Information technology impact on interorganizational relationships in marketing channels: Management of cooperation, conflict, and information sharing

There are many reports that competition is requiring firms in marketing channels to form tighter partnerships by using interorganizational systems (IOS) as a critical enabler. However, the impacts from tighter IOS linkages are a double-edged sword; some studies found IOS-based coordination increases trust and cooperation while other studies viewed it as a source of contention.;To resolve these seemingly two different findings, this study reviews previous findings from marketing channel studies and finds that IOS-based information exchanges are only one part of channel trading information exchanges. Moreover, it notes that IOS adoption per se should not be theoretically equated with information exchanges. Based on that recognition, the study proposes an IOS impact assessment model that examines the relationships between (a) the stage of IOS adoption (e.g., planning to adopt, adopting, using, extensively using), (b) the strength of communication ties between suppliers and retailers, and (c) the behavioral outcomes (e.g., conflict and cooperation) of interorganizational relationships (IORs).;On the bases of a cross-sectional survey of suppliers and retailers, the study finds that the level of cooperation (joint decision making) between suppliers and retailers is primarily determined by the strength of communication ties at the functional (operational) level. Moreover, the IOS impact assessment model reveals that, from the standpoint of suppliers, the IOS adoption stage is associated with the higher levels of functional communication ties and conflict resolutions. As for retailers, the model does not find significant impact of IOS on functional-level communication, conflict or conflict resolution. Rather, it indicates that there is a negative association between IOS and joint decision making, partly because of vendor-managed inventory.;Therefore, the study suggests that the assessment of IOS impact on IORs depends on the intricate relationships between a firm's channel position (e.g., a supplier or retailer), the stage of IOS adoption/use, and channel communications at the top management and functional levels. A major insight from this research is that information exchanges via IOS are only one part of channel communication. This implies that we must assess IOS impact in the whole context of channel communications.