Backward supply chain information sharing : who does it benefit?

Purpose: The purpose of this study is to explore the effect of backward supply chain information sharing (SCIS) on the performance of different parties along supply chains. Design/methodology/approach: Using data collected from 617 Chinese manufacturers, this study examines the effect of information sharing from manufacturers to suppliers (ISMS) on supplier and manufacturer responsiveness in both two- and three-tier supply chains and the transferrable effect of information sharing from customers to manufacturers (ISCM) on supplier responsiveness. The authors use structural equation modeling and regression analysis to estimate the proposed relationships. Findings: ISMS is positively related to supplier responsiveness in both two- and three-tier SCIS, whereas its effect on manufacturer responsiveness is conditional, indicating that upstream receiving parties benefit more from backward SCIS. ISCM is positively related to supplier responsiveness, demonstrating the transferable effect of backward SCIS. Practical implications: When designing SCIS strategies, managers should take into account the unequal distribution of benefits from SCIS and the transferable effect of backward SCIS. Specifically, companies should always motivate their downstream partners to engage in SCIS, while they themselves need to be cautious with information sharing. They should also be aware that their information sharing behavior may benefit a third upstream party. Originality/value: This study provides deep insights into the distribution of the benefits from SCIS among supply chain partners and suggests that the direction and the role supply chain partners play (as receiving or disclosing parties) in SCIS matter.