Paper ID

1677

Paper Type

full

Description

Drawing upon the boundary spanning and institutional theories, this study investigates the influence of interorganizational systems (IOS) use and interpersonal ties between a firm and its suppliers on a firm’s digital innovation and how such effects are moderated by institutional distance between the firm and its suppliers. Based on a pilot test of 123 Chinese firms, our results find that a firm’s use of IOS significantly improves its digital innovation, while interpersonal ties between the firm and its suppliers do not significantly improve the firm’s digital innovation. Further, we find that institutional distance between the firm and its suppliers differentially moderates the influences of IOS use and interpersonal ties on digital innovation. Specifically, institutional distance negatively moderates the impact of IOS use on digital innovation yet positively moderates the impact of interpersonal ties on digital innovation. We further discuss the theoretical contributions and managerial implications of the current study.

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The Impact of IOS Use and Interpersonal Ties on Digital Innovation: Insights from Boundary Spanning and Institutional Theories

Drawing upon the boundary spanning and institutional theories, this study investigates the influence of interorganizational systems (IOS) use and interpersonal ties between a firm and its suppliers on a firm’s digital innovation and how such effects are moderated by institutional distance between the firm and its suppliers. Based on a pilot test of 123 Chinese firms, our results find that a firm’s use of IOS significantly improves its digital innovation, while interpersonal ties between the firm and its suppliers do not significantly improve the firm’s digital innovation. Further, we find that institutional distance between the firm and its suppliers differentially moderates the influences of IOS use and interpersonal ties on digital innovation. Specifically, institutional distance negatively moderates the impact of IOS use on digital innovation yet positively moderates the impact of interpersonal ties on digital innovation. We further discuss the theoretical contributions and managerial implications of the current study.