Addressing the consensus on information sharing in CPFR information systems: Insights from manufacturer – retailer dyads

Abstract

This study investigated the mechanism of improving consensus between one dominant manufacturer and retailers in evaluating retailers’ information sharing in a Collaborative Planning, Forecasting, and Replenishment (CPFR) system. IT capability, goodwill trust, and competence trust were proposed as antecedents of this consensus based on organizational information processing theory (OIPT). A matched questionnaire survey was conducted, generating 253 manufacturer-retailer dyads for analysis. Consensus on information sharing was operationalized by the degree-symmetric model (DSM). The empirical results showed that retailers’ IT capability, goodwill trust, and competence trust in the dominant manufacturer were positively related to the consensus on information sharing. Furthermore, the interaction between retailers’ IT capability and goodwill trust was negatively related to this consensus, whereas the interaction effect of retailers’ IT capability and competence trust was positive.