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The Impacts of Electronic Collaboration and Information Exploitation Capability on Firm Performance: Focusing on Suppliers using Buyer-Dominated Inter-Organizational Information Systems
Abstract
We assessed the effects of electronic collaboration using inter-organizational information systems (IOIS) on firm performance, particularly between dominant buyers and their suppliers. From the suppliers’ perspective, we examined ways in which higher levels of performance can be achieved by increasing the extent that they proactively participate in business activities using IOIS. We defined electronic collaboration as consisting of two major activities: electronic information sharing (EIS) and electronic cooperation (ECo). We also evaluated the extent of EIS and ECo that suppliers contribute to their development of an information exploitation capability (IEC). This capability enables them to utilize internally both information and knowledge created from electronic collaboration. In addition, we assessed the effects of electronic collaboration activities and IEC on a firm performance. We collected surveys from 169 firms, and conducted a Structural Equation Model analysis. We also empirically tested the research model and five hypotheses. The results of the statistical analysis indicated that electronic information sharing exerts a clear effect on electronic cooperation. We determined that EIS and ECo are major sources for the development of IEC and that both ECo and IEC result in improved company performance. Both electronic information sharing and electronic cooperation substantially foster an information exploitation capability. We also determined that the information exploitation capability has a partial mediating effect between electronic information sharing and electronic cooperation on firm performance.
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