Abstract
This study examines how information flows in product development in collaborative supply chains can be effectively managed to improve performance. Following the information processing view of the product development process, interorganizational collaboration implies that tasks and capabilities are aligned for maximum effectiveness. However, misalignment among these factors is common, resulting in (i) poor communication, (ii) inefficient information sharing, and (iii) poor access to relevant real-time information, lengthening product development times, increasing design costs, and endangering innovation and product quality. This study proposes the concept of interorganizational IT-related coordination capability, drawing upon the dynamic capabilities, coordination theory, the relational view, and IT management literatures. Alignment between coordination capabilities and task interdependencies influences supply chain performance, which is manifested as (a) faster time to market, (b) improved product quality and innovation, (c) efficiency, and (d) collaborative advantage. This study aims to theoretically develop and empirically validate the coevolutionary interrelationship between interorganizational IT-related coordination capability and task interdependence, in addition to the role of goal congruence, organizational interdependence, interorganizational trust, and relationship specific investments on facilitating coordination capabilities. This research has implications for the coordination of complex information flows in the supply chain, the utilization of IT-related coordination capabilities in interfirm new product development processes, and long-term supply chain competitive advantage.