Information Systems Faculty Publications and Presentations

SHAPING ASYMMETRIC SUPPLY CHAIN PARTNERSHIPS: THE ROLE OF SHARED IT AND TRUST

Document Type

Article

Publication Date

2016

Abstract

Every organization attempts to minimize transaction costs. One way to do so is by forming partnerships. This paper presents a process view of how shared IT and trust affect transaction costs in a transaction dyad consisting of a small supplier and a large customer. The paper presents a dual perspective of influencing elements; shared IT represents the technological aspects of changes in transaction costs and the Trust represents the human aspects. The base model emphasizes the impact on transaction costs by shared IT and trust. Trust was shown to be the strongest determinant of the reduction in transaction costs; Shared IT demonstrated that it too could reduce transaction costs, but with less influence than trust. The mediating effects of trust are significant on the relationship between shared IT and transaction costs. However, shared IT does have a direct impact on transaction costs and is an important consideration in decisions regarding transaction costs between trading partners of unequal size.

Publication Title

Journal of Information Technology Management

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