Bridging Information Technology Capability and Firm Performance: Unveiling the Mediating Role of Supply Chain Collaboration

Abstract

This research investigates the mediating role of supply chain collaboration in the relationship between information technology capability and firm performance. The study adopts a quantitative, applied approach, utilizing a descriptive-survey methodology. Data were collected using both library research and field methods, with a standard questionnaire administered to managers and senior experts from operational manufacturing companies in Baghdad. The content validity of the questionnaire was confirmed by experts, while its reliability, assessed using Cronbach's alpha, reached 0.875, indicating high internal consistency. Divergent and convergent validity tests were also conducted. Structural equation modeling (SEM) and Smart PLS software were employed for data analysis. The results reveal that supply chain collaboration significantly mediates the impact of IT capability on firm performance. The findings suggest that organizations with robust IT infrastructures can further improve their performance outcomes by fostering stronger collaborative efforts within their supply chains, thereby optimizing operational efficiencies and enhancing competitive advantage.