified and standardized data to be shared across systems and business
units.

0.86

The manner in which the components of our information systems are organized and
integrated allows for rapid changes.

0.82

Our information systems are highly modular.

0.74

IT assimilation
We implement IT applications in many business processes.

0.89

We implement IT applications in a large number of functional areas.

0.88

We use IT applications in our management at a high degree.

0.77

We use IT applications in our operations at a high degree.

0.74

Absorptive capacity
- Acquisition
We are successful in learning new things.

0.80

We are effective in developing new knowledge or insights that have the potential to
influence product/service development.

0.88

We are able to identify and acquire internal (e.g., within the firm) and external (e.g.,
market) knowledge.

0.84

- Assimilation
We have effective routines to identify, value, and import new information and
knowledge from channel partners.

0.84

We have adequate routines to analyze the information and knowledge obtained.

0.90

We have adequate routines to assimilate new information and knowledge.

0.87

- Transformation
We can successfully integrate our existing knowledge with the new information and
knowledge acquired.

0.85

We are effective in transforming existing information into new knowledge.

0.89

We can successfully grasp the opportunities for our firm from new external knowledge. 0.82
- Exploitation
We can successfully exploit the new integrated information and knowledge into
concrete applications.

0.83

We are effective in utilizing knowledge into new products.

0.88

We constantly consider better ways to exploit knowledge.

0.86

Supply chain Agility

- Visibility
The key partners are provided with any information that might be helpful.

0.86

We keep each other informed about events or changes that may affect the other party.

0.88

The exchange of information across the supply chain takes place regularly.

0.81

- Joint planning
We conduct joint development of demand forecasts with the key partners.

0.83

We develop joint plans on inventory requirements with the key partners.

0.81

We develop joint plans on new product/service introduction and rollover with the key
partners.

0.87

We develop joint plans on service support with the key partners.

0.79

- Process integration
We systematically coordinate our workflow activities across supply chain with the key 0.83
partners.
We coordinate extensively across the supply chain with respect to different workflow
activities with the key partners.

0.84

We coordinate procurement (e.g., online order placement: placing and tracking orders
with suppliers; allowing suppliers to submit bids online) with the key partners.

0.83

We coordinate order execution (e.g., online ordering: accepting orders electronically

from customers; allowing customers to track and inquire about orders) with the key
partners.

0.84

- Shared value
We share the same business values for the supply chain with the key partners.

0.87

We have a similar understanding of the aims and objectives of the supply chain with the 0.89
key partners.
We work with the key partners to improve mutual quality in a long run.

0.87

We work with the key partners to improve the supply chain as a whole.

0.84

Firm Performance
Compared with our key competitors, we now perform much better than they do in the
following areas:
Return on investment (ROI)

0.72

Profits as a percentage of sales

0.76

Decreasing product or service delivery cycle time

0.74

Rapid response to market demand change

0.76

Rapid confirmation of customer orders

0.73

Increasing customer satisfaction

0.75

Note: All items use five-point Likert scales anchored at 1 (strongly disagree) and 5 (strongly agree).