Buyer's Information Visibility Advantage in Inter-Organizational Information Systems and Supply Chain IT Appropriability in Supply Chain

kyung kyu kim; Sung Yul Ryoo

doi:10.34163/jkits.2017.12.5.013

Inter-organizational information systems (IOS) in supply chain (SC) is a critical factor for SC performance. However, imbalance of power among SC participants causes asymmetric information visibility through an IOS among the participants. This study looks into the determinants of asymmetric information visibility in SC and its consequences. Drawing on the resource dependence theory, this study considers buyer's dependence advantage, supplier's dependence advantage, and joint dependence as major determinants of information visibility advantage in IOS. Furthermore, this study explores the relationship between information visibility advantage in IOS and SC IT appropriability. The study data were collected from 103 matched pairs of buyers and their suppliers. The results show that buyer's dependence advantage positively affects buyer's information visibility advantage in IOS, whereas both supplier's dependence advantage and joint dependence negatively influence buyer's information visibility advantage in IOS. Also, the relationship between buyer's information visibility advantage in IOS and SC IT appropriability turns out to be positively significant. According to these results, this study makes important contributions to understanding the asymmetric information visibility through an IOS.

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