An internet-Enabled Move to the Market in Logistics

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dc.contributor.authorGong, Fengmei
dc.contributor.authorNault, Barrie R.
dc.contributor.authorRahman, Mohammad Saifur
dc.date.accessioned2020-01-24T19:26:27Z
dc.date.available2020-01-24T19:26:27Z
dc.date.issued2016-01-21
dc.description.abstractLogistics outsourcing has increased with the commercialization of the Internet, implying a reduction in the corresponding transaction costs. The Internet – with its universal connectivity and open standards – radically enhanced information technology (IT) capabilities, and we hypothesize this has reduced external transaction costs relatively more than internal governance costs. Using transaction cost theory as a lens, we examine whether the commercialization of the Internet coincided with a move to the market in logistics – one of the most connected industries in the economy. We estimate the relationship between IT and outsourced logistics in a production function based on two datasets from 1987 to 2008. We find that the effects of IT on outsourced logistics have changed in the post-Internet era. After the commercialization of the Internet, an industry’s own IT investment and outsourced logistics became complements whereas they were not before. It suggests that because of the unique characteristics of the Internet as an enabler, IT reduced external transaction costs relatively more than internal governance costs. Consequently, industries favored the market form of the provision of logistics. We also find similar impacts of customers’ IT investments on a focal industry’s outsourced logistics. Previous studies argued that IT led to the shift from hierarchies to markets, or provided indirect evidence through measures of firm size or integration. Using a production theory model our study provides systematic empirical evidence to support that the Internet enabled a move to the market in the provision of logistics.en_US
dc.identifier.citationGong, F., Nault, B. R., & Rahman, M. S. (2016). An internet-Enabled Move to the Market in Logistics. "Information Systems Research". 1-33.en_US
dc.identifier.doihttp://dx.doi.org/10.11575/PRISM/37503
dc.identifier.urihttp://hdl.handle.net/1880/111555
dc.language.isoengen_US
dc.publisher.facultyHaskayne School of Businessen_US
dc.publisher.institutionUniversity of Calgaryen_US
dc.rightsUnless otherwise indicated, this material is protected by copyright and has been made available with authorization from the copyright owner. You may use this material in any way that is permitted by the Copyright Act or through licensing that has been assigned to the document. For uses that are not allowable under copyright legislation or licensing, you are required to seek permission.en_US
dc.subjectinformation technologyen_US
dc.subjectorganizational boundariesen_US
dc.subjecthierarchies and marketsen_US
dc.subjectlogistics outsourcingen_US
dc.subjectIT spilloversen_US
dc.subjectproduction function frameworken_US
dc.subjectinput-output tablesen_US
dc.titleAn internet-Enabled Move to the Market in Logisticsen_US
dc.typejournal articleen_US
dc.typeacceptedVersionen_US
dc.typejournal articleen_US
dc.typeacceptedVersionen_US
ucalgary.item.requestcopytrueen_US
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