Journal of Information Technology and Architecture (정보화연구)

Korea Institute of Enterprise Architecture (한국엔터프라이즈아키텍처학회)
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The Impact of Information Sharing Under Opportunism in Supplier-Buyer Relationships: An Empirical Analysis

  • Chang, Young Bong (School of Technology Management, UNIST (Ulsan National Institute of Science and Technology)) ;
  • Cho, Wooje (School of Technology Management, UNIST (Ulsan National Institute of Science and Technology))
  • Published : 2012.12.30
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Abstract

We examine the value of information sharing in the context of supplier-buyer relationships after controlling for trading partners' opportunism. Given that trading partners' opportunism is not randomly chosen, we explicitly incorporate their self-selection process into our estimation procedure by employing Heckman's self-selection model. According to our analysis, firms that have built safeguards via mutual trust, commitments and information sharing experience less opportunistic risk in supplier-buyer relationships. Our findings also suggest that information sharing has a positive impact on firm performance after controlling for opportunism. Further, firms that are less exposed to trading partners' opportunistic risk have achieved a higher performance than others that are more exposed. Importantly, higher performance for those firms with less opportunistic risk is driven by safeguards in supplier-buyer relationships as well as information sharing. Our findings can be applied for systems analysts to design information systems of supplier-buyer transactions.

Keywords

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