IDEAS home Printed from https://ideas.repec.org/a/inm/orisre/v24y2013i2p261-278.html
   My bibliography  Save this article

Governance of Interorganizational Information Systems: A Resource Dependence Perspective

Author

Listed:
  • Dipanjan Chatterjee

    (Faculty of Business, Brock University, St. Catherines, Ontario)

  • T. Ravichandran

    (Lally School of Management and Technology, Rensselaer Polytechnic Institute, Troy, New York 12180)

Abstract

In this paper we examine why firms seek to control and own interorganizational information systems, or IOS. Practitioners have largely cited the issues related to control and ownership of IOS, referred to as IOS governance in this paper, as the key reason behind the failure of many IOS initiatives. We distinguish between two IOS governance modes, transactional and financial, and develop a mediated-moderation model to explain the factors influencing the governance choices. In our model, the key motivators of IOS governance are the criticality and the replaceability of the resources that firms procure, which affect IOS governance through their influence on the degree of operational integration existing between partners. We hypothesize that while resource criticality will increase the needs for financial and transactional governance because of its positive impact on operational integration, resource replaceability will negatively influence governance needs because of its negative impact on operational integration. Furthermore, technological uncertainty associated with the resources is argued to negatively impact the extent of IOS governance exercised by firms by weakening the positive impact of resource criticality and strengthening the negative impact of resource replaceability on operational integration respectively. We empirically test our model using data gathered from a survey of 159 United States manufacturing firms. Results show that resource criticality positively affects the extent of financial and transactional IOS governance by increasing the need for operational integration, whereas resource replaceability negatively affects them by reducing the need for operational integration. Furthermore, technological uncertainty creates disincentives for IOS governance primarily by weakening the positive influence of resource criticality on operational integration, while no statistically significant effect of technological uncertainty on the relationship between resource replaceability and operational integration was discerned.

