Inter-organizational Information Systems Research Articles

Developing a framework to investigate the impact of e‐commerce on the management of internal business processes

AbstractThis paper develops a theoretical framework for use in research investigating the impact of e‐commerce on the management of internal business processes. Managing the business processes that facilitate order fulfilment and delivery of goods and services supplied to customers is the prime concern of operations management. Despite the growing importance of e‐commerce to organizations of all types, e‐operations is a neglected area of study. Yet many of the problems associated with e‐commerce have centred on an inability to ‘deliver the goods’, often literally. Effective and efficient operations management is as important in e‐commerce as it is in traditional business. The framework, developed by integrating literature from the academic traditions of operations management and information systems, identifies three key issues: business process integration (the extent to which business processes for clicks and mortar e‐commerce are integrated with those for bricks and mortar), information systems integration (the extent to which intra‐ and inter‐organizational information systems are capable of communicating and sharing information with each other) and the operating context (types of customers, the e‐commerce business model and organizational factors). The framework is being used in case study‐based research that aims to describe and model current practice in organizations engaged in e‐commerce. The paper describes how the framework was applied in three financial services companies. The framework proved to be a useful basis for the research, enabling key emergent themes to be identified. However, in order to fully explain all of the research findings it was subsequently necessary to modify the framework to take account of the strategic context of each organization. The modified framework will be used as the basis of further case studies being conducted in organizations in other sectors. Copyright © 2002 John Wiley & Sons, Ltd.

Using Interorganizational Information Systems to Support Environmental Management Efforts at ASG

SummaryWe examine use of environmental information systems by ASG AB (hereafter ASG), an international logistics and transport firm headquartered in Stockholm, Sweden, as a case study to illustrate the role of information systems in life‐cycle‐oriented environmental management. This case provides an example of how a firm can use interorganizational information systems (IOISs) to move toward environmentally sustainable business practices. Through the use of IOISs, ASG has been able to improve its environmental performance and that of its suppliers. Further, this improved environmental performance has been a competitive advantage for ASG and enabled it to attract new business. As such, ASG's experiences illustrate how aggressive practices move environmental management beyond compliance and cost control, at which many firms have been successful, to revenue generation. The case also shows how environmentally sustainable business practices can be integrated into a firm's strategy. In addition to illustrating how ASG has used IOISs to improve environmental performance, we compare their use of environmental ISs with the expected evolution of environmental ISs presented in the Shaft and colleagues (1997) framework. Although some of ASG's experiences verify the expected progression of these types of systems, some developments are not as expected. These differences have implications for the framework.

An inter-organizational information system for supply chain management

The deployment of the emerging concepts of information technology, strategic alliances, and business process re-engineering within the intra/inter-organizational context have become a popular prescription in enhancing supply chain management. This paper reviews the theoretical foundations for the study of inter-organizational relationships within a supply chain management context, and analyzes the contingencies of deploying inter-organizational information systems (IOIS). A framework is proposed which deploys IOIS from an IOIS provider's perspective. The framework is discussed from the viewpoint of using a strategic information system within the context of the China to Hong Kong to importing country supply chain.

Lessons learned from three interorganizational health care information systems

The airline, financial, retail, consumer goods and cotton industries are not alone in their increased use of interorganizational information systems (IOSs). Health care organizations are investing and participating in a growing number of IOSs, such as community health information networks (CHINs) and integrated delivery systems (IDS). This paper examines the experiences of three CHIN systems located in the US — Midwest. Multiple data sources, including executive interviews, memoranda, internal documentation and system demonstrations, provided data for this research. The history of each case provides a better understanding of systems implementation and the underlying determinants that emerged as having significant impact. Not only do these findings provide guidelines and learning tools for practitioners, but they also hold implications to the field and its current position on bipolar streams in the literature. Lastly, our findings suggest that large health care infrastructures will continue to be confronted by the presence of the World Wide Web and electronic commerce.

The Benefits of IT-Based Supply Chains-Strategic or Operational?

ABSTRACT Business relationships are being revolutionized by the use of inter-organizational information systems (IOSs) that connect together separate companies' business processes through the application of Information Technology (IT). The physical value chain is now paralleled by the virtual information chain. Detailed case studies from earlier research suggest that there are huge benefits to be gained from concepts such as Electronic Data Interchange (EDI), shared product design databases and shared production scheduling systems. However, there is little empirical evidence of the overall usage and outcomes of IOS implementation. In this survey, IOS benefits are evaluated using marketing derived frameworks. Evidence from 89 United Kingdom (UK)-based organizations, a large proportion of which are trading internationally, suggests that IOSs are becoming pervasive across different business processes and across different types of industry. The analysis reveals that marketing activities are now dominated by the management of the information along the supply chain and that significant benefits can be realized. However, the time-scale for implementing such systems is of the order of 5 to 10 years and there are significant barriers to successful implementation.

