This stadyattempts to deepen our understanding ofinterorganizationallearning in the disk drive industry. To do this, therelationship betweenorganiT~tionsandtheircustomersandsuppliers isinvestigatedandtheroleof1Tinthenewproductdevelopmentlearning process is evaluated. The studyinvestigates whether there is support for "virtual" interorganizational relationships based on (1) trust, (2)incompletecontracts,and(3)theuseoflTformonitoring,coordinationandcommunication;andwhetherinterorganizational learning characterized by improvements in new product time to market is facilitated by electronic virtual integration. The study focuses on the interorganizational aspects of the new product development process and assesses the strengths and limitations of IT facilitation of interorganizational learning.