The Role of IT in the Formation of a Company's Offering - A Framework for Empirical Analysis
Year: 2004
Type: article
Abstract: In this study, we explore the role of information technology in the seller’s decision to formulate an offering. On the basis of a review of existing studies, we identify three dimensions characterizing the nature of a company’s offering as a part of a comprehensive business model. We analyze offerings on the continuum from product-oriented to service-oriented offerings. The established dimensions are: degree of standardization, timing of costs and price quotation principle. We identify three types of factors (to be tested empirically) affecting the seller’s decision to formulate an offering. These factors are: (1) the use of IT (the degree of integration to electronic business between the buyer and supplier organizations), (2) factors endogenous to the company’s offering, (i.e., scope of contract and type of installations to maintain), and (3) factors exogenous to the company’s offering, (i.e., factors relating to technical unpredictability and core competencies).
Authors: Esko Penttinen, Risto Rajala
Language: English
Subfield: Management Information Systems
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W1542302686