Information sharing, buyer‐supplier relationships, and firm performance

Purpose The purpose of this paper is to examine the effects of information sharing capability on buyer‐supplier relationships and firm performance. It is proposed that information sharing capability, the integration of a firm's information/decision systems and business processes with those of supply chain partners, is an antecedent of collaborative buyer‐supplier relationships, defined in terms of supply chain and relationship architecture. Further, it is proposed that these relationships positively impact a firm's market and financial performance. Design/methodology/approach This research uses multiple linear regression to analyze a set of survey data from the USA, Europe and New Zealand. Findings Results demonstrate positive relationships between information sharing capability and buyer‐supplier relationships, and between relationships and performance. Research limitations/implications Information sharing capability and buyer‐supplier relationships are complex, multi dimensional constructs. While this research highlights their role in driving performance, further study is required to more fully capture their impact and to understand the implications for situational factors such as industry sector and transaction type. Practical implications Results from the study provide academics and policymakers with insights into key information sharing constructs related to the development of buyer‐supplier relationships. These provide guidance in developing the infrastructure to support such relationships. Originality/value This study adds to the extant literature by examining the dimensions of information sharing related to buyer‐supplier relationships and performance.