Codifiability, Relationship-Specific Information Technology Investment, and Optimal Contracting.

Author List: LEVI, MOTI; KLEINDORFER, PAUL R.; Wu, D. J.;
Journal of Management Information Systems, 2003, Volume 20, Issue 2, Page 77-98.
The past few years have seen an explosion in the number of e-market-places, including a variety of electronic exchanges in the B2B arena, but many of these have also collapsed (e.g., Chemdex/Ventro). The question addressed in this paper is what are the underlying factors that affect which transactions are likely to be supportable by B2B exchanges. In particular, we identify and study three factors: supplier management, idiosyncratic investments in information systems, and codifiability (i.e., digitalizability) of product and order-fulfillment specifications underlying transactions. We show that transaction codifiability plays a fundamental role in influencing the nature of sustainable contracting and IT investments in e-markets. Hypotheses are derived from an analytical model of codifiability in e-marketplaces; these hypotheses are supported by several case studies by the authors and others on the key success factors underlying B2B exchanges.
Keywords: B2B exchanges; codifiability; Electronic Marketplaces; SUPPLIER MANAGEMENT
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List of Topics

#101 0.298 edi electronic data interchange b2b exchange exchanges interorganizational partners adoption transaction trading supplier factors business suppliers impact network commerce efficiency
#77 0.137 information systems paper use design case important used context provide presented authors concepts order number various underlying implementation framework nature
#198 0.129 factors success information critical management implementation study factor successful systems support quality variables related results key model csf importance determinants
#271 0.085 technology investments investment information firm firms profitability value performance impact data higher evidence diversification industry payoff return findings decisions greater
#21 0.060 research information systems science field discipline researchers principles practice core methods area reference relevance conclude set focus propose perspective inquiry
#70 0.058 contract contracts incentives incentive outsourcing hazard moral contracting agency contractual asymmetry incomplete set cost client parties examine effort structures double