| Literature DB >> 35002003 |
Mohammad Reza Seddigh1, Sajjad Shokouhyar1, Fatemeh Loghmani1.
Abstract
These two main objectives of this study are to present a theoretical model to explain how business intelligence capabilities influence the company's supply chain sustainability and to examine the relationships among different BI and CSCS dimensions. This study was conducted with the use of a standard BI questionnaire along with the United Nations CSCS questionnaire among 234 Iranian pharmaceutical companies, from which 188 were also surveyed. Smart pls3 and partial least squares methods were used for validity as well as reliability evaluation of the measurement model. According to the findings, BI significantly affects the sustainability of the pharmaceutical supply chain and some of its dimensions, including vision, scope, and internal aspects, thereby the hypothesis indicating the effect of BI on these dimensions was accepted. However, there was an insignificantly positive relationship between BI and the other dimensions of CSCS, including expectation, engagement, and goals; hence, the hypothesis indicating the effect of BI on these dimensions was rejected. If the policy of the board is to implement supply chain sustainability, BI can have a greater impact on the company. Otherwise, BI may be implemented with not much effect though it can be indirectly beneficial to these companies. No studies have been performed on direct examination of the relationship of BI and CSCS and their various dimensions with the use of an extensive survey among Iran's pharmaceutical companies. Also, this study reveals some facts about the sustainability of the pharmaceutical supply chain, BI, and relevant issues as significant obstacles against a sustainable supply chain and BI. This article also supports the UN questionnaire on supply chain sustainability and adopts it in the surveys. Furthermore, various social networks such as Facebook, Twitter, and Instagram were compared, and it was concluded that the data required for the pharmaceutical industry was more accessible from Twitter, in comparison to the other social networks.Entities:
Keywords: Business intelligence; Pharmaceutical supply chain; Sustainable development; The United Nations
Year: 2022 PMID: 35002003 PMCID: PMC8729096 DOI: 10.1007/s10479-021-04509-y
Source DB: PubMed Journal: Ann Oper Res ISSN: 0254-5330 Impact factor: 4.854
Fig. 1Conceptual model
Demographics of respondents
| Demographic variables | Level | Frequency (%) |
|---|---|---|
| Gender | Male | 74 |
| Female | 26 | |
| Educational background | Information Technology | 14 |
| Pharmacy (Pharm.D) | 61 | |
| Pharmacy (Ph.D) | 6 | |
| Economics | 16 | |
| Law | 3 | |
| Position | Chief manager | 100 |
| Age | 25–35 | 11 |
| 36–45 | 46 | |
| Above 46 | 43 |
Companies’ properties
| Companies’ properties | Level | Frequency (%) |
|---|---|---|
| Position in supply chain | Supplier | 3.2 |
| Manufacturer | 27.7 | |
| Importer | 55.9 | |
| Distributer | 13.2 | |
| Structure | Government-own corporation | 7.4 |
| Privately held company | 67.9 | |
| Public company | 24.7 | |
| Size | 10–249 personnel | 82.9 |
| 250–4999 | 16.9 | |
| 5000 or more | 0.2 |
Correlation matrix
| Reporting infrastructure | Planning infrastructure | Reporting functionality | Planning functionality | Management reporting | Planning budgeting | |
|---|---|---|---|---|---|---|
| Reporting infrastructure | ||||||
| Planning infrastructure | 0.582 | |||||
| Reporting functionality | 0.758 | 0.721 | ||||
| Planning functionality | 0.742 | 0.632 | 0.701 | |||
| Management reporting | 0.698 | 0.743 | 0.655 | 0.569 | ||
| Planning budgeting | 0.596 | 0.516 | 0.621 | 0.651 | 0.559 |
*The bold values on the diagonal are the square roots of AVE
The final results of seven hypotheses
| Hypotheses direct effect | Path coefficient | STERR | Z statistic | Test result |
|---|---|---|---|---|
| BIC → Vision | 0.4073 | 0.0053 | 9.8674** | Accepted |
| BIC → Expect | 0.0641 | 0.0631 | 1.7195 | Rejected |
| BIC → Scope | 0.7423 | 0.091 | 86.3329*** | Accepted |
| BIC → Engage | 0.1661 | 0.0063 | 1.4652 | Rejected |
| BIC → Internal | 0.2167 | 0.05 | 4.5745*** | Accepted |
| BIC → Goals | 0.0325 | 0.0392 | 0.5798 | Rejected |
| BIC → CSCS | 0.9638 | 0.0042 | 193.8232*** | Accepted |
Fig. 2Impact of BIC on CSCS (standard estimation and significance estimation)
Fig. 3Impact of BIC on different aspects of CSCS standard estimation and significance estimation
Confirmatory factor analysis, AVE, Cronbach’s alpha coefficient
| Alpha | AVE | CR | Mean | SD | |
|---|---|---|---|---|---|
| Reporting infrastructure | 0.961 | 0.9121 | 0.9218 | 3.563 | 1.693 |
| Planning infrastructure | 0.969 | 0.9328 | 0.9543 | 3.268 | 1.234 |
| Reporting functionality | 0.956 | 0.9431 | 0.9420 | 2.236 | 1.980 |
