With the emergence of the internet, interorganisational interactions are significantly going digital. However, researchers are strongly divided over the effect of the internet on firm performance.
This theoretical paper discusses the effect of internet usage for transactions, communications and marketing between value chain partners, on interfirm relationship and performance. This analysis is done holistically through the theoretical lens of computer mediated communication, knowledge management, organisational learning, and the resource-based view.
The paper’s argues that internet usage between partner firms does have a positive effect on information sharing and joint problem solving, in turn positively affecting interfirm relationship and performance. Propositions and a theoretical framework of internet driven management of interfirm relationship and performance are developed to reflect these effects.
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