Applying internet‐based information systems to facilitate business alliance activities

Purpose – The purpose of this study is to explore the feasibility of applying an internet‐based information system (IBIS) to facilitate business alliance activities, especially for small and median enterprises whose business performance is highly dependent on their strategic alliance partnerships. Design/methodology/approach – A case study of six firms was conducted to understand current business alliance practices in Taiwan and to investigate the demand for applying IBIS systems in business alliance activities. A prototype of the IBIS system was also developed and evaluated. Findings – We found that communication and information sharing are the most appropriate activities in business alliances for the application of an IBIS system and that the decision to adopt an IBIS system is dependent on the allied partners' support and the technological capabilities they possess. However, the lack of trust in internet security is one of the key factors that may hinder enterprises from applying the IBIS system to business alliance activities. Research limitations/implications – The prototype IBIS system was tested by two case firms. Though the test result was positive, a larger test group might be helpful in discovering ways of improving the system for practical use. Practical implications – The positive result of the system evaluation supports the feasibility of applying the IBIS system to facilitate business alliance activities. Originality/value – Both the IBIS system and strategic alliance are important research issues in business. However, integrative research of the two issues is seldom undertaken. This study validates the feasibility of applying the IBIS system to increase the operational efficiency of a strategic alliance.