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Strategic Choices in the Development of Interorganizational Information Systems

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  • Vivek Choudhury

    (226 Mervis Hall, Joseph M. Katz Graduate School of Business, University of Pittsburgh, Pittsburgh, Pennsylvania 15260)

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.

Suggested Citation

  • Vivek Choudhury, 1997. "Strategic Choices in the Development of Interorganizational Information Systems," Information Systems Research, INFORMS, vol. 8(1), pages 1-24, March.
    • Handle: RePEc:inm:orisre:v:8:y:1997:i:1:p:1-24
    DOI: 10.1287/isre.8.1.1
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    Cited by:

    1. Yuliang Yao & Martin Dresner & Jonathan Palmer, 2009. "Private Network EDI vs. Internet Electronic Markets: A Direct Comparison of Fulfillment Performance," Management Science, INFORMS, vol. 55(5), pages 843-852, May.
    2. Ibrahim, M.K.M. & Ribbers, P.M.A. & Bettonvil, B.W.M., 2007. "Human Knowledge Resources and Interorganizational Systems," ERIM Report Series Research in Management ERS-2007-046-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    3. Srinivasan, Mahesh & Srivastava, Prashant & Iyer, Karthik N.S., 2020. "Response strategy to environment context factors using a lean and agile approach: Implications for firm performance," European Management Journal, Elsevier, vol. 38(6), pages 900-913.
    4. Kim, Daekwan & Shin, Geon-Cheol & Jean, Ruey-Jer “Bryan” & Tamer Cavusgil, S. & Chen, Charles, 2023. "Degree of involvement in supply chain system development and relational performance: A potential dark side in supply chain relationships," Journal of Business Research, Elsevier, vol. 154(C).
    5. Daning Hu & Sherry X. Sun & J. Leon Zhao & Xinlei Zhao, 2011. "Strategic choices of inter-organizational information systems: A network perspective," Information Systems Frontiers, Springer, vol. 13(5), pages 681-692, November.
    6. Büttgen, Marion & al.,, 2021. "Blockchain in Service Management and Service Research - Developing a Research Agenda and Managerial Implications," SMR - Journal of Service Management Research, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 5(2), pages 71-102.
    7. Minu Ipe & T. S. Raghu & Ajay Vinze, 2010. "Information intermediaries for emergency preparedness and response: A case study from public health," Information Systems Frontiers, Springer, vol. 12(1), pages 67-79, March.
    8. Nelson, Matthew L. & Shaw, Michael J., 2005. "Interorganizational System Standards Diffusion: The Role of Industry-Based Standards Development Organizations," Working Papers 05-0126, University of Illinois at Urbana-Champaign, College of Business.
    9. Nelson Granados & Alok Gupta & Robert J. Kauffman, 2010. "Research Commentary---Information Transparency in Business-to-Consumer Markets: Concepts, Framework, and Research Agenda," Information Systems Research, INFORMS, vol. 21(2), pages 207-226, June.
    10. Dipanjan Chatterjee & T. Ravichandran, 2013. "Governance of Interorganizational Information Systems: A Resource Dependence Perspective," Information Systems Research, INFORMS, vol. 24(2), pages 261-278, June.
    11. Maggie Chuoyan Dong & Yulin Fang & Detmar W. Straub, 2017. "The Impact of Institutional Distance on the Joint Performance of Collaborating Firms: The Role of Adaptive Interorganizational Systems," Information Systems Research, INFORMS, vol. 28(2), pages 309-331, June.
    12. Byungjoon Yoo & Vidyanand Choudhary & Tridas Mukhopadhyay, 2007. "Electronic B2B Marketplaces with Different Ownership Structures," Management Science, INFORMS, vol. 53(6), pages 952-961, June.
    13. Yang Liu & Moses Olabhele Esangbedo & Sijun Bai, 2019. "Adaptability of Inter-Organizational Information Systems Based on Organizational Identity: Some Factors of Partnership for the Goals," Sustainability, MDPI, vol. 11(5), pages 1-20, March.
    14. Nagy, A., 2009. "Adoption of interorganizational information systems : The adoption position model," Other publications TiSEM af471297-bf03-43bf-88c1-4, Tilburg University, School of Economics and Management.
    15. Roman Lukyanenko & Jeffrey Parsons & Yolanda F. Wiersma, 2014. "The IQ of the Crowd: Understanding and Improving Information Quality in Structured User-Generated Content," Information Systems Research, INFORMS, vol. 25(4), pages 669-689, December.
    16. Gautam Ray & Dazhong Wu & Prabhudev Konana, 2009. "Competitive Environment and the Relationship Between IT and Vertical Integration," Information Systems Research, INFORMS, vol. 20(4), pages 585-603, December.

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