The Influence Of IT Investment On Bullwhip Effect Under Different Environment

Since 1990 s, the competition of the companies has expanded to the competition of their supply chains. Supply chains management has been an important research subject.However,the bullwhip effect is always a big problem in the supply chain.The exist of the bullwhip effect on the supply chain will result in quite large lost, such as too many inventories, increasing cost, decreasing the service level. Many researches are aware that through the investment of the IT to share the information can release the bullwhip effect and improve the value of the supply chain management in the background of volatile environment and management of the supply chains.In this paper, we main study about affect of the IT investment to the bullwhip effect and the regulation of influence by different environmental characteristics of IT investment and bullwhip effect.Based on the 72 wholesale and retail listed companies’ semi-annual panel data from 2008 to 2014,then set up a regression model.According to the empirical study, we discuss the impact relationship among the IT investment,bullwhip effect and environment characteristic. Though the study we find(1)Considering the IT investment directly influence to the bullwhip effect, measure with the amplification ratio,the IT investment does not do good to release the bullwhip effect.Measure with inventory turnover ratio, IT investment is benefit to release the bullwhip effect.(2)Measure with amplification ratio, with the higher dynamic environment, the IT investment relaxation effect is weaker.Measure with inventory turnover ratio, under volatility environment,generally, IT investment is benefit to release the bullwhip effect.(3)Environmental complexity dose positive adjustment to the IT investment.The more complexity the environment is, the IT investment affect to bullwhip effect is better.(4)Measure with amplification ratio,environmental munificence dose negative impact to the IT investment adjustment to release the bullwhip effect.Measure with inventory turnover ratio, IT investment has no obviously impact.(5)The scale of the enterprises is positive to the amplification ratio.The net cash flow, market share and growth of the enterprises is negative to the amplification ratio. The original profitability,net cash flow,market share is negative to the inventory turnover ratio.Total assets,growth of the enterprises and accounts receivable turnover is negative to the inventory turnover ratio.Though the thesis, we expand the research angle of impact relationship between IT and the bullwhip effect.We make up the lacking of IT investment and bullwhip effect empirical evidence.This is the first time, we bring the environmental dimensions,environment munificence,environmental dynamism,and environment complexity into the relation between the IT investment and bullwhip effect, to test the environment adjusting effect.It can benefit a lot to the company’s IT construction and release the bullwhip effect very characteristics according to their own conditions and environment.