Trust, Dependence and Global Interorganizational Systems

Previous research has emphasized the importance of dependence and trust on interorganizational systems. This paper focuses on how dependence and trust impact various types of investments in IOS related resources and how these investments produce benefits within a global context. A conceptual model is constructed combining transaction-cost economics, resources-based view, trust and dependence. Four explorative case studies are conducted on interorganizational systems employed within a global context. Dependent organizations are found to conduct the needed investments and to use different types of resources depending on the requirements of the powerful organization. Competence-based trust is found to influence human-based resources and resources that enable domain-knowledge transfer. Reliability-based trust is found to influence human-based resources and resources that enable interlinking processes. Combinations of human-based resources and resources that enable domain-knowledge transfer or business-process linkage are found to produce strategic benefits. The lack of human-based resources is found to produce only operational benefits.