Work

Impact of Information Technology on Transaction Governance Structures

Year: 2001

Type: article

Abstract: Researchers have always been anxious to analyze and explain the impact of information technology(IT) on transaction governance structures.The idea of Move-to-Market was initially proposed by Malone, Yates, and Benjamin.They claimed that markets are more communication intensive than hierarchies, and markets benefit more from communication cost reductions.Therefore, transaction structure shifts toward market as information technology advances.This paper provides additional theoretical arguments in support of the theory of move-to-market.In addition to Malone's arguments, we propose that move-to-market is due to the following factors: (1) IT reduces coordination cost, (2) IT has high rate of obsolescence and standardization, (3) IT decreases the asset specificity of other capital investments, and (4) IT increases specialization.

Source: Journal of the Association for Information Systems

Authors: Aimao Zhang, C. Ranganathan

Language: English

Topic: Outsourcing and Supply Chain Management

Subfield: Management Information Systems

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Industry, innovation and infrastructure

Open Access status: green

OpenAlex ID: W1581596229

FWCI:

Cites: 24

Cited by:

Related to: 10