Discussion and implications

This study is a preliminary attempt to explore the impact of IT adoption on partner coordination. While the dyadic nature of supply chain relationships implies simultaneous impact of IT adoption of a channel member on both the adopting firm and its partner, it has not received significant research attention. As a pioneering work to investigate the empirical relationship between IT adoption of a channel member and its partner coordination activities, this study contributes to the literature by reporting a positive effect of IT adoption on partner coordination activities.

As the results suggest, IT adoption for SCCS enhances coordination activities within the supply chain. This is evidenced by the positive impact of IT adoption on its own coordination as well as the coordination activities of its partner. Despite the IT paradox reported in the literature (Brynjolfsson, 1993; Brynjolfsson and Hitt, 1996; Kettinger et al., 1994; Loveman, 1991; Mukherjee, 2001; Panko, 1991; Powell and Dent-Michallef, 1997; Rai et al., 1996; Roach, 1987; Strassmann, 1990), the present study suggests that

Table III Proposed hypotheses and test results

Hypotheses

Standardized parameter estimate

Conclusion

H1. IT adoption for SCCS enhances firm coordination

H2. IT adoption for SCCS improves partner coordination

H3. Firm coordination leads to enhanced market performance

H4. Partner coordination leads to enhanced market performance of the firm

Supported Supported Not supported Supported

Notes: Structural model goodness of fit indices: chi-square = 148.441 on 72 df; TLI = 0.945; CFI = 0.957; SRMR = 0.072; RMSEA = 0.076. * p < 0.01

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