The Impact of Internet Use on Inter-Firm Relationships in Australian Service Industries

Abstract

The impact of the internet on inter-firm relationships has received little attention in the academic literature. This theory building research develops a conceptual framework about internet-facilitated relationships based on the literature and research findings from convergent interviews. The convergent interviews were conducted with CEOs and/or marketing managers of 10 Australian service companies. Results show that the internet does not appear to hinder inter-firm relationships as the internet is not being used at the expense of more traditional and personal forms of communication and has little impact on the level of trust in internet exchange partners and the dependence they have on one another at this relatively early stage of adoption. Rather, internet use is thought to be linked with improved business performance and satisfaction with the exchange partner's performance. The findings of this research add to the body of marketing knowledge and provide guidelines for managers to more effectively use the internet in managing their relationships with other businesses.