Research Fellow, Fujitsu Centre for Management Information Technology in Organisations, Australian Graduate School of Management, University of New South Wales
A key issue facing information technology (IT) researchers and practitioners has been the difficulty in realizing strategic payoff from IT investment. This study, drawn on sociological theories of embeddedness, addresses this key issue, with particular attention to the perspective of EDI network initiator. Cross-case analysis is conducted comparing three initiators of sophisticated EDI networks, who realized different levels of strategic payoffs. Results reveal that the achievement of strategic payoffs is a function of EDI embeddedness, which is defined as how central or peripheral a specific EDI network is to managing interfirm interdependence. In a model of EDI initiator strategic payoff, the authors argue that EDI embeddedness, which is influenced by existing interfirm relationship, moderates the impact of adopter EDI use on initiator strategic payoff derived from the EDI investment. Specifically, while high embeddedness motivates adopter strategic use, low embeddedness deters such use. The model is validated against three reported cases in the literature.
This paper explores the relationship between IOS-enabled business process change and business outcomes. A generic framework for analyzing IT-enabled business process change is applied to a case study analysis of Japan Airlines (JAL). Drawing on a resource-based view of the firm, we investigate the ways in which lOS not only contributed to JAL's improved competitiveness but also enabled it more fully to leverage its strategic value chain as an engine of growth and a new source of competitive advantage. Our focus is on JAL's strategic use of the AXESS Computer Reservation System and Electronic Data Interchange, developed with a clear strategic intention to support JAL's emerging strategies on customer service, sales, value chain logistics coordination, and cost reduction. JAL's collaboration with the lOS-transformed virtual value chain firms significantly contributed to JAL's business growth and competitiveness. JAL's time-based competitiveness has been improved through its lOS-enabled interfirm joint product innovation cycle time reduction.