Information Processing Needs and Capabilities of B2B Systems in Book Publishing Industry

Abstract

This research applied the framework of information processing theory to investigate whether the information processing capabilities and the uncertainties from information processing needs can affect the B2B system performance of the book publishing companies. According to the findings of our empirical study, reduction of the demand uncertainty generally can improve the B2B system performances of cost saving, operational efficiency, satisfaction, and new business opportunity. Meanwhile, we also found that companies with low uncertainty on the factor of supply have better B2B system performances of turnover and market share than the ones with high uncertainty. However, the uncertainty factors of best-selling books, firm investment, and partner investment may not have significant impacts on the B2B system performances. From the perspective of information processing capabilities, enhancement of purchasing/sales/reconciliation functions is critical to the B2B systems if the performances of cost saving, turnover, and satisfaction are the most serious concerns of book publishing companies. On the other hand, the information processing capabilities of procurement/ distribution and enquiries have no significant effects on the B2B system performances. Our results can help book publishing industry not only to evaluate where to start the reduction of uncertainties based on the needs of B2B information processing but also to but also to prioritize the investments of B2B system capabilities in a performance-driven environment.