This study aims to investigate how information technology (IT) integration and relational ties between a firm and its supplier influence its innovation performance and how such relationships are moderated by relationship duration and institutional distance between the firm and its supplier.
Based on 153 matched-pair surveys of firms in China, the authors used regression analyses to test their hypotheses.
The authors find that IT integration and relational ties with the supplier significantly improve the firm’s innovation performance. Further, the authors find that relationship duration negatively moderates the impact of relational ties on innovation performance. Institutional distance negatively moderates the impact of IT integration, yet positively moderates the impact of relational ties on innovation performance.
This study provides a more nuanced insight into relational and institutional boundary conditions under which IT integration and relational ties affect innovation performance.
