THE IMPORTANCE OF RELATIONSHIP MANAGEMENT IN ESTABLISHING SUCCESSFUL INTERORGANIZATIONAL SYSTEMS
The strategic management literature often cites interorganizational systems (IOS) - automated information systems shared by two or more organizations - as examples of information technology used for competitive advantage, However, there is increasing awareness that IOS are becoming a strategic necessity and that their organizational impact demands attention, Examples show that IOS offer opportunities for enhanced organizational design. At the same time, however, IOS lead to mutual dependence between participating organizations that potentially limits their adaptability, This makes management of relationships between IOS participants a key issue in establishing and managing successful IOS. To gain a better understanding of this issue, it is important to go beyond existing functional typologies of IOS, A framework of different contexts of IOS usage is presented that helps in assessing the importance of relationship management between different groups of IOS participants, The framework classifies IOS contexts along two dimensions. First, does the system give the user a competitive advantage, or is it a strategic necessity for participating in the industry? Second, is the system an adjunct to the IOS provider's primary product, or does it constitute a stand-alone business? The author concludes that trust between IOS participants is essential for successful IOS, Analyzing IOS from the perspective of relationship management yields potential win-win outcomes amid all the rhetoric about the competitive battlegrounds.
interorganizational systems organizational impact of information technology strategic use of information technology