Strategic choice and inter-organisational information systems

The impact of inter-organisational information systems (IOSs) on governance structures is analyzed. The research question considered is what are the factors and mechanisms of change driving the evolution of different forms of governance structures and how do IOSs affect this process? Based on previous research by the authors and a review of the management and IS literature, an integrated research framework is proposed that is a synthesis of theoretical constructs from marketing, economics and strategy subject disciplines. Data were collected by applying the research framework to a theoretical sample of five focal organisations and their trading partners. The case results reveal a wide variety in construct values. It is shown that organisations are employing the enabling effects of IOSs to develop business relationships in which elements of both market and hierarchy are evident simultaneously. These new forms of competitive behaviour are termed mixed mode business relationships and are significant because they allow organisations to gain the benefits of a hierarchy such as coordinated response to external change and in addition retain an element of market competition to spur innovation and control costs. Finally, a general model of the inter-relationships between IOSs and the constructs asset specificity, market complexity, governance structure and coordination strategy is proposed.<>