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Information orientation and its impacts on information asymmetry and e‐business adoption: Evidence from China's international trading industry

Chang‐Tseh Hsieh (College of Business, University of Southern Mississippi, Hattiesburg, Mississippi, USA)
Fujun Lai (College of Business, University of Southern Mississippi – Gulf Coast, Long Beach, Mississippi, USA)
Weihua Shi (College of Business, University of Southern Mississippi – Gulf Coast, Long Beach, Mississippi, USA)

Industrial Management & Data Systems

ISSN: 0263-5577

Article publication date: 1 July 2006

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2041

Abstract

Purpose

To define the term “information orientation” and to propose a model to investigate how information orientation influences information asymmetry and e‐business adoption.

Design/methodology/approach

The 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.

Findings

Results 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/implications

Further 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 implications

Companies 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/value

This 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.

Keywords

Citation

Hsieh, C., Lai, F. and Shi, W. (2006), "Information orientation and its impacts on information asymmetry and e‐business adoption: Evidence from China's international trading industry", Industrial Management & Data Systems, Vol. 106 No. 6, pp. 825-840. https://doi.org/10.1108/02635570610671506

Publisher

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Emerald Group Publishing Limited

Copyright © 2006, Emerald Group Publishing Limited