Market performance

The firm's market performance, the outcome variable in this study, is assessed by sales growth, market share, market development, and product development (Sarkar et al., 2001; Venkatraman and Ramanujam, 1986). It is linked to IT adoption through the influences of firm coordination as well as partner coordination. According to the literature, EDI, an IT application in SCCS, enables channel partners to be responsive to customer requests (Rogers et al., 1993). Particularly, enhanced coordination activities stemming from information technology lead to on-time delivery, efficient ordering procedures, and customer responsiveness (Stank et al., 1999a). Therefore, firm coordination is expected to contribute to its market performance (Mohr and Nevin, 1990; Stank et al., 1999a). In a similar vein, Lewis (2001, p. 7) claims that IT allows firms to engage in "large scale tracking of customer preferences," which should be associated with coordination activities and ultimately affects firm performance. Therefore:

H3. Firm coordination leads to enhanced market performance.

A similar argument can be made regarding the effect of partner coordination on market performance of the focal firm. Whether it is a supplier or buyer of the firm, an enhancement in a channel partner's coordination helps reach end-customers of the supply chain more effectively (Bowersox et al., 1999; Clemons and Row, 1992; Lewis and Talalayevsky, 1997). For instance, offering a preferred type of product to the customers right time through enhanced SCCS will help expand market share and increase sales of the supply chain (Clemons and Row, 1992; Lewis and Talalayevsky, 1997) and, thus, of the focal firm. Hence:

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

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