Citation

Mohtadi H. Can. J. Agr. Econ. 2008; 56(2): 163-178.

Copyright

(Copyright © 2008, John Wiley and Sons)

DOI

10.1111/j.1744-7976.2008.00123.x

PMID

unavailable

Abstract

Information sharing among firms within many industries accounts for a substantial part of the gains from information technology adoption in these industries. In this paper we examine the determinants of information sharing between retailers and their suppliers, in the food industry supply chain. Using a data set known as the Super Market Panel Data gathered by the University of Minnesota's Food Industry Center, the behavior of food retailers is examined in their adoption of information sharing technologies that facilitate vertical exchange of information with suppliers. Evidence supports the hypothesis that retail firms with larger number of suppliers are more inclined to share, rather than to withhold, information. Prior theoretical work suggests that this happens because retail firms with large number of suppliers are less concerned about opportunistic behavior of suppliers from the misuse of retailer information by the supplier. We also find that self-distribution chains are more inclined to share information. Finally, the structure of the market plays an interesting role in the type of information sharing platforms that the retailers adopt.