The growing popularity of outsourcing and offshore-partnering activities raises the issue of what strategies are appropriate for firms to successfully manage customer–supplier relationships in the international context. Little has been written about how information technology (IT) systems may impact on international exchange relationships. In the present study, we report on how suppliers use IT as a strategic resource to govern their international exchange relationships with multinational enterprise customers. Taking the supplier's perspective, we propose that two types of IT resources – IT advancement and electronic integration – create value for suppliers with respect to innovativeness and market performance. We argue that this value creation process is mediated by three specific forms of governance: cooperativeness, output monitoring, and behavior monitoring. To test these arguments, primary data, obtained from 240 Taiwanese electronics suppliers, are used for hypothesis testing. The survey results provide evidence that suppliers’ IT resources enable them to work effectively with their international key customers. Importantly, of the three governance mechanisms, cooperativeness has the strongest impact on supplier performance, owing to supplier electronic integration. Post-hoc analysis revealed that cultural distance does not play a role in moderating the relationship between IT resources and governance mechanisms in international exchange.

Enhancing international customer–supplier relationships through IT resources: A study of Taiwanese electronics suppliers

Factors for winning interface format battles: A review and synthesis of the literature

While extant business intelligence systems (BIS) adoption research focused mainly on adoption of BIS in large-sized organizations, our understanding about the adoption determinants and the process within small and medium enterprises (SME) is still limited. The aim of our research is to identify SME-specific determinants of BIS adoption at firm level that will guide the development and testing of a BIS adoption framework in the milieu of SMEs. By leveraging semi-structured interviews involving BIS experts and adopters, and blending them with comprehensive IT/IS adoption literature we identified instrumental determinant candidates for delving deeper into BIS adoption in SMEs.

/pdf/unpacking-business-intelligence-systems-adoption-1l61qqkv33.pdf

Unpacking Business Intelligence Systems Adoption Determinants: An Exploratory Study of Small and Medium Enterprises

In markets that exhibit network effects, the presence of digital conversion technologies provides an alternative mechanism to achieve compatibility. This study examines the impact of conversion technologies on market equilibrium in the context of sequential duopoly competition and proprietary technology standards.

We analyze this question by departing from the extant literature to endogenize the decision to provide a converter and incorporate explicit negotiations between firms concerning the extent of conversion. We argue that these choices better reflect the environment facing firms in digital goods industries and find that these decisions change some of the established results in the literature.

Specifically, we find that unless network effects are very large, the subgame-perfect equilibrium (SPNE) involves firms' agreeing to provide digital converters at a sufficiently low price to all consumers. At this equilibrium, both the entrant and the incumbent are better off because the provision of converters alleviates price competition in the market and leads to both higher product revenues and higher proceeds from the sale of converters. Moreover, under some circumstances, the provision of converters is welfare enhancing.

These findings have important implications for research and practice in the adoption of new digital goods as the introduction of conversion technologies can reduce the social costs of standardization without compromising the benefits of network effects.

/pdf/compatibility-and-proprietary-standards-the-impact-of-4yqoe51kil.pdf

Compatibility and Proprietary Standards: The Impact of Conversion Technologies in IT Markets with Network Effects

Both theoretical and empirical evidence suggest that, in many markets with standards competition, network effects make the strong grow stronger and can “tip” the market toward a single, winner-take-all standard. We hypothesize, however, that low cost digital conversion technologies, which facilitate easy compatibility across competing standards, may reduce the strength of these network effects. We empirically test our hypotheses in the context of the digital flash memory card market. We first test for the presence of network effects in this market and find that network effects, as measured here, are associated with a significant positive price premium for leading flash memory card formats. We then find that the availability of digital converters reduces the price premium of the leading flash card formats and reduces the overall concentration in the flash memory market. Thus, our results suggest that, in the presence of low cost conversion technologies and digital content, the probability of market dominance can be lessened to the point where multiple, otherwise incompatible, standards are viable. Our conclusion that the presence of converters weakens network effects implies that producers of non-dominant digital goods standards benefit from the provision of conversion technology. Our analysis thus aids managers seeking to understand the impact of converters on market outcomes, and contributes to the existing literature on network effects by providing new insights into how conversion technologies can affect pricing strategies in these increasingly important digital settings.

https://papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID2122451_code409699.pdf?abstractid=1021352&type=2

Standards Competition in the Presence of Digital Conversion Technology: An Empirical Analysis of the Flash Memory Card Market

As firms seek to improve coordination through the use of electronic interorganizational systems (IOS), open standards are becoming increasingly important. To better understand the process of standa...

Migration to open-standard interorganizational systems

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Migration to open-standard interorganizational systems