The Impacts of Electronic Collaboration and Information Exploitation Capability on Firm Performance

Abstract

We defined electronic collaboration as consisting of two major activities: electronic information sharing (EIS) and electronic cooperation (ECo). We evaluated the extent of EIS and ECo that suppliers contribute to their development of an information exploitation capability (IEC). This capability enables them to utilize internally both information and knowledge created from electronic collaboration. We assessed the effects of electronic collaboration activities and IEC on a firm performance. We collected surveys from 169 firms, and conducted a Structural Equation Model analysis. The results of the statistical analysis indicated that electronic information sharing exerts a clear effect on electronic cooperation. Electronic information sharing and electronic cooperation are major sources for the development of information exploitation capability. Both electronic cooperation and information exploitation capability result in improved company performance. We determined that the information exploitation capability has a partial mediating effect between electronic information sharing and electronic cooperation on firm performance.

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