Application of Law of Requisite Variety in Inter-Organizational Information Processing Management

By the application of law of requisite variety, this paper analyzed manufacturing inter-organizational processing management under environmental uncertainty. Data were collected from six companies. The results show that environmental uncertainty can determine the information processing management behavior significantly, Inter-organizational information processing management can determine the inter-organizational performance significantly, and marginal performance caused by inter-organizational management decreases in high environmental uncertainty. This paper testifies the validity of law of requisite variety, and explores its application in organizational research. It also presents management implications for inter-organizational management practice.