IDEAS home Printed from https://ideas.repec.org/a/eee/jomega/v32y2004i1p41-55.html
   My bibliography  Save this article

Information technology investments in purchasing: an empirical investigation of communications, relationship and performance outcomes

Author

Listed:
  • Sriram, Ven
  • Stump, Rodney

Abstract

The present study draws on the information technology (IT), marketing, purchasing, and organization literatures to develop an integrated model of the antecedents and outcomes of IT investments in the context of organizational purchasing. We examine the role that IT investments play in enacting collaborative communications strategies, fostering improvements in interfirm relationships, and enhancing purchasing performance. Together, these factors comprise elements of our conceptual model that depicts the motivations for investing in IT and the underlying process by which IT influences purchasing performance. Our model draws on and extends the marketing communications literature to integrate two complementary views of how IT may influence performance. The first reflects the prevailing perspective from the IT literature, which views this technology as the locomotive that drives performance and productivity. The second, emerging view suggests that this technology can also be used to foster improved interfirm relationships. We present the results of an empirical analysis that tested our conceptual framework and found that IT indirectly effects performance, i.e., its effect is fully mediated by relationship quality.

Suggested Citation

  • Sriram, Ven & Stump, Rodney, 2004. "Information technology investments in purchasing: an empirical investigation of communications, relationship and performance outcomes," Omega, Elsevier, vol. 32(1), pages 41-55, February.
  • Handle: RePEc:eee:jomega:v:32:y:2004:i:1:p:41-55
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305-0483(03)00107-5
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Campbell, N. C. G., 1985. "An interaction approach to organizational buying behavior," Journal of Business Research, Elsevier, vol. 13(1), pages 35-48, February.
    2. Johanson, Jan & Mattsson, Lars-Gunnar, 1987. "Interorganizational relations in industrial systems : a network approach compared with the transaction cost approach," Working Papers 1987:7, Uppsala University, Department of Business Studies.
    3. Sidney E. Harris & Joseph L. Katz, 1991. "Organizational Performance and Information Technology Investment Intensity in the Insurance Industry," Organization Science, INFORMS, vol. 2(3), pages 263-295, August.
    4. Bhatt, Ganesh D. & Stump, Rodney L., 2001. "An empirically derived model of the role of IS networks in business process improvement initiatives," Omega, Elsevier, vol. 29(1), pages 29-48, February.
    5. Anandhi S. Bharadwaj & Sundar G. Bharadwaj & Benn R. Konsynski, 1999. "Information Technology Effects on Firm Performance as Measured by Tobin's q," Management Science, INFORMS, vol. 45(7), pages 1008-1024, July.
    6. Lewin, Jeffrey E. & Johnston, Wesley J., 1997. "Relationship marketing theory in practice: A case study," Journal of Business Research, Elsevier, vol. 39(1), pages 23-31, May.
    7. Rai, A. & Patnayakuni, R. & Patnayakuni, N., 1996. "Refocusing where and how IT value is realized: An empirical investigation," Omega, Elsevier, vol. 24(4), pages 399-412, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. van der Vaart, Taco & van Donk, Dirk Pieter, 2008. "A critical review of survey-based research in supply chain integration," International Journal of Production Economics, Elsevier, vol. 111(1), pages 42-55, January.
    2. Pingsheng Tong & U. N. Umesh & Jean L. Johnson & Ruby P. Lee, 2016. "Collaborative Relationships — The Role of Information Technology," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 13(03), pages 1-30, June.