Trust, power and interorganizational information systems: the case of the electronic trading community TransLease

Abstract.This paper focuses on Cap Gemini’s electronic commerce system, TransLease. TransLease is an interorganizational information system (IOS), which facilitates electronic commerce between motor vehicle leasing and repair companies. During our investigation, the system was used by approximately 1000 repair agents working for seven of the UK’s leading vehicle leasing and contract hire companies. This system was originally developed by AT&T and acquired by Cap Gemini in July 1998. At the time of acquisition, the system was seen as being of high strategic value, although it was also seen as underperforming. This paper reports the results of an action research project, which formed one element of the process by which Cap Gemini investigated the former problem. In the paper, TransLease is described as a complex electronic community, dependent upon the existence of symbiotic relationships. As such, the problems that the system users and developers experienced can be attributed to factors that impeded the mutual benefit accruing from participation in the system. The efficacy of the terms of exchange and the degree to which participants mutually benefit through electronic interaction is determined by the complex interplay of a number of relational and organizational factors. The research therefore illustrates the importance of the ‘soft’ organizational issues in IOS management and development, and suggests a conceptual model of the factors relevant in this case. At the time of this study, TransLease was still in the early stages of its life cycle, having only been available in the marketplace for approximately 18 months. During this time, through recognizing the complex problems and issues detailed in this paper, Cap Gemini accordingly redressed the way in which the system was managed and maintained. TransLease is now seen as having matured into a highly successful example of an IOS – a view reflected by its position as market leader in the industry. As this paper will show, the key to improving the existing service has been the emphasis Cap Gemini now places on managing the ‘soft’ aspects of the electronic community.

The political economy of information exchange politics and property rights in the development and use of interorganizational information systems

Interorganizational information systems are information systems that cross organizational boundaries. Information managers and system developers often assume that the more integrated these information systems are, the more successful the system will be. Such an assumption is indeed intuitively appealing, and, from a technological standpoint, readily understandable. In practice, development and use of integrated information systems that cross organizational boundaries often result in confusing power struggles, politicking, and sometimes manifest sabotage. Based on economic and political organization theory, this article concludes that data ownership and incentives, rather than integration, are of vital importance for the success of interorganizational information systems.

EClusters: the potential for the emergence of digital enterprise communities enabled by one or more intermediaries in SMEs

This paper investigates the relevance to SMEs of one new business model—the digital enterprise community enabled by one or more intermediaries, termed eClusters. This proposed new type of inter-organizational information system is significant because it has led to the formation of new network forms, rather than supporting existing configurations. The research outcomes include a proposed taxonomy, based on commitment, giving four types: Drifters, Supporters, Players and Teams. This work raises questions on the future of the outsourcing industry, which has to date achieved negligible penetration in SME sectors and highlights the potential for ICT to enable new network forms. Copyright © 2000 John Wiley & Sons, Ltd.

Global Comparisons of Key Issues in IS Management: Extending Initial Selection Procedure and an Empirical Study in Norway

Information systems (IS) departments face many challenges in today's rapidly changing environment. One approach to understanding these challenges is to survey IS managers to elicit what they consider are key issues. Studies of key IS management issues have been conducted for some years in many nations and regions. However, most of these surveys lack a theoretical basis for the selection of key issues. Furthermore, most studies have used a single-round or a multi-round Delphi method. This chapter provides an overview of research approaches to key issues studies combined with key issues results from previous research. The chapter presents methodological issues and choices for a survey on key issues in IS management which was conducted in Norway in 1998. A three step procedure for key issues selection is introduced, and a Q-method analysis is adopted. The chapter presents results from the Q-sort survey and analysis. The highest ranked key issue in Norway, according to the survey, is concerned with improving links between information systems strategy and business strategy. Global comparisons of key issues in information systems management confirm this top ranked issue. Also, the issue of planning information technology projects for competitive advantage is a high ranking issue in Norway and most other countries. Improving interorganizational information systems planning was the third highest ranked issue in Norway, but it is non- existent in other survey lists. This can be partly explained by the lack of theoretical framework when issues were selected in other studies and by the small organizational sizes in Norway.

Information Systems in Manufacturing Networks

:Interorganizational information systems are prime enablers of new collaborative forms of activity among different businesses, but present research shows that they are only used infrequently to support manufacturing networks of small and medium-size manufacturing enterprises that join together to compete through joint learning, resource sharing, technology transfer, marketing, or production. Many smaller businesses lack technical expertise. Comarketing and coproduction networks have different informationsystem support needs from other networks such as resource and learning networks. Network brokers or sponsors can help network members to incorporate technology that facilitates information access and communication in all networks and can provide collaborative support to enable information exchange and shared databases for joint marketing and production efforts.

