Information orientation and its impacts on information asymmetry and e‐business adoption

Abstract

PurposeTo define the term “information orientation” and to propose a model to investigate how information orientation influences information asymmetry and e‐business adoption.Design/methodology/approachThe 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.FindingsResults 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/implicationsFurther 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 implicationsCompanies 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/valueThis 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.