Results of Structural Analysis and Hypotheses Testing

The LISREL results (Fig. 7.1) indicate that the proposed model has a good fit with Chi-square — 725.28 and d.f. = 312, resulting a normed Chi-square of 2.32. RMSEA is 0.079, and CFI and NNFl are 0.90 and 0.89 respectively. 

Between these two models tested, the data better supports the proposed model in Fig. 7.1. The findings for the proposed structural model are summarized in Table 7.17. Eight out of nine hypothesized relationships are strongly supported with the significant, direct positive effects at the 0.01 level. These hypotheses include H2 (lOS appropriation to supply chain collaboration), H3a (collaborative culture to lOS appropriation), Hsb (collaborative culture to supply chain collaboration), H4a (trust to lOS appropriation), H4b (trust to supply chain collaboration), H5 (supply chain collaboration to collaborative advantage), Hg (supply chain collaboration to firm performance) and H7 (collaborative advantage to firm performance). The path coefficients and t-values for these hypotheses are respectively 0.37(3.26), 0.30(2.94), 0.24(3.17), 0.44(4.54), 0.41(4.95), 0.63(8.92), 0.36(5.09), and 0.49(6.41). Hi (IT resources to lOS appropriation) is supported with the significant, direct positive effect (path coefficient = 0.26, t-value = 2.07) at the 0.05 level. 

According to Joreskog and Sorbom (1986), it is helpful to study relationships by breaking total effects into direct and indirect. To examine the total and component effects, aU the coefficients are calculated, shown in Table 7.18. The hypotheses with direct effects are already discussed. A closer look at the hypotheses with both direct and indirect effects in Table 7.18 is needed. 

It was hypothesized that collaborative culture has a significant positive relationship with supply chain collaboration (H3b). The direct effect of collaborative culture on supply chain collaboration is 0.24, significant at the level of 0.01. 

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