Suggested Citation

  • Dipanjan Chatterjee & T. Ravichandran, 2013. "Governance of Interorganizational Information Systems: A Resource Dependence Perspective," Information Systems Research, INFORMS, vol. 24(2), pages 261-278, June.
    • Handle: RePEc:inm:orisre:v:24:y:2013:i:2:p:261-278
    DOI: 10.1287/isre.1120.0432
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/isre.1120.0432
    Download Restriction: no
    File URL: https://libkey.io/10.1287/isre.1120.0432?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. N. Venkatraman & Akbar Zaheer, 1990. "Electronic Integration and Strategic Advantage: A Quasi-Experimental Study in the Insurance Industry," Information Systems Research, INFORMS, vol. 1(4), pages 377-393, December.
    2. Vivek Choudhury, 1997. "Strategic Choices in the Development of Interorganizational Information Systems," Information Systems Research, INFORMS, vol. 8(1), pages 1-24, March.
    3. Srinivasan Balakrishnan & Birger Wernerfelt, 1986. "Technical change, competition and vertical integration," Strategic Management Journal, Wiley Blackwell, vol. 7(4), pages 347-359, July.
    4. Amrit Tiwana & Benn Konsynski, 2010. "Complementarities Between Organizational IT Architecture and Governance Structure," Information Systems Research, INFORMS, vol. 21(2), pages 288-304, June.
    5. Paul Chwelos & Izak Benbasat & Albert S. Dexter, 2001. "Research Report: Empirical Test of an EDI Adoption Model," Information Systems Research, INFORMS, vol. 12(3), pages 304-321, September.
    6. Jarvis, Cheryl Burke & MacKenzie, Scott B & Podsakoff, Philip M, 2003. "A Critical Review of Construct Indicators and Measurement Model Misspecification in Marketing and Consumer Research," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 30(2), pages 199-218, September.
    7. M. Bensaou, 1997. "Interorganizational Cooperation: The Role of Information Technology an Empirical Comparison of U.S. and Japanese Supplier Relations," Information Systems Research, INFORMS, vol. 8(2), pages 107-124, June.
    8. Ajit Kambil & Eric van Heck, 1998. "Reengineering the Dutch Flower Auctions: A Framework for Analyzing Exchange Organizations," Information Systems Research, INFORMS, vol. 9(1), pages 1-19, March.
    9. M. Lynne Markus & Daniel Robey, 1988. "Information Technology and Organizational Change: Causal Structure in Theory and Research," Management Science, INFORMS, vol. 34(5), pages 583-598, May.
    10. J. Yannis Bakos & Barrie R. Nault, 1997. "Ownership and Investment in Electronic Networks," Information Systems Research, INFORMS, vol. 8(4), pages 321-341, December.
    11. Laurie J. Kirsch & V. Sambamurthy & Dong-Gil Ko & Russell L. Purvis, 2002. "Controlling Information Systems Development Projects: The View from the Client," Management Science, INFORMS, vol. 48(4), pages 484-498, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jong Uk Kim & Rajiv Kishore, 2019. "Do we Fully Understand Information Systems Failure? An Exploratory Study of the Cognitive Schema of IS Professionals," Information Systems Frontiers, Springer, vol. 21(6), pages 1385-1419, December.
    2. van den Broek, Tijs & van Veenstra, Anne Fleur, 2018. "Governance of big data collaborations: How to balance regulatory compliance and disruptive innovation," Technological Forecasting and Social Change, Elsevier, vol. 129(C), pages 330-338.
    3. Luo, Jun & Chong, Alain Yee-Loong & Ngai, Eric W.T. & Liu, Martin J., 2014. "Green Supply Chain Collaboration implementation in China: The mediating role of guanxi," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 71(C), pages 98-110.
    4. Douglas Cumming & Sofia Johan & Zaheer Khan & Martin Meyer, 2023. "E-Commerce Policy and International Business," Management International Review, Springer, vol. 63(1), pages 3-25, February.
    5. Romain Gandia & Elodie Gardet, 2019. "Sources of Dependence and Strategies to Innovate: Evidence from Video Game SMEs," Post-Print hal-01696250, HAL.
    6. Büttgen, Marion & al.,, 2021. "Blockchain in Service Management and Service Research - Developing a Research Agenda and Managerial Implications," SMR - Journal of Service Management Research, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 5(2), pages 71-102.
    7. Luo, Jun & Chong, Alain Yee-Loong & Ngai, Eric W.T. & Liu, Martin J., 2015. "Reprint of “Green Supply Chain Collaboration implementation in China: The mediating role of guanxi”," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 74(C), pages 37-49.
    8. Yu Liu & T. Ravichandran, 2015. "Alliance Experience, IT-Enabled Knowledge Integration, and Ex Ante Value Gains," Organization Science, INFORMS, vol. 26(2), pages 511-530, April.
    9. Mao, Hongyi & Liu, Shan & Zhang, Jinlong & Deng, Zhaohua, 2016. "Information technology resource, knowledge management capability, and competitive advantage: The moderating role of resource commitment," International Journal of Information Management, Elsevier, vol. 36(6), pages 1062-1074.
    10. Bell, David & Lycett, Mark & Marshan, Alaa & Monaghan, Asmat, 2021. "Exploring future challenges for big data in the humanitarian domain," Journal of Business Research, Elsevier, vol. 131(C), pages 453-468.
