Pre-requisites of successful strategic electronic coordination: the moderation effect of the ownership mechanism of inter-organisational information systems
Pre-requisites of successful strategic electronic coordination: the moderation effect of the ownership mechanism of inter-organisational information systems
In this paper, we attempt to explain how the ownership mechanism of an interorganisational
information system (IOS) may impact strategic information exchange
(electronic coordination) induced by specific investments in the IOS. Recent research
and practice show that heavy investments in IOSs demonstrate mixed results with
respect to their impact on the electronic coordination. Consequently, the search
of additional factors is needed to help and explain under what circumstances the IOS
investments for strategic purposes become beneficial for the companies in a buyersupplier
dyad. Transaction cost economics (TCE) and the hostage model are used as
a framework for the research. 198 observations of Norwegian companies in different
branches of industry constitute the base of the empirical study. A buyer-supplier dyad
is the unit of the analysis. A regression model of the relation between the IOS
ownership mechanism and the strategic information sharing is used to test two
hypotheses about the buyer-supplier collaboration via an IOS. The results demonstrate
that the risk of unilateral specific investments in an IOS made by the buyer or the seller
is attenuated by the ownership mechanism of the IOS. The willingness of a buyer to
share their strategic information with the supplier via the IOS increases if the supplier
invests in the IOS which is owned and controlled by the buyer. Conversely, the supplier
becomes motivated to share certain sensitive strategic information with the buying
company if the latter invests in the IOS which is owned and controlled by the supplier.
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