Information technology and organizational performance within international business to business relationships

Purpose – Advanced information technology (IT) changes the way companies manage cross-border supply chains. This paper examines the role of IT in the context of international business to business (B2B) relationship and its contribution to supply chain performance. Design/methodology/approach – This literature review paper develops a conceptual model of IT-mediated relationships in international supply chain relationships. The framework integrates transaction cost economics and resource-based theory perspectives and argues that IT capabilities facilitate supply chain performance, deter partner’s opportunism and this process is mediated by B2B processes. Moreover, environmental, relational, cultural and country level moderators are examined. Findings – It is suggested that IT capabilities contribute directly to improved organizational process such as coordination, transaction specific investment, absorptive capacity and monitoring. These in turn contribute to strategic and operational performance outcomes. Against a resource-based as well as a transaction-cost theory background it is suggested that partner interdependence and environmental, country and cultural factors moderate the process of IT contribution on performance. Research limitations/implications – The paper provides a number of propositions which can be tested empirically in future studies. Practical implications – Managers should focus on the complementarities of IT capabilities. Electronic integration in combination with, for example, human IT resources may enhance supply chain performance and mitigate the moderating effects of environmental, relational, cultural and country factors. Originality/value – The paper develops an integrated conceptual model and propositions which contribute to a clarification of the ambiguous nature of the IT-business value in international B2B relationship.