Information Technology and Industrial Cooperation: The Changing Economics of Coordination and Ownership.

Author List: Clemons, Eric K.; Row, Michael C.;
Journal of Management Information Systems, 1992, Volume 9, Issue 2, Page 9/28/2017.
Cooperation is becoming increasingly important in the modern business environment. The resulting emergence of new forms of organizational relationships is challenging managers to understand the fundamental dynamics of cooperation in order to evaluate and restructure their industrial relationships. This paper applies transactions cost economics toward understanding cooperative relationships. Cooperation is viewed as an effort to increase resource utilization and value through higher explicit coordination of economic activities. However, increasing explicit coordination can create transaction risks: exposure to opportunistic behavior by the other party. Transaction risk limits the level of coordination that is achievable. Information technology can reduce the costs of coordination while also reducing the transaction risks associated with increased coordination. These dual effects suggest a move toward tightly coupled, cooperative relationships.
Keywords: electronic markets; intercorporate coordination; interorganizational information systems; strategic information systems.
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#225 0.157 information environment provide analysis paper overall better relationships outcomes increasingly useful valuable available increasing greater regarding levels decisions viewed relative
#151 0.153 costs cost switching reduce transaction increase benefits time economic production transactions savings reduction impact services reduced affect expected optimal associated
#256 0.130 coordination mechanisms work contingencies boundaries temporal coordinating vertical associated activities different coordinate suggests dispersed coordinated horizontal relative demand spatial hours
#25 0.093 relationships relationship relational information interfirm level exchange relations perspective model paper interpersonal expertise theory study effects literature role social identify
#117 0.083 standards interorganizational ios standardization standard systems compatibility effects cooperation firms industry benefits open interoperability key heterogeneous vertical propose vendors collective
#143 0.061 value business benefits technology based economic creation related intangible cocreation assessing financial improved key economics assess question created create understanding
#277 0.060 structure organization structures organizational centralized decentralized study organizations forms decentralization processing communication sharing cbis activities appropriate provide identify organizing communications
#264 0.055 risk risks management associated managing financial appropriate losses expected future literature reduce loss approach alternative mitigate failures failure cause mitigation
#54 0.051 approach conditions organizational actions emergence dynamics traditional theoretical emergent consequences developments case suggest make organization point outcomes recent trajectory claims