Impact of supplier-specific investments in inter-organisational information systems on strategic electronic coordination: the moderation effect of buyer dependence
Impact of supplier-specific investments in inter-organisational information systems on strategic electronic coordination: the moderation effect of buyer dependence
This paper examines the factors which influence sharing of the strategic information
(in other words, electronic coordination) in a buyer–supplier dyad. The antecedents of
this coordination are examined rather well in the transaction cost economics (TCE)
theory and resource-dependency theory (RDT), while the supply chain management
perspective is contemplated. The mentioned frameworks are used in the analysis.
However, the research focus is narrowed down to the exploration of the antecedents
of information exchange conducted via inter-organisational information systems (IOS).
The empirical analysis is based on 198 observations of Norwegian companies operating
in different types of industries. A regression model is used to test the hypotheses
about the antecedents of strategic electronic coordination. The research results
indicate that the direct effect of the supplier-specific investments in the IOS on the
exchange of strategic information in the buyer–supplier dyad is not statistically
significant. The supplier-specific investment in the IOS becomes positively associated
with the strategic information exchange in the buyer–supplier dyad only when the
buyer is dependent on the supplier. The buyer dependency creates a high motivation
for the company to exchange the strategic information with the supplier who is more
powerful in the dyad. This research concludes that the companies making substantial
investments in the IOS for electronic coordination purposes may not reach their goals
if relation-specific factors, such as buyer dependency, are not comprehensively
considered.
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