Determinants and consequences of information sharing with key suppliers

Citation

(2012), "Determinants and consequences of information sharing with key suppliers", Journal of Accounting & Organizational Change, Vol. 8 No. 4. https://doi.org/10.1108/jaoc.2012.31508daa.003

Determinants and consequences of information sharing with key suppliers

Article Type: Doctoral research abstracts From: Journal of Accounting & Organizational Change, Volume 8, Issue 4

Purpose – The purpose of this thesis is to explain variations in discretionary information shared between buyers and key suppliers. The study also examines how the extent of information shared affects buyers’ performance in terms of resource usage, output and flexibility.Design/methodology/approach – The data for the study comprises of 221 Finnish and Swedish non-service companies obtained through a mail survey. The hypothesized relationships were tested using partial least squares modelling with reflective and formative constructs.Findings – The results of the study suggest that (environmental and demand) uncertainty and interdependency can to some degree explain the extent of information shared between a buyer and key supplier. Furthermore, information sharing improves buyers’ performance with respect to resource usage, output, and flexibility.Research limitations/implications – A limitation to the study relates to the data, which only included buyers. A better approach would have been to collect data from both, buyers and key suppliers.Practical implications – Companies face a wide range of supply chain management options (e.g. open-book accounting, collaborative planning) that encourage collaboration across organizations. This study suggests a more selective and balanced approach toward adopting the solutions available as the benefits may be contingent on a number of factors such as uncertainty and asset specificity. Also, the risks of information sharing are far too high for a one size fits all approach.Originality/value – This research illustrates the applicability of transaction cost theory (TCE) to the contemporary era of e-commerce. With this finding, TCE can provide a valuable lens with which to view and interpret interorganizational information sharing, a topic that has received much attention in the recent years.

Keywords: Information sharing, Suppliers, Buyers, Flexibility, Finland, Swedan

Research type – Quantitative ResearchE-mail: Ogan.yigitbasioglu@qut.edu.auOgan YigitbasiogluSchool of Accountancy, Queensland University of Technology, Brisbane,Australia