Purpose As organizations increasingly adopt interorganizational information systems, the subsequent impacts on organizational capabilities and the potential displacement of employees remain unclear. To address this gap, this study aims to evaluate the effects of such adoption on boundary-spanning employees who collaborate with supply chain partners. Design/methodology/approach We develop grounded theory via the Straussian approach with guided, semi-structured interviews with mid- to senior-level supply chain executives. Findings Interorganizational information systems cannot do the job alone. Such systems can automate some operational processes formerly performed by boundary spanners but also elevate strategic boundary-spanner responsibilities in knowledge exchange and trust building with supply chain partners. The combined interorganizational information systems-human solution enhances collaboration with supply chain partners, improving organizational knowledge management and agility capabilities while enhancing organizational performance and innovation. Originality/Value The theoretical framework highlights how the unique and complementary competencies of interorganizational information systems and boundary-spanning employees are best suited for collaborative activities to improve supply chain capabilities.