Adoption and Impacts of Interorganizational Business Process Standards: Role of Partnering Synergy

N potential benefits, such as quality of interorganizational relationships and operational and strategic gains, adoption of information technology (IT)-enabled interorganizational business process standards (IBPS) is still limited. Given that these standards are designed for interorganizational business processes, we suggest that adoption of these standards depends not only on the factors pertinent to a focal firm but also on factors that represent synergies between a focal firm and its trading partners. In this paper, building on the technological, organizational, and environmental (TOE) framework and interorganizational theories, we propose a model that postulates that a set of TOE factors will have synergistic effects (i.e., interactions between a focal firm’s and its partner’s factors) on IBPS adoption. We tested our model in a study of 248 firms (124 dyads) in the high-tech industry implementing RosettaNet-based IBPS and found that three TOE factors (i.e., process compatibility, standards uncertainty, and technology readiness) had synergistic effects and two factors (i.e., expected benefits and relational trust) had direct effects on IBPS adoption. We also found that IBPS adoption led to greater relationship quality (i.e., partnering satisfaction) and operational efficiency (i.e., cycle time). Further, we found that IBPS adoption mediated the effect of TOE factors on partnering satisfaction and cycle time.