Information processing view of organizations: An exploratory examination of fit in the context of interorganizational relationships

    Authors

    G. Premkumar; K. Ramamurthy;C. S. Saunders

    Comments

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    Abbreviated Journal Title

    J. Manage. Inform. Syst.

    Keywords

    B2B; cluster analysis; information processing capability; information; processing needs; information processing theory; interorganizational; systems; strategic fit; supply chain; BUYER-SELLER RELATIONSHIPS; BUSINESS; UNCERTAINTY; TECHNOLOGY; STRATEGIES; ADOPTION; MARKETS; SYSTEMS; MODELS; DETERMINANTS; Computer Science, Information Systems; Information Science & Library; Science; Management

    Abstract

    This study uses Galbraith's information processing theory to examine the fit between information processing needs and information processing capability in an interorganizational supply chain context and to examine its effect on performance. Information processing needs are assessed based on various characteristics of the product and procurement environment and information processing capabilities are assessed by the level of information technology support for various activities in the procurement life cycle. A taxonomy of information processing needs and information processing capabilities is developed. The effect of the fit between information processing needs and capabilities on procurement performance is examined. The study collected data on 142 products through personal interviews and surveys, used cluster analytic techniques to develop taxonomies, and analysis of variance (ANOVA) to test the fit between needs and capability, modeled as an interaction effect. The results reveal two clusters for information processing needs and three clusters for information processing capability. ANOVA results show that the interactive effect of information needs and capability has a significant effect on performance, supporting our fit theory.

    Journal Title

    Journal of Management Information Systems

    Volume

    22

    Issue/Number

    1

    Publication Date

    1-1-2005

    Document Type

    Article

    Language

    English

    First Page

    257

    Last Page

    294

    WOS Identifier

    WOS:000230525900009

    ISSN

    0742-1222

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