Interorganizational Information Systems in Industrial Markets
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AbstractThe impact of Interorganizational Information Systems (IOS) on industrial markets is complex because of multiple individual effects. We separate the impact into three effects: value added to the marketed good, buyer IOS adoption costs, and less volume sensitive supplier costs. We conclude the first and last of these effects explain marketed good premiums and discounts found in practice. The presence of buyer adoption costs also reveals why successful IOS always involves additional effort from suppliers. Because preemption is at the heart of IOS launch decisions, IOS introductions are found to occur early, and must be followed up by improved versions.
A version of this paper was accepted for publication in [Nault, B.R. and A.S. Dexter,"Interorganizational Information Systems in Industrial Markets," Chapter 14 in Strategic Information Technology Management: Perspectives on Organizational Growth and Competitive Advantage, R. Banker et. al eds., Idea Group Publishing Inc. (1992) 297-316.] This version is a pre print version of the published Chapter.