How to benefit from your supply chain partners' information?
Study: Interorganizational dependence, information transparency in interorganizational information systems, and supply chain performance
Information technology enables supply-chain partners to share information, thereby fostering supply-chain performance. However, only a few organizations fully exploit their supply-chain partners’ information resources, leading to a large gap between the potential and practice of inter-organizational information systems. This study asks why only a few organizations benefit from their partners’ information.
How it was studied:
The authors interviewed 111 suppliers to determine their dependence, information transparency, relationship quality, relationship-specific performance, inter-organizational trust, inter-organizational information systems integration, and joint governance structure. They used partial least squares (PLS) to analyze the data.
In examining the relationships among asymmetry in the degree to which partners depend on each other, information transparency, and supply-chain performance, this study provides some important suggestions:
- Supply-chain partners would benefit from information-sharing by forming interdependent relationships using inter-organizational information systems.
- Information-sharing behavior depends on the level of interdependence between the supply-chain partners involved.
- Increasing interdependence between supply-chain partners increases information transparency.
- Information transparency positively influences relationship quality, but asymmetric information transparency negatively influences joint profit.