Week 2_Im and Rai (2014)_Jung Kwan Kim

Im and Rai (2014) examine the IOS (interorganizational systems) regarding the impact on relationship performance and quality mediating through contextual ambidexterity. The authors support that the enhancement of contextual ambidexterity leads to better relationship performance and quality. The rationale is that contextual ambidexterity helps partners align resources and actions and that it leads them to adapt the relationship to broader changes.

This positive association is manifested through 3 sets of findings. First, OSS use cultivates contextual ambidexterity on the customer side while the vendor sides enjoy more positive benefits with longer duration of relationship. This is possibly because OSS places a greater resource burden and hold-up risk on the vender.

Second, ISS use fosters the benefits to both of the sides while the benefit of the customer is not significant as the relationship ages. This finding seems to support the contextual knowledge that accumulated over time becomes more valuable for the vendor.

Third, interdependent decision making facilitate the benefits on both of the sides, but the duration does not moderate the effect, implying that the synergies between alignment and adaption show up even from the early period.

In conclusion, contextual ambidexterity enables IORs (interorganizational relationships) to achieve performance benefits and enhances relationship quality from the perspectives of both customers and vendors; IT-enabled coordination mechanisms and interdependent decision making promote contextual ambidexterity on the side of customers. IORs accumulate relationship-specific resources that are instrumental in leveraging OSSs and ISSs to achieve synergies between alignment and adaptation for the vendor. All in all, IS use at both the operations and sensemaking levels plays a major role in enabling contextual ambidexterity and increasing the value derived from IORs for both the vendor and the customer.