Benchmarking firms' operational performance according to their use of internet-based interorganizational systems

Purpose - Drawing on the concepts of benchmarking and of fit as profile deviation, the purpose of this paper is to identify the critical dimensions of usage of internet based interorganizational systems (IOISs) of the best performing firms. Design/methodology/approach - Empirical evidence is gathered through an electronic survey conducted with 228 manufacturers in the computer and electronic product manufacturing sector. Findings - Data collected demonstrates that: volume of use and depth of use are the two critical dimensions of internet based IOISs usage on the supplier side; volume of use, level of integration, diversity of types and depth of use are the four critical dimensions of internet based IOISs usage on the customer side; and a deviation from these patterns of internet based IOISs usage should result in poorer operational performance. Statistical analyses also show the relative importance of each of the critical dimensions of internet based IOISs usage on both the supplier and customer sides of the supply chain. Practical implications - The paper findings indicate that manufacturers in the computer and electronic product manufacturing sector should not approach their supply chain management and eBusiness strategies from a single business network perspective; rather, they must take into account the specificities of their downstream supply chain to implement an internet based IOIS strategy that will satisfy the diversified needs of their customer base. Originality/value - This paper is the only one to date that draws on both a benchmarking approach and contingency theory to assess the impact of internet based IOISs usage on a firm's operational performance.