The Combined Effects of Power Imbalance and Mutual Dependence on the Relationship between IOS Diffusion and a Firm’s Performance Improvement

This paper draws on the interdependence theory to examine the role of power and mutual dependence on the relationship between internal/external diffusion and performance improvement within a supply chain. The results from a survey of 375 respondents show that two patterns of IOS diffusion – internal diffusion and external diffusion – have different impacts on a firm’s performance improvement according to differences in power and mutual dependence between two parties in the supply chain.