Abstract

Organizations today face a great challenge from the unpredictable, globalized and competitive business environment. One of the ways that organizations achieve competitive advantages is through the adoption of open standard inter-organizational systems (OSIOS) and its diffusion across supply chains. 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 understand some of its drivers, this study examines various factors relating to the social network theory and coordination theory with the assimilation of OSIOS. A survey questionnaire was administered, collected from 101 companies in China, and examined as a pilot study. Using partial least square analysis, we found that while extent of coordination mechanism plays a role in both adoption and diffusion, tie strength only affects the latter. Results are briefly discussed.

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