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The Value of Information Sharing in Supply Chains: An Empirical Study

Kamel A. Fantazy, Vinod Kumar, Uma Kumar

Supply chain organizations have long debated whether there is value in information sharing. If there is value in information sharing, they are concerned about how great the value is, what they could share without risking their business, and which dimension – the intensity, the extensity, or the quality of information – is most important in this sharing. This paper is based on a field study of 130 firms in the manufacturing industry in Canada, and the proposed model has been tested using the structure equation modeling (SEM) technique. Our results indicated that benefits, costs, and risk sharing, and internal integration have a positive impact on information sharing. The three information sharing dimensions (intensity, extensity, and quality) have a positive direct impact on performance. This study emphasizes three main conclusions. First, the total effect enhanced the supply chain performance through information sharing. Second, the quality of information is the most vital of the three information-sharing dimensions. Third, in general, information sharing is crucial to supply chain performance.