Diversity in business-to-business information exchange: An empirical analysis of manufacturers and their trading partners

Abstract

This article examines the performance implications of information exchange in industrial supply chains. While existing literature has addressed the critical role of information exchange in supply chain integration, existing studies fail to address the specific characteristics of information exchange that affect performance. Through a transaction cost economics theoretical lens, hypotheses are developed and tested to explore the effects of information volume and information diversity on firm performance. The hypotheses are tested using an original dataset of twenty-three manufacturing firms that exchange information with their trading partners using an electronic intermediary. Results indicate a positive relationship for information volume and a negative relationship for information diversity as related to firm performance.