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In this paper we present an improved hedonic price regression for cases in which many implemented technological characteristics are to be included into a set of explanatory variables. This approach modifies Massy's (1965) principal components regression in which original dummy explanatory variables corre sponding to the characteristics are transformed into principal components. The selected subset which we obtained from the principal components regression was further orthogonally rotated by Kaiser's (1957) varimax criterion in order to reconstruct explanatory variables with a simple structure for the final hedonic regression, resulting in a more straightforward understanding of hedonic regres sion in the case of many explanatory variables. This approach is applied in order to compare different pricing strategies in the digital still camera industry, where the products contain 35 different technical attributes. The pricing strategies were measured using relative errors; differences between log actual prices and log quality-adjusted prices were identified using hedonic regression. The result shows that those companies, which have priced their products cheaper than the value of contained technologies, or than the prices of competitors, seem to have gained a larger market share. G raduate School of Systems Management. University of Tsukuba. Tokyo. Request for reprints should be sent to Michiko l\liyamoto 1-20-3-901 Ebisu-Nishi, Shibuya-ku. Tokyo. 150-0021. Japan. The authors are grateful to Professor Tadashi Yoshizawa and three anonymous referees for helpful comments and suggestions for the earlier drafts. 'See , e.g., Spady and Friedlaender (1978), Witte, Sumka, and Erekson (1979), Gibbons.Coombs. Saviotti. and Stubbs (1982) and Tremblay (1985) for a description and application of this technique. Hedonic methods have been officially adopted in the United States to measure the change in computer prices, and similar attempts are seen for the Japanese computer markets (Cole et al

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After analyzing the literature on IT failures, we have developed a failure model of ERP implementation with the system failure notions that defined by Saucer (1996) along with the Davis's three stages model (1974). A structural equation modeling (SEM) was used to test the framework with data from 266 ERP-user in Japan. The results imply the managerial implication for ERP vendors, such as lowering annual operating cost, maintenance fee, fees associated in interface systems, as well as improving vendor support will reduce some difficulties in ERP implementation.

This paper structures and analyzes empirical evidence in IT business value research which is theoretically guided by the intangibility of a firm's resources from the resource-based view (RBV) to find out how different companies' resources affect the IT business value in terms of competitive advantage. The empirical study uses 2,869 SEMs' survey data from the Human Capital Corporate Panel survey of Korea in 2005. Among the variables in the competitive factors, a relationship between "differentiation/ diversification and quality /customer," "differentiation/ diversification and leadership/reliability," "quality/customer and cost efficient," and "quality/customer and leadership/reliability" are strong, positive and significant. As for IT related variables, there is a positive and significant relationship with "differentiation/diversification" and a significant, strong, but negative relationship with "leadership/reliability."