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The Influences of Transaction and Partnership Characteristics on Interorganization System Integration in Manufacturer-Supplier Dyads

The inter-organizational systems (IOS) are considered to be the most important instrument that can link manufacturers and suppliers in the supply chain. When the Internet expands, the role of IOS moves from being merely an operational tool to becoming a collaborative commercial instrument, thus, to improve the integrate effectiveness of the supply chain. This study emphasizes two major dimensions: transaction and partnership, as the main factors which affect IOS integration in manufacturer-supplier dyads.Based on a survey of Taiwanese electronics firms, the empirical results show that there are five factors positively affecting the IOS integration, including the complexity of components, component criticality, trust, supplier dependence and supplier investments. The variables of market variability have negative effects on the IOS integration. In this study, partnership characteristics are more important than transaction ones. Keeping collaborative relationship will improve the depth of IOS integration.