This research applies the dynamic capability perspective to examine the strategic impact of inter-organizational information systems (IOIS). Inapplying this perspective we argue that the value of IOIS resides in effective IOIS implementation and utilization in pursuit of superior organizational performance. This research identifies and empirically tests the impacts of information technology competence, business process reengineering, interorganizational collaboration, and inter-organizational knowledge synergy on organizational performances. The quantitative analysis shows that information technology competence and business process reengineering are important antecedents driving the inter-organizational collaboration and knowledge synergy. Furthermore, business process reengineering, inter-organizational collaboration, and interorganizational knowledge synergy influence organizational performance positively.