    3. Adu Danso & Kofi Poku & Ahmed Agyapong, 2017. "Mediating role of internal communications in market orientation and performance of mobile telecom firms: Evidence from Ghana," Cogent Business & Management, Taylor & Francis Journals, vol. 4(1), pages 1403713-140, January.
    4. Gunasekaran, Angappa & Subramanian, Nachiappan & Papadopoulos, Thanos, 2017. "Information technology for competitive advantage within logistics and supply chains: A review," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 99(C), pages 14-33.
    5. Habib Affes & Fatma Ayadi, 2014. "The Impact of New Management Accounting Practices on Strategic Buyer–Supplier Relationship within the Supply Chain: An Empirical Analysis within the Tunisian Context," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 4(2), pages 185-200, April.
    6. Maiga, Adam S. & Nilsson, Anders & Ax, Christian, 2015. "Relationships between internal and external information systems integration, cost and quality performance, and firm profitability," International Journal of Production Economics, Elsevier, vol. 169(C), pages 422-434.
    7. Bals, Lydia & Laine, Jari & Mugurusi, Godfrey, 2015. "Evolving procurement organizations: A contingency model for structural alternatives," UASM Discussion Paper Series 1/2015, University of Applied Sciences Mainz.
    8. González-Benito, Javier & Reis da Rocha, Duilio & Queiruga, Dolores, 2010. "The environment as a determining factor of purchasing and supply strategy: An empirical analysis of Brazilian firms," International Journal of Production Economics, Elsevier, vol. 124(1), pages 1-10, March.
    9. Sato, Yuji & Tan, Kim Hua & Tse, Ying Kei, 2017. "Investment performance analysis of industrial products: Case of an effluent processing facility at a chemical company," International Journal of Production Economics, Elsevier, vol. 194(C), pages 52-58.
    10. Li, Siyu & Huo, Baofeng & Wang, Qiang, 2023. "The impact of buyer-supplier communication on performance: A contingency and configuration approach," International Journal of Production Economics, Elsevier, vol. 257(C).
    11. Bendul, Julia C. & Skorna, Alexander C.H., 2016. "Exploring impact factors of shippers’ risk prevention activities: A European survey in transportation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 90(C), pages 206-223.
    12. Lucia-Palacios, Laura & Bordonaba-Juste, Victoria & Polo-Redondo, Yolanda & Grünhagen, Marko, 2014. "Technological opportunism effects on IT adoption, intra-firm diffusion and performance: Evidence from the U.S. and Spain," Journal of Business Research, Elsevier, vol. 67(6), pages 1178-1188.
    13. Tan, Kim Hua & Noble, James & Sato, Yuji & Tse, Ying Kei, 2011. "A marginal analysis guided technology evaluation and selection," International Journal of Production Economics, Elsevier, vol. 131(1), pages 15-21, May.
    14. Arantes, Amílcar & Alhais, Andreia Frias & Ferreira, Luis Miguel D.F., 2022. "Application of a purchasing portfolio model to define medicine purchasing strategies: An empirical study," Socio-Economic Planning Sciences, Elsevier, vol. 84(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Vincent J. Shea & Kevin E. Dow & Alain Yee-Loong Chong & Eric W. T. Ngai, 2019. "An examination of the long-term business value of investments in information technology," Information Systems Frontiers, Springer, vol. 21(1), pages 213-227, February.
    2. Rajiv Kohli & Sarv Devaraj, 2003. "Measuring Information Technology Payoff: A Meta-Analysis of Structural Variables in Firm-Level Empirical Research," Information Systems Research, INFORMS, vol. 14(2), pages 127-145, June.
    3. Vincent J. Shea & Kevin E. Dow & Alain Yee-Loong Chong & Eric W. T. Ngai, 0. "An examination of the long-term business value of investments in information technology," Information Systems Frontiers, Springer, vol. 0, pages 1-15.
    4. Stefan Schweikl & Robert Obermaier, 2020. "Lessons from three decades of IT productivity research: towards a better understanding of IT-induced productivity effects," Management Review Quarterly, Springer, vol. 70(4), pages 461-507, November.