Adopting a disaster-management-based contingency model to the problem of ad hoc forecasting: toward information technology-based strategies

Ad hoc forecasts are generally unstructured forecasts that are performed infrequently. Unfortunately, there are no widely accepted formulae for performing such tasks. In this paper, the authors draw parallels between the process of ad hoc forecasting and disaster management, using characteristics of disasters to develop analogous dimensions for ad hoc forecasts, Although a given unit within an organization may not have the opportunity to repeat a particular ad hoc forecast, there are certain similarities among ad hoc forecasts performed by different units within an organization. Mapping ad hoc forecasts along the disaster characteristics brings out these similarities and allows one to identify technology-based strategies for improving ad hoc forecasts. Just as disaster planning draws together people from different units of the organization and creates a common knowledge base, they propose the creation of a common repository of ad hoc forecasts that member organizations can draw upon. This allows organizations that find themselves in need of a particular ad hoc forecast to learn from both the disaster management literature and their own experiences. The presence of the Internet and the World Wide Web provide the infrastructure for creating an inter-organizational information system.

A multi-disciplinary framework for the management of interorganizational systems

Interorganizational information systems (IOS) are information technology (IT)-based systems that link multiple organizations. Management of these systems could be significantly more complex than managing IT within individual organizations. We explore the complexities of managing IOS using case studies and propose a multidisciplinary framework that includes collaboration, organization, and technology issues for the design and management of such organizations. Multiple case studies are presented to illustrate the proposed framework. Managerial and research implications are also discussed.

Redesigning Reengineering through Measurement-Driven Inference

An electronic market is an interorganizational information system through which multiple buyers This first decade of business process reengineering (BPR) is blemished by sporadic success, pathological performance, and inefficiency. Reengineering inefficiency is driven in part by cost and cycle time for process redesign, a process itself that requires deep reengineering knowledge and specialized expertise. However, such knowledge and expertise are not addressed by extant, first-generation redesign tools, so these intellectual activities must be performed manually at present, or provided through expensive BPR consulting services. Knowledge-based systems (KBS) address the requirements for knowledge and expertise directly, and they can augment first-generation tools to reduce redesign cost and cycle time, and hence increase reengineering efficiency. This study employs the methods and tools of reengineering recursively, to redesign the process of process redesign itself. Using measurement-driven inference, a second-generation, KBS redesign tool called KOPeR is developed to automate three key intellectual activities required for process redesign -- process measurement, pathology diagnosis, and transformation matching. This KBS tool is used in the laboratory to redesign a commercial process from the reengineering literature and then employed in the field to redesign operational procurement processes in the context of an industrial strength reengineering project. The study finds that KOPeR-supported redesign enables new reengineering efficiencies in terms of direct automation effects and indirect knowledge effects. Results of this investigation highlight new opportunities available to the IS manager -- such as improving the return on investment from BPR, enhancing the capability for knowledge management and organizational memory, and achieving competitive advantage through knowledge integration -- opportunities that do not necessarily require KBS automation to seize. This research also lays a research cornerstone and foundation for development of process redesign theory and investigation of reengineering effectiveness.

Uses and Consequences of Electronic Markets: An Empirical Investigation in the Aircraft Parts Industry

An electronic market is an interorganizational information system through which multiple buyers and sellers interact to accomplish one or more of the following market-making activities: (1) identifying potential trading partners, (2) selecting a specific partner, and (3) executing the transaction. It has been suggested that electronic markets, by lowering search costs, may lead to significantly increased price competition among sellers and hence, lower prices for buyers. Or, by allowing efficient, direct interaction between buyers and sellers, they may eliminate the role of intermediaries. Little evidence exists to support the claims. This paper empirically examines the validity of these arguments in the context of one electronic market: Inventory Locator Service (ILS) in the aircraft parts industry.Specifically, the paper addresses two questions: When do buyers use an electronic market? How do electronic markets affect each of the following: prices, inventory levels, and the role of brokers? The data show that current models do not adequately capture the complexity of electronic markets. For instance, while ILS sometimes helps buyers find a better price, in other cases it can help suppliers extract an extra premium by providing more accurate information on parts availability. ILS has also had little impact on the extent to which brokers are used, although the specific nature of the value added by brokers appears to be changing. Finally, inventory levels in the industry have been unaffected by the use of ILS.The scope of ILS is limited to the identification process only, so caution must be exercised in generalizing the findings to systems that also support selection and execution. However, the data do suggest additional variables that must be considered in understanding the uses and impacts of electronic markets, including the scope of the electronic market.

