Cash Flow and Supply Chain Relationship in New Product Quality in Auto Industry

By Kang, Taeuk | Global Business and Management Research: An International Journal, July-October 2012 | Go to article overview

Cash Flow and Supply Chain Relationship in New Product Quality in Auto Industry


Kang, Taeuk, Global Business and Management Research: An International Journal


Introduction

The role of information technology in contemporary organizations continues to expand in scope and complexity and has a dramatic effect on business operations. Information systems are widely used in the banking sector, these systems are particularly appropriate because banking organizations are, by their nature, information intensive. India's banking sector is growing at a fast pace. It has become one of the most preferred banking destinations in the world. Whether it is the wide distribution network of the public sector banks (PSBs), or the first-mover technology advantage taken by the private banks, this new age of banking has brought forth opportunities as well as challenges. Also, given the fact that 75 per cent of the financial sector assets come from banking services, this industry plays a pivotal role in governing the economy.

Banks need to constantly look for innovative services which offer customers the convenience of transacting from anywhere, at any time and using delivery channels more suitable for them. These are frontiers which would add value to the services offered to customers and at the same time act as a means for increasing the profits for banks too. The collapse of geographical distances necessitates the banks to have good quality information. Technology plays an increasingly important role in the development of new services and more efficient management of the institutional structures of banks.

But it does not ensure good quality of information. Banking corporations simply forget to check the quality of their data, directing all their attention to the identification, extraction and information load, the result of which has been dramatic, and companies have come to question the quality of the information produced by the IT in which they are investing or intending to invest. The Indian banking industry was chosen as the object of this study because of its heavy investment in, and extensive use of IT, as well as the fact that information represents a key element influencing the performance and success of organizations in the sector.

Background and Previous Research:

As the field of information systems grows, the banking information system literature has not matured to meet the needs of practice. One particular area that is in urgent need of further exploration is the information systems success in the banking sector. In the current environment, with the substantial investment in information systems and the push to develop performance-based banking organizations, banking managers are handicapped by a lack of appropriate instruments to measure the success of information systems and, in turn, are unable to justify investment in existing and future information systems. Moreover, most, if not all, of the empirical evidence on information system effectiveness and its associated factors is confined to the use of data from developed countries. The findings of such research cannot necessarily be generalized to other environments where the social, economic, and cultural characteristics are different. Such evidence needs to be validated by using cross-cultural research before it can be used to manage global information systems effectively (Khalil and Elkordy, 1997). But the present success methods have not brought out the real worth of IT instead contributed to the phenomenon called the "IT investment--paradox", or the "IT Black Hole". Large sums are invested in IT, and seem to be swallowed by a large black hole without rendering any returns. This productivity paradox hype has resulted in search for alternative ways of assessing information technology success through other quality constructs, namely, Information Quality, System Quality, Service Quality, User Satisfaction and Net benefits.

The work by DeLone & McLean was the earliest attempt to organize efforts at measuring IS performance. Based on the communications research of Shannon and Weaver (1949) and the information "influence theory" of Mason (1978), as well an empirical management information systems (MIS) research studies from 1981-1987, they categorized IS success into six major dimensions: System Quality, Information Quality, Use, User Satisfaction, Individual Impact, and Organizational Impact. …

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Cash Flow and Supply Chain Relationship in New Product Quality in Auto Industry
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