Abstract

Electronic links are becoming increasingly important in the inter-and intra-firm spheres. The present article develops an analytical frame for defining this evolution. The growing use of electronic interconnections can be considered as the combination of three forces : the effect of electronic communication, the effect of electronic brokerage and the effect of electronic integration. The nature of these interconnections - electronic hierarchy or electronic market - depends on factors such as the simplicity of product specifications and the degree of product specificity with regard to customers. By reducing co-ordination costs, information technologies lead to global change towards a more widespread use of markets, to the detriment of hierarchies, for the co-ordination of economic activities. By applying this analytical frame, it is possible to forecast some of the changes likely to attend the intensified use of information technologies.

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