The Effects of Electronic Collaboration on Interorganizational Learning and Firm Performance

In this study, we empirically assessed the effects of electronic collaboration on interorganizational learning and firm performance. Electronic collaboration refers to joint activities such as joint planning, coordination activity, and advertisement and promotion conducted via Interorganizational Information Systems (IOIS). Interorganizational learning (IOL), as defined in previous research, consists of three sub-constructs: information sharing, the development of relational memory, and shared meaning for mutual understanding.In order to test the proposed model and hypotheses, we collected data across various South Korean industries. The results showed that, first, electronic collaboration contributes to facilitated information sharing, relational memory, and shared meaning. Secondly, information sharing is a starting point for IOL. That is, the development of relational memory is predicated on shared information, and shared meaning is developed on the basis of relational memory. Finally, only shared meaning among sub-constructs consisting IOL was shown to improve firm performance. For firm performance, electronic collaboration is not effective when IOL is considered. Electronic collaboration using IOIS is not sufficient to create firm performance. Therefore, firms should attempt to find a strategic use of IOIS. This study indicates that IOL may prove to be a valuable method for the more strategic use of IOIS, in broader attempts to improve firm performance.