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Degree of involvement in supply chain system development and relational performance: A potential dark side in supply chain relationships

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  • Kim, Daekwan
  • Shin, Geon-Cheol
  • Jean, Ruey-Jer “Bryan”
  • Tamer Cavusgil, S.
  • Chen, Charles

Abstract

Supply chain partners are increasingly relying on interorganizational information systems (IIS) to improve efficiency in their business activities. While such efforts are expected to create value for each supply chain member and the entire supply chain, the literature reports contradictory results on how the value created by IIS is distributed across supply chain members. Addressing this gap, this study investigates how a supply chain member’s degree of involvement in the IIS development process is linked to the resulting value distribution using data collected from 184 supply chain managers. The results suggest that if a single supply chain partner leads the supply chain system development process, this leader receives the stronger performance benefit from IIS competency, creating a potential ethical hazard as this benefit is unlikely to be announced openly. Similarly, firms that adopt industry standards for IIS, benefit more from IIS competency than those who build the systems together with a partner.

Suggested Citation

  • Kim, Daekwan & Shin, Geon-Cheol & Jean, Ruey-Jer “Bryan” & Tamer Cavusgil, S. & Chen, Charles, 2023. "Degree of involvement in supply chain system development and relational performance: A potential dark side in supply chain relationships," Journal of Business Research, Elsevier, vol. 154(C).
    • Handle: RePEc:eee:jbrese:v:154:y:2023:i:c:s0148296322007251
    DOI: 10.1016/j.jbusres.2022.08.042
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