Partner criticality as a moderator

Firms work with numerous channel partners. However, not all of them are equally critical for the success of their business (Anderson et al., 2001). According to Turnbull and Gibbs (1987), firms are likely to exchange varying amounts of business information with channel partners depending upon the role and importance of the partners, which implies that the criticality of the partner will affect coordination activities. For example, one of the managers we interviewed suggested that automakers often do not share their specific production plans with all of their tier 1 suppliers because sharing too much information with partners through coordination activities could result in leaking their core competencies (Clemons and Row, 1992). In a similar vein, Morgan and Hunt (1994, p. 22) in their empirical study report that "shared values" and "relationship benefits" perceived by

Daekwan Kim, S. Tamer Cavusgil and Roger J. Calantone channel partners influence commitment and trust between them. In other words, the criticality of the channel partner is likely to determine the other partner's commitment to the relationship including coordination activities in an effort to strengthen the relationship (Anderson et al., 2001).

Subsequently, the impact of IT adoption on coordination activities of a firm and its partner and, thus, on firm performance is expected to be a function of the criticality of the partner. However, due to lack of research attention in the literature on the issue, we are unable to identify specific links between adoption of IT for SCCS and firm market performance where partner criticality functions as a moderator. Thus, we offer the following hypotheses: H5a. The more critical its partner is to a firm, the stronger the positive influence of IT adoption on firm coordination.

H5b. The more critical its partner is to a firm, the stronger the positive influence of IT adoption on partner coordination.

H5c. The more critical its partner is to a firm, the stronger the positive influence of firm coordination on market performance.

H5d. The more critical its partner is to a firm, the stronger the positive influence of partner coordination on market performance.

0 0

Post a comment