    11. Mansour Alyahya & Meqbel Aliedan & Gomaa Agag & Ziad H. Abdelmoety, 2022. "Exploring the Link between Sustainable Development Practices, Institutional Pressures, and Green Innovation," Sustainability, MDPI, vol. 14(21), pages 1-15, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nagy, A., 2009. "Adoption of interorganizational information systems : The adoption position model," Other publications TiSEM af471297-bf03-43bf-88c1-4, Tilburg University, School of Economics and Management.
    2. Sony, Michael & Naik, Subhash, 2020. "Industry 4.0 integration with socio-technical systems theory: A systematic review and proposed theoretical model," Technology in Society, Elsevier, vol. 61(C).
    3. Büttgen, Marion & al.,, 2021. "Blockchain in Service Management and Service Research - Developing a Research Agenda and Managerial Implications," SMR - Journal of Service Management Research, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 5(2), pages 71-102.
    4. Yang Liu & Moses Olabhele Esangbedo & Sijun Bai, 2019. "Adaptability of Inter-Organizational Information Systems Based on Organizational Identity: Some Factors of Partnership for the Goals," Sustainability, MDPI, vol. 11(5), pages 1-20, March.
    5. Daning Hu & Sherry X. Sun & J. Leon Zhao & Xinlei Zhao, 2011. "Strategic choices of inter-organizational information systems: A network perspective," Information Systems Frontiers, Springer, vol. 13(5), pages 681-692, November.
    6. Frößler, F. & Rukanova, B. & Klein, F., 2008. "Inter-Organisational Network Formation and Sense-Making : Initiation and Management of a Living Lab," Serie Research Memoranda 0017, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    7. Henderson, Dave & Sheetz, Steven D. & Trinkle, Brad S., 2012. "The determinants of inter-organizational and internal in-house adoption of XBRL: A structural equation model," International Journal of Accounting Information Systems, Elsevier, vol. 13(2), pages 109-140.
    8. Byungjoon Yoo & Vidyanand Choudhary & Tridas Mukhopadhyay, 2007. "Electronic B2B Marketplaces with Different Ownership Structures," Management Science, INFORMS, vol. 53(6), pages 952-961, June.
    9. Rebolledo, Claudia & Nollet, Jean, 2011. "Learning from suppliers in the aerospace industry," International Journal of Production Economics, Elsevier, vol. 129(2), pages 328-337, February.
    10. Nelson, Matthew L. & Shaw, Michael J., 2005. "Interorganizational System Standards Diffusion: The Role of Industry-Based Standards Development Organizations," Working Papers 05-0126, University of Illinois at Urbana-Champaign, College of Business.
    11. Matta, Vic & Koonce, David & Jeyaraj, Anand, 2012. "Initiation, Experimentation, Implementation of innovations: The case for Radio Frequency Identification Systems," International Journal of Information Management, Elsevier, vol. 32(2), pages 164-174.
    12. Suoniemi, Samppa & Terho, Harri & Zablah, Alex & Olkkonen, Rami & Straub, Detmar W., 2021. "The impact of firm-level and project-level it capabilities on CRM system quality and organizational productivity," Journal of Business Research, Elsevier, vol. 127(C), pages 108-122.
    13. Hackney, Ray & Xu, Huinan & Ranchhod, Ashok, 2006. "Evaluating Web Services: Towards a framework for emergent contexts," European Journal of Operational Research, Elsevier, vol. 173(3), pages 1161-1174, September.
    14. Minu Ipe & T. S. Raghu & Ajay Vinze, 2010. "Information intermediaries for emergency preparedness and response: A case study from public health," Information Systems Frontiers, Springer, vol. 12(1), pages 67-79, March.
    15. Gautam Ray & Dazhong Wu & Prabhudev Konana, 2009. "Competitive Environment and the Relationship Between IT and Vertical Integration," Information Systems Research, INFORMS, vol. 20(4), pages 585-603, December.
    16. Rajiv D. Banker & Robert J. Kauffman, 2004. "50th Anniversary Article: The Evolution of Research on Information Systems: A Fiftieth-Year Survey of the Literature in Management Science," Management Science, INFORMS, vol. 50(3), pages 281-298, March.
    17. Andreas I. Nicolaou & D. Harrison McKnight, 2006. "Perceived Information Quality in Data Exchanges: Effects on Risk, Trust, and Intention to Use," Information Systems Research, INFORMS, vol. 17(4), pages 332-351, December.
    18. Manas Ranjan Pani & Amit Agrahari & S. K. De & G. Sahoo, 2011. "Literature Review and Research Issues in e-Procurement," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 36(3), pages 225-246, August.
    19. Ralph Foorthuis & Marlies Steenbergen & Sjaak Brinkkemper & Wiel A. G. Bruls, 2016. "A theory building study of enterprise architecture practices and benefits," Information Systems Frontiers, Springer, vol. 18(3), pages 541-564, June.
    20. Kim, Daekwan & Shin, Geon-Cheol & Jean, Ruey-Jer “Bryan” & Tamer Cavusgil, S. & Chen, Charles, 2023. "Degree of involvement in supply chain system development and relational performance: A potential dark side in supply chain relationships," Journal of Business Research, Elsevier, vol. 154(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:orisre:v:24:y:2013:i:2:p:261-278. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.