The impact of alignment between virtual enterprise and information technology on business performance in an agile manufacturing environment

Manufacturing companies are facing rapid and unanticipated changes in their business environment. Agile manufacturing (AM) is a manufacturing paradigm that focuses on smaller scale, modular production facilities, and agile operations capable of dealing with turbulent and changing environments. From several enablers of AM, virtual enterprise (VE) and information technology (IT) were chosen. This empirical study explored the impact of the alignment between VE and IT on business performance in an AM setting. Extensive data collection strategy and several tests are used to establish the reliability and validity of the data collected. Extensive analyses of the data using structural equation molding were performed for five hypotheses. The results indicate that both VE and IT had positive influences on business performance. It was also established that the alignment between VE and IT had a positive impact on business performance. Further, it was shown that the impact of the alignment between VE and IT on business performance was more significant than the impact of VE and IT on business performance individually. In conclusion, the assessment of the results along with future research directions is provided.