Extranet Use and Building Relationship Capital in Interfirm Distribution Networks: The Role of Extranet Capability

Samuel A. Spralls, Shelby D. Hunt, James B. Wilcox

Research output: Contribution to journalArticle

35 Scopus citations

Abstract

Firms are turning toward e-business technologies to increase efficiency and effectiveness and, thereby, acquire competitive advantage. We focus on interfirm distribution networks (IDNs) connected by extranets. Our thesis is that IDNs behave like alliances. As such, the network leader in the IDN may have an organizational capability related to developing and managing IDNs. This extranet capability is posited to positively influence three relationship capital resources (trust, information exchange, and communication quality), which, in turn, influence positively five network performance outputs (responsiveness, financial performance, efficiency, effectiveness, and innovativeness). Based on data from 175 new car sales managers, empirical tests of the hypotheses provide support for the posited explanation of IDN performance.

Original languageEnglish
Pages (from-to)59-74
Number of pages16
JournalJournal of Retailing
Volume87
Issue number1
DOIs
StatePublished - Mar 2011

Keywords

  • E-integration
  • Extranets
  • Information technology use
  • Interfirm distribution networks
  • Interorganizational systems
  • Private industrial networks
  • Relationship capital resources
  • Supply chain integration

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