The impact of inter-organizational information systems-enabled external integration on capabilities of buyer-supplier dyads

Increasingly, firms are adopting two major supply chain management initiatives: to undertake external integration with supply chain partners and to implement inter-organizational information systems (IOSs). However, academic researchers have not adequately investigated effects of these types of initiatives. Using empirical data from 154 buyer-supplier dyads, we examined the direct and indirect effects (through external integration) of IOS usage on capabilities of buyer- supplier dyads. We found that external integration plays a mediating role in the relationship between IOS usage and capabilities of buyer- supplier dyad. This is the first study to investigate the effects of IOS usage and external integration on capabilities of buyer-supplier dyad.