Do organisational and environmental factors moderate the effects of Internet-based interorganisational systems on firm performance?

Abstract

We developed a model of the relationships among several organisational, interorganisational and technological factors, the adoption of Internet-based interorganisational systems (IBIS) and various measures of firm performance. We used structural equation modelling to empirically test these relationships. The findings showed that adopting IBIS indirectly improves the operational performance of firms through business process performance. The positive effect on financial performance of adopting IBIS is not direct, but through the mediating effects of operational performance and business process performance. We also utilised multiple group analysis to test some of the model relationships across firms using several organisational and environmental factors as moderators. The organisational factors tested are firm type, age and ownership type. The environmental factors consisted of dynamism, complexity and hostility. We found that the organisational factors are significant moderators and that complexity and hostility are not significant moderators. However, the effects of dynamism as a moderator are less clear.

Keywords:

• information technology
• interorganisational systems
• supply chain management
• Internet
• e-commerce
• survey

Additional information

Notes on contributors

Ismail Sila

About the author

Ismail Sila is an associate professor of Operations Management at the University of Saskatchewan's Edwards School of Business. His research focuses on supply chain management, quality management and e-commerce. His research has been published in journals such as Journal of Operations Management, International Journal of Operations & Production Management, International Journal of Production Research and Supply Chain Management: An International Journal.