Uses and Consequences of Electronic Markets: An Empirical Investigation in the Aircraft Parts Industry

Choudhury, Vivek; Hartzel, Kathleen S.; Konsynski, Benn R.

doi:10.2307/249552

Cited by 240 publications

(193 citation statements)

References 13 publications

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“…Likewise, Holland's (1995) finding that IOS facilitate the emergence of an integrated supply chain refutes the electronic market hypothesis. Both Clemons and Weber (1996) and Choudhury et al (1998) demonstrate that IOS may not lower transaction costs if they do not provide access to adequate market information.…”

Section: Figure 3 Relationships Investigated In Ios and Governancementioning

confidence: 99%

“…Martinsons (1992) reports how a global electronic banking system created a business presence in Asia without brick-and-mortar investment. In the aircraft parts industry, IOS are shown to reduce prices (Choudhury et al, 1998). Chatfield and Yetton (2000) report successful strategic EDI initiatives that enable fast cycle time and fast response to customer demand and new product development.…”

Section: Relationships Investigated In Organizational Consequencesmentioning

confidence: 99%

“…Turning to industry-level impacts, Pouloudi and Whitley (1997) use a social network approach to identify relevant stakeholders. They find that IOS may expand the number of stakeholders in a trading network, including market intermediaries who bring new valueadded functions like information verification, financing, and logistics management (see also Choudhury et al, 1998). Thachenkary (1992) uses Porter's industrial organization model to examine the impacts of electronic markets on the dealers, lending institutions, and customers involved in an EDI network connecting automobile dealers and lenders.…”

Section: Relationships Investigated In Organizational Consequencesmentioning

confidence: 99%

“…To some degree, studies of governance engage with IT artifacts in a useful way by focusing on the performance effects of IOS systems with different capabilities (e.g., Choudhury et al 1998). Likewise, some studies of the consequences of IOS focus on specific characteristics (e.g., Boddy, 2000) and deploy theories that explain why certain effects are associated with specific technology features.…”

Section: Engaging With the It Artifactmentioning

confidence: 99%

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Theoretical Foundations of Empirical Research on Interorganizational Systems: Assessing Past Contributions and Guiding Future Directions

Robey¹,

Im²,

Wareham³

2008

JAIS

171

196

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This paper guides the theoretical development of future research on interorganizational systems (IOS). We first assess past IOS research by reviewing and summarizing the findings of 51 empirical studies of IOS published in 11 IS journals between 1990 and 2003. This literature addresses three primary issues: (1) factors influencing organizational decisions to adopt IOS; (2) the impact of IOS on governance over economic transactions; and (3) the organizational consequences of IOS adoption. From our assessment of the findings and theoretical approaches taken in past research, we offer three recommendations for future research. First, the theoretical foundations of IOS research during this period are diverse, representing 17 different yet complementary theories. We recommend that researchers continue to diversify their theoretical approaches in order to address new research challenges. Second, we recommend that IOS researchers move beyond mere descriptions of IOS artifacts by engaging with IOS artifacts on theoretical grounds. Third, we identify and describe new theoretical directions for future IOS research in each of the main issue areas.

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Section: Figure 3 Relationships Investigated In Ios and Governancementioning

confidence: 99%

Section: Relationships Investigated In Organizational Consequencesmentioning

confidence: 99%

Section: Relationships Investigated In Organizational Consequencesmentioning

confidence: 99%

Section: Engaging With the It Artifactmentioning

confidence: 99%

See 2 more Smart Citations

Theoretical Foundations of Empirical Research on Interorganizational Systems: Assessing Past Contributions and Guiding Future Directions

Robey¹,

Im²,

Wareham³

2008

JAIS

171

196

View full text Add to dashboard Cite

show abstract

“…When electronic markets and IOS are widespread, intermediaries may not disappear -their roles can simply change (Choudhury, Hartzel and Konsynski, 1998). This suggests that intermediaries have innate strengths, such as providing aggregation (Bhargava and Choudhary, 2004), trust, lower operating costs, and matching services (Bailey and Bakos, 1997) that enable them to add value despite the presence of electronic markets and other IOS.…”