    5. Chen, Yueh H. & Lin, Winston T., 2009. "Analyzing the relationships between information technology, inputs substitution and national characteristics based on CES stochastic frontier production models," International Journal of Production Economics, Elsevier, vol. 120(2), pages 552-569, August.
    6. Hilal Atasoy & Rajiv D. Banker & Paul A. Pavlou, 2016. "On the Longitudinal Effects of IT Use on Firm-Level Employment," Information Systems Research, INFORMS, vol. 27(1), pages 6-26, March.
    7. Luis Alfonso Dau & Aya S. Chacar & Marjorie A. Lyles & Jiatao Li, 2022. "Informal institutions and international business: Toward an integrative research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(6), pages 985-1010, August.
    8. A Lagendijk & G A van der Knaap, 1993. "Foreign Involvement in the Spanish Automobile Industry: Internalising versus Networking," Environment and Planning A, , vol. 25(11), pages 1663-1676, November.
    9. Kwon, He-Boong & Lee, Jooh, 2019. "Exploring the differential impact of environmental sustainability, operational efficiency, and corporate reputation on market valuation in high-tech-oriented firms," International Journal of Production Economics, Elsevier, vol. 211(C), pages 1-14.
    10. Yves-C. Gagnon & Hélène Sicotte & Elisabeth Posada, 2000. "Impact of SME Manager's Behavior on the Adoption of Technology," Entrepreneurship Theory and Practice, , vol. 25(2), pages 43-58, December.
    11. Dante I. Leyva-de la Hiz & J. Alberto Aragon-Correa & Andrew G. Earle, 2022. "Innovating for Good in Opportunistic Contexts: The Case for Firms’ Environmental Divergence," Journal of Business Ethics, Springer, vol. 176(4), pages 705-721, April.
    12. Wenbin Sun & Shanji Yao & Rahul Govind, 2019. "Reexamining Corporate Social Responsibility and Shareholder Value: The Inverted-U-Shaped Relationship and the Moderation of Marketing Capability," Journal of Business Ethics, Springer, vol. 160(4), pages 1001-1017, December.
    13. Humphery-Jenner, M., 2011. "Anti-takeover Provisions as a Source of Innovation and Value Creation," Discussion Paper 2011-045, Tilburg University, Center for Economic Research.
    14. Frank Germann & Gary L. Lilien & Christine Moorman & Lars Fiedler & Till Groβmaβ, 2020. "Driving Customer Analytics From the Top," Customer Needs and Solutions, Springer;Institute for Sustainable Innovation and Growth (iSIG), vol. 7(3), pages 43-61, October.
    15. Jensen, Peter D. Ørberg, 2012. "A passage to India: A dual case study of activities, processes and resources in offshore outsourcing of advanced services," Journal of World Business, Elsevier, vol. 47(2), pages 311-326.
    16. Singh, Inderjeet & Lila, Anshu, 2012. "Emerging Structure of Rajasthan Economy in India," MPRA Paper 43522, University Library of Munich, Germany, revised 25 Dec 2012.
    17. Lee, Joong-Woo, 1994. "Technology licensing to the Korean coal power generation market : the case of the Swedish multinational enterprise ABB Carbon and its main competitors," Working Papers 1994:3, Uppsala University, Department of Business Studies.
    18. Bayrak, Tuncay, 2018. "Evaluating large-scale IT investment decisions," Technology in Society, Elsevier, vol. 54(C), pages 128-138.
    19. Revoredo-Giha, Cesar & Leat, Philip M.K. & Renwick, Alan W. & Lamprinopoulou-Kranis, Chrysa, 2012. "Innovation and Power in Food Supply Chains: The Case of the Potato Sector in the UK," Working Papers 142544, Scotland's Rural College (formerly Scottish Agricultural College), Land Economy & Environment Research Group.
    20. Jan-Erik Vahlne & Jan Johanson, 2017. "From internationalization to evolution: The Uppsala model at 40 years," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(9), pages 1087-1102, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jomega:v:32:y:2004:i:1:p:41-55. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/375/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.