Information system integration, forecast information quality and market responsiveness: Role of socio-technical congruence

Abstract

Organisations integrate information systems with their channel partners to improve forecasting capabilities and to respond to changes in consumers and market. Given the advancement and radical growth in information technology and the large capital outlays required for the implementation and integration of such technologies there is need for more research into how partnering organisations can maximise the benefits accruing form information systems integration. Thus, the current study tests a moderated mediated model that investigates how perceived socio-technical congruence by partnering organisations enhances the effect of interorganisational information systems integration on forecasting information quality and market responsiveness. Using absorptive capacity and socio-technical congruence theory, first, the study examines the mediating role of forecast information quality on the relationship between interorganisational information systems integration and market responsiveness. Second, the study examines the moderating role of perceived socio-technical congruence. SPSS-PROCESS model was used for the analysis. The study contributes to knowledge by extending the applicability of socio-technical congruence theory to information systems and forecasting literature in inter-organisational context. The study points to the need for high levels of socio-technical congruence between partnering organisations to maximise the benefits accruing from interorganisational information systems integration.