Abstract:This study aims to investigate the relationship between supplier collaboration and competitive advantage as well as the moderating effect of IT implementation for Chinese manufacturers. This paper reviews literature on supplier collaboration and propose a conceptual model of supplier collaboration in terms of three dimensions: strategic purchasing, information sharing and supplier involvement. Survey method is adopted in this study. Empirical analysis based on data from 176 manufacturing enterprises indicates that both strategic purchasing and information sharing have significant positive effect on competitive advantage, and IT implementation moderates the relationship between the two dimensions of supplier collaboration, strategic purchasing and information sharing, and competitive advantage positively. However, supplier involvement has no significant impact on competitive advantage. Neither does IT implementation have significant moderating effect on relationship between supplier involvement and competitive advantage.