Extranet Use and Building Relationship Capital in Interfirm Distribution Networks: The Role of Extranet Capability |
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| Authors: | Samuel A Spralls III Shelby D Hunt James B Wilcox |
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| Institution: | a College of Business Administration, Central Michigan University, 100 Smith Hall, United States;b Texas Tech University, P.O. Box 42101, Lubbock, TX 79409, United States |
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| Abstract: | Firms are turning toward e-business technologies to increase efficiency and effectiveness and, thereby, acquire competitive advantage. We focus on interfirm distribution networks (IDNs) connected by extranets. Our thesis is that IDNs behave like alliances. As such, the network leader in the IDN may have an organizational capability related to developing and managing IDNs. This extranet capability is posited to positively influence three relationship capital resources (trust, information exchange, and communication quality), which, in turn, influence positively five network performance outputs (responsiveness, financial performance, efficiency, effectiveness, and innovativeness). Based on data from 175 new car sales managers, empirical tests of the hypotheses provide support for the posited explanation of IDN performance. |
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| Keywords: | Interorganizational systems Extranets Interfirm distribution networks Relationship capital resources Supply chain integration E-integration Private industrial networks Information technology use |
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