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Information Technology Competence and Value Creation in Supplier-Customer Relationships
Abstract:Abstract

IT has been proven to have revolutionized business reality in its totality. As such, modern information technologies (IT) may also have an impact on business relationships. However, a detailed analysis of the impact of IT on relationships is still missing. This paper, therefore, provides a discussion of the interplay between IT and relationship variables, i.e., relationship functions, trust and relationship value. An analysis of over 100 German supplier-buyer relationships shows that the impact of IT is not as straightforward as all too often postulated. Moderate levels of IT competence are proven to be the worst-case scenario and as such the main managerial conclusion of this paper is to avoid half-hearted utilization of IT in business relationships.
Keywords:Information technology competence  trust  relationship value  German automobile industry
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