Limits to Value in Electronic Commerce-Related IT Investments.

Author List: Chircu, Alina M.; Kauffman, Robert J.;
Journal of Management Information Systems, 2000, Volume 17, Issue 2, Page 59-80.
This paper extends the limits-to-value model of Davern and Kauffman to explore market and process-level factors that impact value flows to firms for their information technology (IT) investments. We characterize IT value in terms of potential value and realized value, and show how each is subject to different effects-- limits to value--that diminish the benefits of the investment. Our typology identifies barriers specific to the valuation process (industry and organizational barriers), and to the conversion process (resource, knowledge and usage barriers). Following the development of our analytical framework from existing economic and organizational theories of IT valuation and technology adoption and diffusion, we analyze a series of case studies of Internet-based travel reservation systems in electronic commerce (EC). These cases provide evidence in support of the usefulness of the framework, and illustrate the extent of the difficulties faced by organizations in making their investments in EC systems pay off.
Keywords: business value; case study; conversion barriers; corporate travel industry; electronic commerce; information technology investments; valuation barriers
Algorithm:

List of Topics

#143 0.255 value business benefits technology based economic creation related intangible cocreation assessing financial improved key economics assess question created create understanding
#84 0.171 electronic markets commerce market new efficiency suppliers internet changes marketplace analysis suggests b2b marketplaces industry examine easy product making physical
#271 0.107 technology investments investment information firm firms profitability value performance impact data higher evidence diversification industry payoff return findings decisions greater
#82 0.076 case study studies paper use research analysis interpretive identify qualitative approach understanding critical development managerial elements exploring points positivist presents
#49 0.066 adoption diffusion technology adopters innovation adopt process information potential innovations influence new characteristics early adopting set compatibility time initial current
#35 0.059 technology organizational information organizations organization new work perspective innovation processes used technological understanding technologies transformation consequences perspectives use administrative economic
#77 0.055 information systems paper use design case important used context provide presented authors concepts order number various underlying implementation framework nature