The Competitive Advantage of Information Transparency: The Role of Partner-Specific Information in B2B Relationships
Theme: Business Model Innovation
Research Team: Professor Gerry George, Andreas Eisingerich
This project examineed information transparency and trust between organizations and their partners. We consider how those who are more open with their exchange partners gain a competitive advantage over those who are not, and how these trust-relationships change during the course of the collaboration. Through awareness of non-commensurate goals and priorities between the partner organisations, we assessed how institutions cope with the risk of such inter-organisational transactions. Our data came from start-up firms in India who compete in service industries, often with partners who are not geographically collocated.
We investigated the context in which organisations rely on the transparency of their partners and the impact of this on partnership commitment. We examined how organisational transparency can mutually enhance reputations, and the extent to which partners are forgiving when things go wrong. In light of potential risks and costs involved in sharing information, we evaluated how entrepreneurial firms can manage transparency to benefit from stronger, and more effective, exchanges. We aimed to provide managerial recommendations on information transparency, customer relationships, and innovation management. Our study informs the design of information transparency initiatives and joint-innovation strategies