| Information systems (IS) capabilities are understood to help enterprises derive synergies across their business activities. Yet, the theory explaining the linkages between information technology (IT) and value in business networks is still under development. Our research model addresses this deficiency by first grounding the notion of value, our eventual dependent variable, in terms of indirect relational value. Indirect relational value refers to the value that accrues to networked enterprises by virtue of their linkages with other enterprises. Examples include benefits such as cross-selling and increased customer satisfaction due to collaboration with a business partner. Second, as recommended by the literature (Barua et al. 1995), we conceptualize knowledge sharing across BUs as our intermediating output variable. Results from our empirical study validate the intermediating structure of the model. Finally, three IS capabilities and two attributes of inter-enterprise relationships, constitute the set of independent variables.; We test our model in the boundary-spanning context of business-to-business (B2B) sales, where the phenomenon we are investigating is particularly important. Using a survey questionnaire, we analyze responses from 69 managers/business unit heads with responsibilities in B2B sales. Since in the current business environment, multi-unit companies are often constituted by merged/acquired entities, inter-unit relationships are a proxy for inter-enterprise relationships.; Our findings have important theoretical and practical significance. First, since IS integration significantly affects knowledge sharing, this suggests that the investments in IS integration can be the locus of absorptive capacity of enterprises, by which they are able to share knowledge with their partners. Second, since knowledge sharing significantly affects indirect relational value, it suggests that specific IS capabilities can significantly enhance relational value at a network level. Third, since workflow interdependencies and social ties' strength across enterprises, are significant, this indicates that these two relationship attributes can compensate for an insufficient level of IS capabilities. Finally, the presence of individual level electronic communication media and richer application functionality do not increase knowledge sharing in the B2B sales process. Thus, this study also offers specific guidance about which IS capabilities maybe important for successful B2B sales performance. |
