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Assessing the Value of Interorganizational Systems to Support Business Transactions

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  • Gebauer, Judith
  • Buxmann, Peter

Abstract

In interorganizational settings, the use of information systems (IS) and networks is often not formally evaluated, and decisions are made by “gut feeling” rather than based on rational evidence. Since benefits depend not only on internal contingencies but also on the decisions and loyalty of business partners, issues of trust and the risk of becoming locked in with a disloyal partner become crucial. The Internet and Web-based technologies, by facilitating system development and the deployment of interorganizational systems (lOSt may help change this picture. In times when IT use is becoming more and more important for firms to remain competitive and efficient, system costs and benefits have to be carefully balanced in order to build systems that are perceived as beneficial even in cases where risk aversion makes this difficult. This paper examines applications that support interfirm business transactions, in particular those that involve buying processes. A conceptual model for the evaluation of investments is introduced that takes into account the perspectives of the initiator and the prospective participants. The model is applied to a system developed by the lawrence livermore National laboratory (llNl) to link it with suppliers and support purchasing processes.

Suggested Citation

  • Gebauer, Judith & Buxmann, Peter, 2000. "Assessing the Value of Interorganizational Systems to Support Business Transactions," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 36498, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    • Handle: RePEc:dar:wpaper:36498
    Note: for complete metadata visit http://tubiblio.ulb.tu-darmstadt.de/36498/
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    Cited by:

    1. Kelle, Peter & Akbulut, Asli, 2005. "The role of ERP tools in supply chain information sharing, cooperation, and cost optimization," International Journal of Production Economics, Elsevier, vol. 93(1), pages 41-52, January.
    2. Nelson, Matthew L. & Shaw, Michael J., 2005. "Interorganizational System Standards Diffusion: The Role of Industry-Based Standards Development Organizations," Working Papers 05-0126, University of Illinois at Urbana-Champaign, College of Business.
    3. Gebauer, Judith & Mahoney, Joseph T., 2013. "Joining Supply and Demand Conditions of IT Enabled Change: Toward an Economic Theory of Inter-firm Modulation," Working Papers 13-0100, University of Illinois at Urbana-Champaign, College of Business.

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