Information orientation and its impacts on information asymmetry and e‐business adoption

Abstract

PurposeTo define the term “information orientation” and to propose a model to investigate how information orientation influences information asymmetry and e‐business adoption.Design/methodology/approachThe model was tested using survey data from 307 international trading companies in Mainland China. Partial least squares was chosen to conduct data analysis in this study.FindingsResults suggested that information orientation could significantly reduce information asymmetry. This influence may be mediated by information sharing and information collection. It has been found that information orientation could also significantly influence e‐business adoption.Research limitations/implicationsFurther studies are needed regarding how information orientation and such other strategic orientations as marketing and learning orientations may interact to influence business performance and organizational innovation.Practical implicationsCompanies with stronger information orientation may have less information asymmetry problems and would be more capable to make appropriate decisions based on information. The information orientation also motivates the e‐business adoption, which in turns would help the company to share information among supply chain members and among internal employees.Originality/valueThis study provides valuable insights for managers that building a stronger information orientation may help companies motivate e‐business adoption and alleviate information asymmetry, thus improve decision‐making processes.

Supply chain performance improvement using vendor management inventory strategy

“…A fundamental requirement to achieve that is to share information among the supply chain members. For example, Hsieh et al [5] stated that information orientation and information collection could effectively reduce information asymmetry. Hou et al [6] reported that better coordination and revenue sharing could reduce lead time and transaction uncertainty in a two-stage supply chain.…”

Assessment of Quality of Warranty Policy

“…They concluded that negative information reaches and influences decisions of wider set of potential clients than positive information. Hseih, Lai, and Shi (2006) consider the impact of information asymmetry on the success in business transactions, but they do not go beyond recommendations on how to improve the information process.…”

Warranty and the Risk of Misinforming: Evaluation of the Degree of Acceptance

“…The role of information asymmetry as a source of misinterpretation, which results in misinforming and/or misleading in a sales/purchase process and might lead to wrong purchase decisions has never been studied at the level it deserves. Some authors (Hseih, Lai, & Shi, 2006) consider the impact of information asymmetry on the success in business transactions, but they do not go beyond recommendations on how to improve the information process. Mateev (2006, 2007) proposed a model to quantify the risk of misinforming, caused by information asymmetry and the current paper extends their study.…”