A multi-theory perspective on enablers of inter-organizational information and communication technology: A comparison of China and the Netherlands

Xuan Zhang,Dirk Pieter Van Donk,Jayanth Jayaram

doi:10.1016/j.ijinfomgt.2020.102191

Abstract

Prior research on implementation of Information and Communication Technology (ICT) has predominantly been viewed from an intra- organizational perspective. This paper aims to extend this view by taking an inter-organizational perspective. By combining insights gained from two theoretical perspectives: transaction cost economics and relational exchange theory, we seek to understand enablers of inter-organizational ICT. Also, we investigate the effect of the socio-economic climate by comparing the country contexts of China and the Netherlands. We use survey data from 112 Dutch and 320 Chinese firms to test our hypotheses regarding potential differences between these countries. The paper helps in understanding the idea that enablers of Inter-organizational ICT implementation could depend on country context. In the Dutch context, the transaction cost based perspective provides a valuable explanation for the use of Inter-organizational ICT, while in the Chinese context, both transaction cost economics, and relational exchange theory based perspectives help understand enablers for Inter-organizational ICT. Managers of global companies can use insights from this study to help guide their implementation of ICT strategy. Particularly, it may be noted that, despite a desire for uniformity and standardization, there might be different ways of implementing ICT that are attributed to country contexts.

Highlights

For multinational firms it is a key challenge to manage dissimilarities across different countries while executing a global strategy (Ghemawat, 2007)
The field of International Business Studies has studied questions related to entry mode, investment decisions, governance of subsidiaries and financial structures (e.g., Brouthers & Hennart, 2007; Meyer, Estrin, Bhaumik, & Peng, 2009; Procher & Engel, 2018). Operations related questions such as improving and restructuring global supply chain networks are far less investigated. Is it better to employ a ‘one size fits all’ approach, and apply a standardized approach to implementing improvement programs such as Enterprise Resources Planning, quality management or lean management (e.g. Netland, Schloetzer, & Ferdows, 2015), or is it better to be aware of probable differences between plants in different countries that might enable the success of such improvement programs? In this regard, a particular context of interest is the use of Inter-organizational Information and Communication Technology (IOICT) that intends to connect activities between a supplier and a buyer
Inspired by the Cao, Li, Jayaram, Liu and Lumineau (2018) study, but in contrast to prior studies, this study aims to provide a better insight into these inter-organizational mechanisms that shape implementation of IOICT across different countries, rather than just acknowledging that countries may differ in socio-economic characteristics

Summary

Introduction

For multinational firms it is a key challenge to manage dissimilarities across different countries while executing a global strategy (Ghemawat, 2007). Operations related questions such as improving and restructuring global supply chain networks are far less investigated. Is it better to employ a ‘one size fits all’ approach, and apply a standardized approach to implementing improvement programs such as Enterprise Resources Planning, quality management or lean management Successful use of IOICT could depend on characteristics of the relationship between a buyer and a supplier (Giotopoulos, Kontolaimou, Korra, & Tsakanikas, 2017) as embedded in contextual, country-related factors (e.g., Wiengarten, Pagell, Ahmed, & Gimenez, 2014). For global companies, the implementation of IOICT in their whole network could pose specific challenges, as they need to balance between choosing one standard approach for all countries versus considering country specific differences and tailoring strategies according to country specific factors. The current paper aims to resolve this challenge, and help answer related questions for companies operating globally

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