Strategic Choices in the Development of Interorganizational Information Systems

Vivek Choudhury
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Vivek Choudhury: 226 Mervis Hall, Joseph M. Katz Graduate School of Business, University of Pittsburgh, Pittsburgh, Pennsylvania 15260

Information Systems Research, 1997, vol. 8, issue 1, 1-24

Abstract: This paper discusses two critical strategic choices that a firm must make in developing interorganizational information systems (IOISs)--- what kind(s) of IOIS(s) to develop, and how to develop the IOIS(s). With respect to the kinds of IOISs, it proposes a typology of three different types of IOISs: electronic monopolies, electronic dyads, and multilateral IOISs. With respect to development approach, a firm can develop an IOIS competitively or cooperatively. Based on a case study of the development of IOISs in the aircraft parts industry, two sets of transaction characteristics---demand uncertainty and market variability---were found to influence the choice of IOISs. Two factors---strategic significance of the IOIS, and size and bargaining power of the firm---were found to influence the choice of development approach. The observations from the case study are used to develop a set of propositions about when a firm will choose a particular IOIS and whether a cooperative or a competitive approach will be used.

Keywords: interorganizational information systems; aircraft parts industry; transaction characteristics; cooperation and competition (search for similar items in EconPapers)
Date: 1997
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