A comparison of structure and strategy in electronic commerce

Abstract

The study of interorganizational systems (IOSs) has been an important area of interest in information systems research. Proponents of``transaction cost'' economic theory predict that IOSs will tend towards a market-driven orientation over time. Other researchers, however, suggest that there is a reverse trend occurring towards more hierarchical systems (fewer and closer relationships between buyers and sellers). This study examines the theoretical and strategic perspectives that tend to promote one form of network relationship over the other. An exploratory qualitative study of both a market (Amazon.com's Internet book sales system) and a hierarchical (the Wallace Information Network system) network structure supports the development of a framework to guide future research and strategy.

The Role of Small Business Strategic Alliances in the Adoption of E-Commerce in Small/Medium Enterprises (SMEs)

“…Studies by Marchewka & Towell (2000) found that technical knowledge is often shared in small business strategic alliances. Datta (1988) and Tikkanen (1998) found that there was a significant improvement in internal efficiency though membership of a small business strategic alliance, while Jorde & Teece (1989) suggested that membership of a small business strategic alliance reduced the financial burdens of its members.…”

“…A number of studies (Achrol & Kotler 1999, Schindehutte & Morris 2001 suggested that market penetration might be enhanced through membership of a small business strategic alliance, while Marchewka & Towell (2000) found that dissemination of technical know how through membership of a small business strategic alliance gave 'an edge' over stand alone SMEs.…”

“…A number of studies (Marchewka & Towell 2000, Achrol & Kotler 1999, Tikkanen 1998 suggest membership of a small business strategic alliance has been shown to lead to improvement in internal efficiency, technical expertise, marketing knowledge and a reduction in financial burdens. The results in Table 4.12 shows that there are no significant differences in the attribution of these benefits to E-commerce adoption between members of a small business strategic alliance and non-members.…”

“…Much of this research has been prompted by the realisation that old hierarchical forms of company organisation produced relationships which are too tightly coupled (Marchewka & Towell 2000), and do not fit an often turbulent marketplace (Overby & Min 2000, Tikkanen 1998). Schindehutte & Morris (2001) state that organisations, particularly SMEs, survive or fail as a function of their adaptability to the marketplace.…”

“…These include the sharing of financial risk (Jorde & Teece 1989), technical knowledge (Marchewka & Towell 2000), market penetration (Achrol & Kotler 1999) and internal efficiency (Datta 1988).…”