The Influences of Transaction and Partnership Characteristics on Interorganization System Integration in Manufacturer-Supplier Dyads

Abstract
The inter-organizational systems (IOS) are
considered to be the most important instrument that
can link manufacturers and suppliers in the supply
chain. When the Internet expands, the role of IOS
moves from being merely an operational tool to
becoming a collaborative commercial instrument, thus,
to improve the integrate effectiveness of the supply
chain. This study emphasizes two major dimensions:
transaction and partnership, as the main factors which
affect IOS integration in manufacturer-supplier dyads.
Based on a survey of Taiwanese electronics firms,
the empirical results show that there are five factors
positively affecting the IOS integration, including the
complexity of components, component criticality, trust,
supplier dependence and supplier investments. The
variables of market variability have negative effects on
the IOS integration. In this study, partnership
characteristics are more important than transaction
ones. Keeping collaborative relationship will improve
the depth of IOS integration.

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