| Firms adopt different mechanisms to manage their relationships with other firms. In increasingly competitive business environments, such coordination cannot be left to casual processes but have to be intelligently managed to maximize effectiveness. The tremendous advances in computer and communication technologies, and their integration, have given shape to a new information system structure: the inter-organizational information system that facilitates information sharing across organizational boundaries.;This research studies coordination in inter-organizational information systems as found in Electronic Data Interchange (EDI). Organizational structures for managing dyads are classified into unstructured, rigid and flexible, based on procedures for inter-firm coordination, participation of the firms in the implementation, and support structures used across boundaries. Relationship between firms, information system structures within the firms, executive involvement and the degree of integration of technology into the business are studied as four contingency factors that determine coordination.;Two models of analysis are used: based on information from both firms and from one firm in the dyad. Hypotheses are tested on data collected through a two stage survey, using t tests, correlation analysis, multiple regressions and cross tabulations. Factors that identify differences in coordination are training, use of committees and designated contacts.;Satisfaction and efficiency increase with participative technology implementation. Greater requirements for EDI on partners result in reduced efficiency and satisfaction. Firms which are better off on several of the symmetry constructs report higher satisfaction and efficiency scores. Differences in information system size and EDI experience explain differences in satisfaction and efficiency.;Coordination is a multi-dimensional construct. The results suggest that two of its key elements are participative problem solving and the technical complexity supported by the link. If inter-organizational information systems are to support an evolving industrial culture, then cooperative action should be the cornerstone of this transformation. Asymmetry between firms emerges as a powerful determinant of technology adoption between the dominant and subordinate partners. As systems become more sophisticated, and organizations more inter-connected, inequitable practices may set in. An enlightened public policy has to recognize this and encourage healthy trends in industry. |