| Planning functionality | 0.963 | 0.9152 | 0.9617 | 2.562 | 1.245 |
| Management reporting | 0.955 | 0.9323 | 0.9012 | 3.341 | 1.326 |
| Planning budgeting | 0.974 | 0.9137 | 0.9360 | 2.891 | 1.710 |
Standardized loadings of the latent constructs in the model (***p < 0.001)
| First-order constructs | Indicators | Loadings | Second-order constructs and their loadings | Third-order construct and loadings |
|---|---|---|---|---|
| Reporting infrastructure | RI 1 | 0.9651*** | Infrastructure integration (0.75–0.95) | BI capabilities (0.80–0.93) |
| RI 2 | 0.9810*** | |||
| RI 3 | 0.9652*** | |||
| RI 4 | 0.9551*** | |||
| Planning infrastructure | PI 1 | 0.9561*** | ||
| PI 2 | 0.9631*** | |||
| PI 3 | 0.9701*** | |||
| PI 4 | 0.9781*** | |||
| Reporting functionality | RF1 | 0.9514*** | Functionality (0.95–0.98) | |
| RF2 | 0.9617*** | |||
| RF3 | 0.9744*** | |||
| RF4 | 0.9623*** | |||
| Planning functionality | PF1 | 0.9554*** | ||
| PF2 | 0.9781*** | |||
| PF3 | 0.9781*** | |||
| PF4 | 0.9652*** | |||
| Management reporting | MR 1 | 0.9566*** | Self-service (0.94–0.97) | |
| MR 2 | 0.9641*** | |||
| Planning budgeting | PB1 | 0.9566*** | ||
| PB2 | 0.9562*** |
Criteria of AVE and CR
| AVE | Composite reliability | |
|---|---|---|
| Reporting infrastructure | 0.9233 | 0.9516 |
| Planning infrastructure | 0.9254 | 0.9652 |
| Reporting functionality | 0.9363 | 0.9426 |
| Planning functionality | 0.9526 | 0.9356 |
| Management reporting | 0.9325 | 0.9536 |
| Planning budgeting | 0.9452 | 0.9634 |
Fig. 4Impact of BIC on different aspects
| Sub-dimensions | Indicators | Sources |
|---|---|---|
| BI reporting infrastructure integration | Our management reporting and analysis systems (1 to 5): • Are purely spreadsheet based (1) vs. have a fully integrated IT systems architecture (5); • Consist solely of isolated and individualized spreadsheets (1) vs. are integrated by a common, shared online platform and database (5); • Use highly manual processes to extract data from transactional systems (1) vs. have fully automated integration with all relevant transactional systems (5); • Are based on data from disparate spreadsheets (1) vs. source all data from a single data warehouse (5) | (References): Peters et al. ( |
| BI planning infrastructure integration | Our planning, budgeting, and forecasting systems (1 to 5): • Are purely spreadsheet based (1) vs. have a fully integrated IT systems architecture (5); • Consist solely of isolated and individualized spreadsheets (1) vs. are integrated by a common, shared online platform and database (5); • Use highly manual processes to extract data from transactional systems (1) vs. have fully automated integration with all relevant transactional systems (5); • Are based on data from disparate spreadsheets (1) vs. source all data from a single data warehouse (5) | |
| BI reporting functionality | Our management reporting and analysis systems [strongly disagree (1); strongly agree (5)]: • Have sophisticated formats and presentation features; • Have highly interactive reporting features; • Are very easy to use and navigate by all users; • Have rapid response and refresh times | References: Cheng et al. ( |
| BI planning functionality | Our planning, budgeting, and forecasting systems [strongly disagree (1); strongly agree (5)]: • Have rapid response and refresh times; • Are very quickly updated with actual and base-level information; • Allow forecasts and budgets to be quickly created and revised; • Allow sophisticated planning models to be easily implemented and changed | |
| management reporting and analysis systems | Dedicated analysts provide all the information to middle managers (1) to middle managers access and interact With the system(s) very frequently (5); • Dedicated analysts provide all the information to senior managers (1) to senior managers access and interact With the system(s) very frequently (5) | References: Johannes et al. ( |
| planning budgeting and forecasting systems | Dedicated analysts provide all the information to middle managers (1) to middle managers access and interact with the system(s) very frequently (5); • Dedicated analysts provide all the information to senior managers (1) to senior managers access and interact with the system(s) very frequently (5) | |
| Dimensions | Sources | Score |
|---|---|---|
| Vision and objectives for supply chain sustainability | Elkington ( | |
| Establishing supply chain expectations and requirements | Devuyst et al. ( | |
| Determining Scope of Activities | Devuyst et al. ( | |
| Engaging with suppliers and other businesses in the supply chain | Barratt and Oke ( | |
| Assigning internal roles and responsibilities | Burns and Stalker ( | |
| Creating goals and tracking and communicating performance | Devuyst et al. ( | |