Operational and strategic benefits of IOS-enabled inter-organizational integration
Date of Issue2006
College of Business (Nanyang Business School)
In this study, I employ the lens of the resource-based view (RBV) of the firm to examine the strategic value of IOS-enabled inter-organizational integration. We first develop the key construct of IOS-enabled inter-organizational integration, identifying and conceptualizing its two dimensions - inter-organizational system integration and business integration. Next, I present the research framework showing that while both inter-organizational system integration and business integration have positive impacts on operational performance, only inter-organizational business integration is positively associated with strategic performance. I further propose that two inter-organizational factors, i.e. relative bargaining power and relative absorptive capacity, positively influence a company's strategic benefits obtainable in an IOSenabled inter-organizational relationship and that relative absorptive capacity also has a positive influence on relative bargaining power.