Section: Introductionmentioning

confidence: 99%

Electronic Markets, Search Costs and Firm Boundaries

Shankar

Sundararajan

2005

SSRN Journal

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Abstract. We study how electronic markets that facilitate broader inter-firm transactions affect the vertical scope of emerging IT-enabled extended enterprises. We do so by modeling firms in a three-tier value chain who are each connected to a common electronic market that facilitates direct business transactions across tiers, and that lowers the search costs associated with finding an appropriate trading partner for each of them. The extent to which search costs are reduced depends on the complexity of B2B search, and the nature of the supporting technologies that the electronic market facilitates. Variation in search costs affect firms across the value chain in three key ways: by a change in the transaction costs of interaction between firms; by a change in the contracting costs associated with outsourcing owing to changes in the costs of moral hazard for delegated search, and by a change in the price dispersion of upstream input commodities. We capture each of these effects in a new model that integrates search theory into the principal-agent framework, and establish that the optimal outsourcing contract has a simple "all or nothing" performance-based structure under fairly general assumptions. We then apply this model to contrast the effect that different information technologies have on the relative B2B search costs of different firms in the value chain, contrasting the predicted changes of proportionate, constant and convergent changes in search costs. When integrated with a detailed analysis of the nature of B2B search, these results predicts that when B2B search is information-intensive, electronic markets will facilitate an increase in outsourcing, market-based transactions and a reduction in the vertical scope of extended enterprises. In contrast, when B2B search is primarily communication-intensive, electronic markets will lead to tighter integration and an increase in the vertical scope of the extended enterprise. Our research suggest that the nature of the information technologies and of the business activities supported by an electronic market are crucial determinants of the organizational and industry changes they induce, and our results have important implications for a variety of industries in which both technological and agency issues will influence the eventual success of global IT-facilitated extended enterprise initiatives. 0 We thank

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Adoption of Electronic Commerce by Organizations in India: Strategic and Environmental Imperatives

Tarafdar

Vaidya

2004

E J Info Sys Dev Countries

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In recent years many developing nations have been exposed to significant externa l changes such as economic deregulation and globalization. Evidence suggests that this has resulted in the adoption of EC by organizations in these countries. It is important to understand the strategic and environmental imperatives for EC adoption. Such u nderstanding is required for anticipating necessary changes in EC adoption, to keep in tune with the impending and emerging changes in the environment. It is also needed for formulating business strategies in alignment with the organization's IS strategies and IT capabilities, and for addressing managerial challenges in EC adoption. This paper is based on a study of EC adoption in eighteen companies from eleven industries in India. It is aimed at examining the different factors, related to strategic and environmental imperatives, which lead to the adoption of EC by organizations in developing countries. The results, based on interviews with close to a hundred people in these organizations indicate that there are broadly three conditions under which an organization adopts EC. These are related to the external environment, organizational performance and specific internal management compulsions. Each of these conditions describes a specific aspect of EC adoption and leads to imperatives for changes in processes and products. These imperatives in turn, result in the adoption of EC in different critical organizational processes. This study is one of the first detailed empirical studies on EC adoption in Indian organizations.

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Uses and Consequences of Electronic Markets: An Empirical Investigation in the Aircraft Parts Industry

Cited by 240 publications

References 13 publications

Theoretical Foundations of Empirical Research on Interorganizational Systems: Assessing Past Contributions and Guiding Future Directions

Theoretical Foundations of Empirical Research on Interorganizational Systems: Assessing Past Contributions and Guiding Future Directions

Electronic Markets, Search Costs and Firm Boundaries

Adoption of Electronic Commerce by Organizations in India: Strategic and Environmental Imperatives

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