A Resource-based View of the Interorganizational Information Systems Capability

Abstract

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Facing today’s highly competitive market and changed business environment, whether the company has the capability to implement successful inter-organizational information systems to achieve efficient supply chain management becomes a significant issue. To fulfill this need, this research aims to develop a framework for measuring the IOS capability. After company interviews, our proposed framework is simplified to measure four IOS capabilities: (1) physical assets, (2) path dependency, (3) relational intangibles (trust and complementary resources), and (4) market power. We propose that firms with these IOS resources can have higher IOS usage, which in turn creates greater IOS performance.<br> A general survey is then conducted in the Taiwan PC industry to validate our proposed framework. The instrument was tested for validity and reliability properties, and multiple linear regression was used for testing our hypotheses. The results indicate that physical IT assets and relational specific intangibles are positively related with IOS usage. On the other hand, path dependency and market power do not have significant impact on IOS usage. We further explore the relationships between the IOS capabilities and firm performance. The result indicates firms with more IOS usage are more likely to achieve better firm performance. These results can further be examined in a more industry-wide survey in the future. The researchers can also build upon this model to further examine the factors that are discovered.