The Determinants and Effects of Relational Governance on IOS Usage in the Manufacturer-Supplier Relationships

Managing electronic cooperation in the manufacturer-supplier relationship is a key to successful development of an interorganizational systems (IOS) usage, and identifying the determinants of relational governance is important. However, limited empirical researches have been made to validate the effects of relational governance on IOS usage between trading partners. From several perspectives, We build an integrated framework, and use 2 automobile and 4 airline companies in china, 124 usable responses to empirically evaluate the model. Results show that relational governance including joint planning and joint problems solving has strong association with IOS usage in terms of advantage and diversity. Furthermore, reciprocal investment in form of IT and trust between manufacturer and supplier are proved to effective to promote IOS usage, these two determinants of relational governance have a moderating effect on the two dimensions of IOS usage . However, interdependence and uncertainty are found to be not effective to promote IOS usage.