How IT capability misalignment between buyers and suppliers affects product co-development: an information processing theory perspective

Purpose Grounded in information processing theory, this research aims to explore (1) how information technology (IT) capability misalignment between buyers and suppliers affects product co-development and (2) how buyer-driven decision making, contract formalization and market uncertainty moderate this relationship. Design/methodology/approach The study employed multiple hierarchical regression analyses with survey responses from 204 buyer–supplier dyads in China. Findings The results show that IT capability misalignment negatively affects product co-development. Moreover, buyer-driven decision-making and contract formalization mitigate this adverse effect, whereas market uncertainty intensifies it. Originality/value This study introduces a dyadic perspective that shifts the traditional firm-level focus to the interfirm level, thereby enriching the understanding of how IT capability across organizational boundaries shapes collaborative outcomes in buyer–supplier relationships. It also sheds light on the dark side of IT capability in collaborative settings. Furthermore, the study strengthens the explanatory power of information processing theory in cross-organizational contexts and deepens understanding of how to manage interorganizational innovation in supply chains, thereby advancing research on supply chain management.