INTERORGANIZATIONAL INFORMATION-SYSTEMS AND THE STRUCTURE AND CLIMATEOF SELLER BUYER RELATIONSHIPS

A model was developed to show the association between specialized inve stments in an Interorganizational System (IOIS) and the structure and climate of the relationship between the participating organizations. F our hypotheses were proposed: In a seller-buyer relationship, speciali zed IOIS investments are associated with: 1) decreased control over de cision making for the firm making the specialized investments; 2) incr eased formalization of transactions; 3) increased vertical interaction s; and 4) under certain conditions, a more positive transactional clim ate. Structural Equation Modelling (SEM) techniques were used to test the model. Data was collected through a questionnaire survey of indepe ndent agencies in the property and casualty insurance industry. The fi ndings suggested that the first and second hypotheses were not support ed, whereas the third and fourth hypotheses received considerable supp ort.