Abstract

Organizations today face great challenges from the unpredictable, globalized and competitive business environment. One of the ways that organizations achieve competitive advantages is by the adoption and diffusion of open standard inter-organizational systems (OSIOS). Despite the benefits that are promised by the adoption of OSIOS, its adoption has slowed down and there are increased cases of failure in OSIOS adoptions. In trying to explain this phenomenon, this study examines various factors relating to the social network theory and coordination theory with the adoption of OSIOS. A survey questionnaire was administered and data was collected from 101 companies in China. Using partial least square analysis, we found that extent of coordination mechanism use and tie strength are positively and significantly associated with the adoption of OSIOS. Results and implications are briefly discussed.

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