Interorganizational information system technology and buyer‐seller relationships

Interorganizational information systems (IOS), the computer based communication between buyers and sellers, can improve inventory management and control as well as reduce costs for all participants. However, stable relationships have been found to be disturbed when IOS is implemented. The objective of this study is to refine our understanding of the differences in perceptions and expectations of benefits from developing IOS as well as changes in the relationship structure. Results support previous research that identified gaps in relationship satisfaction between buyers and sellers when IOS technology is implemented.

The Merchant of Prato-Revisited: Toward a Third Rationality of Information Systems

The failure of SPRINTEL, an interorganizational information system in Prato (Italy), raises number of interesting questions with regard to the technical-economic and socio-political perspectives that currently dominate the information systems~information technology literature. These questions underscore the importance of developing additional theoretical perspectives in order to better understand the role of information systems in organizations. This article reflects upon these questions and their theoretical foundations in the context of a case study. The case study describes the implementation, usage, and outcome of an interorganizational information system. An analysis is made of the extent to which the technical-economic and socio-pofitical perspectives are sufficient to explain the failure of this system. The outcome of the analysis shows that these two perspectives are insufficient to provide an explanation. Based on the fiterature from a variety of sources, a third, complementary, perspective is developed. Like the socio-political perspective (Kling 1980), this perspective is also an interactionist perspective. However, instead of focusing on pofitics and conflict as the primary interaction mode, it focuses on collaboration and cooperation as the key to understanding interaction processes. This perspective introduces a third rationatity of information systems in which trust, social capital, and collaborative relationships become the key

An Interview with Giulio Tonin I.S. Manager - DIESEL, Italy

Click to increase image sizeClick to decrease image size Additional informationNotes on contributorsPaola BielliPaola Bielli is professor of Management Information Systems at Bocconi University (Milan -Italy) and at SDA, the business school of Bocconi since 1988. In 1987 she graduated in Business Administration at Bocconi with a thesis on a Comparison of Managerial Control Systems in German and Italian Companies. Her research topics include IT. in Small and Medium-size Enterprises, Networking and Inter-organisational Information Systems, Global Information Systems. She has published several articles in Italian and international publications. Besides, she has co- ordinated international research projects in the European Union and the former Soviet Republics.

Ownership and Investment in Electronic Networks

We employ the theory of incomplete contracts to examine the relationship between ownership and investment in electronic networks such as the Internet and interorganizational information systems. Electronic networks represent an institutional structure that has resulted from the introduction of information technology in industrial and consumer markets. Ownership of electronic networks is important because it affects the level of network-specific investments, which in turn determine the profitability, and in some cases the viability, of these networks. In our analysis we define an electronic network as a set of participants and a portfolio of assets. The salient concept in this perspective is the degree to which network participants are indispensable in making network assets productive. We derive three main results. First, if one or more assets are essential to all network participants, then all the assets should be owned together. Second, participants that are indispensable to an asset essential to all participants should own all network assets. Third and most important, in the absence of an indispensable participant, and as long as the cooperation of at least two participants is necessary to create value, sole ownership is never the best form of ownership for an electronic network. This latter result implies that as the leading network participants become more dispensable, we should see an evolution toward forms of joint ownership.

Global Distribution Systems

A field study of 33 Canadian and Belgian travel agencies has allowed us to identify various factors determining the use and advantages obtained of global distribution systems (GDS) in the tourism industry. These systems include Galileo (13 agencies), Sabre (12), Worldspan (6) and Amadeus (2). Determinants of the behavior and perception of the travel agencies toward their GDS were found to be the organizational context of GDS implementation, the sophistication of the GDS as an inter-organizational information system, and the sophistication of the firm’s own organizational information system.

Inter-organisational information systems: Are organisations in Ireland deriving strategic benefits from EDI?

Given that Electronic Data Interchange (EDI) has the potential for linking and restructuring organisations in a way which no other technology has done in the past, this paper attempts to study the ways in which this technology is harnessed by the business community in Ireland to increase its competitive position and to reduce the adverse effects of its geographic isolation. The general aim was to determine the motivations for, and benefits from, implementing EDI, and to establish a profile of those businesses currently using an EDI system for some aspect of their operations. Northern Ireland faces particular challenges in trading internationally as a result of its peripheral location. This problem, combined with an increasingly “insular/conservative culture”, has had severe implications for the Northern Ireland economy. The paper begins with a brief review of the literature on EDI. This details the most important considerations identified during the research process, including an examination of EDI activity in the UK and the Republic of Ireland. It then presents the research design and methodology for the study followed by an analysis and discussion of the results. It concludes with a summary of the major findings, and a number of recommendations for the future. The present study has served to identify some trends which are currently being used to form the basis of a more detailed investigation of the EDI environment within Northern Ireland.