Business-to-business integration—the mediating effects of network structure and network atmosphere

Abstract

Current research in interorganizational information systems (IOS) for B2B eCommerce tends to focus on the factors that lead to the intention to adopt these systems. One important factor is the IT capability of a network member in the supply chain, but the extant literature is silent on the nature of the link between this factor and the intention to adopt. This paper contributes to the research literature by a critical approach that examines in detail the structure, dynamics and complexity of the link between them. Based on the literature review we suggest six mediating factors between IT capability and its intention to increase the sophistication of its business-to-business integration (B2Bi). We develop a relational model of network atmosphere and network structure, which between them, encompass these factors. Based on the model and previous research findings, we justify 12 propositions grouped into three sets which has the following contributions. First, it has proposed an integrated model which allows us to understand the interaction between factors in a firm's environment and factors inside a firm. Second, the structural model has firstly posited external factors as the mediating variables interacting with each other along the proposed links. Third, the study suggests that the state can play a significant role in enhancing the capability of channel stakeholders in the new economy associated with B2Bi.

Keywords:

• Business-to-business integration
• Business network
• Interorganizational information systems (IOS)

Acknowledgments

Dr. William Y.C. Wang is a course coordinator/lecturer in the Department of Management Information Systems, Yuan-Pei University of Science and Technology, Taiwan. With his experience of being a telecom and computer engineer, the author has been supervising research groups in Taiwan in the field of B2B integration, interfirm dynamics, and information strategy. He also plays the role of consultant of industrial projects for BRP, global logistics management, and SCM. Focusing on the interaction and business network boundaries, he has done research in the field of information systems analysis, B2B eCommerce, and supply chain management for large firms and SMEs. His papers have appeared in Journal of Electronic Commerce Research, Supply Chain Management—an International Journal, a book chapter of Electronic Commerce in Small to Medium-Sized Enterprises: Frameworks, Issues and Implications, and the proceedings of several international conferences.

Dr. Michale S. H. Heng is an associate professor of Information Systems at the University of South Australia. He holds a BSc in Physics, MSc in computer studies and PhD in information systems. He was the co-chair of the program committee of Pacific Asian Conference on Information systems in 2003, and associate editor of the Journal of Electronic Commerce Research, and of Electronic Commerce Research and Applications. His research papers have appeared in Information and Organization, Information Systems Journal, Information and Management, Journal of Strategic Information Systems, Communication of AIS and Journal of Electronic Commerce Research.

Dr. Chien-Ta Ho is an assistant professor in the Institute of E-Commerce at the National Chung Hsing University. His current research interests include performance evaluation and operations management. Dr. Ho's work has appeared in the Asia Review of Accounting, Benchmarking: an International Journal, Journal of Air Transport Management, International Journal of Productivity and Performance Management, International Journal of Management and Enterprise Development, Journal of Hospital, Web Journal of Chinese Management Review, The Journal of Tokyo International University and others. He has presented papers at numerous conferences; his paper ‘Performance Measurement for Taiwan's Commercial Banks’ was given the Highly Recommendation Paper Award by Emerald Publishing at the Business Excellence Conference, University of Minho, Portugal, 2003.