Information Technology and Supply Chain Collaboration: Mediating Effects of Existing Relationships between Partners

Previous studies suggest that information technology (IT) is critical to the development of collaboration between supply chain partners. Our study posits that the effect of IT is not predetermined by its technological capabilities. Rather, its effect on interorganizational collaboration is the emergent properties of the interplay between IT and existing relationships between partners. Based on the literature, we selected four dimensions of supplier-retailer relationship (trust, interdependence, long-term orientation, and information sharing) to investigate the mediating effect of existing relationships on the efficacy of IT. Using case research that involved direct observation and systematic interviews with five pairs of suppliers and retailers, we verified that existing formative contexts between partners both enable and constrain the effect of IT on interorganizational collaboration. In addition, IT reinforces and stabilizes the already existing interorganizational structures and arrangements. Overall, the results suggest that cooperative formative contexts between partners should precede the IT-based interorganizational linkage effort.