The impact of interorganizational internet communication on purchasing performance : A study of Chinese manufacturing firms

This study investigated the effect of interorganizational Internet communication on purchasing performance. On the basis of a review of the relevant literature, three key dimensions of Internet communication behaviors were identified: frequency, diversity and formality. A model was developed to depict the antecedents of interorganizational Internet communication and the impact of such communication on purchasing performance. Responses from 284 Chinese manufacturing firms were used to test the study's hypotheses. Results revealed that the frequency, diversity and formality of Internet communication played an important role in determining the level of purchasing performance. Additionally, formality was critical to managing information flows over the Internet and preventing potential Internet information security risks. Further, results indicated that two factors, perceived Internet security risks and norms of Internet information sharing, significantly influenced Internet communication behaviors. Copyright © August 2006, by the Institute for Supply Management, Inc.™.