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

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  • 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
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    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.
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