An empirical investigation of antecedents to information exchange in supply chains

Abstract

In this investigation, following the principal-agent theory, possibilities to reduce existing information asymmetries are derived and their effects on the information exchange are examined. Results of an empirical investigation based on a structural equation model confirm that monitoring measures and frequent meetings positively influence the exchange of information while explicit contracts have rather negative effects. Premiums and specific investments, however, seem to play insignificant roles. Measures, such as building a reputation mechanism, will probably prove to be effective only in the long run.

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