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Business to Business E-Commerce and Inter-Firm Governance
Abstract
Electronic data interchange (EDI) and Internet based Business to business (B2B) e-commerce technology are two important inter-organization systems (IOS). Many studies have been done about their significant impact on business operations but little attention has been paid to their effect on the inter-firm governance. Inter-firm relationship has been the research focus in business management and information systems field for a long time. From the perspective of marketing, inter-firm governance is the mechanism which eventually determines inter-firm relationships. This study draws the conclusion that information technology has significant impact on inter-firm governance. Thus, understanding of IT impact on inter-firm governance will provide important insight for understanding the evolution of inter-firm relationship in the future. This study focuses on the transformation of inter-firm governance after business organizations adopt EDI and Internet based e-commerce technology. In the next section, a brief literature review on the interfirm governance is conducted. Then, the impact of information technology on inter-firm governance is analyzed. A conceptual model is proposed to show the transformation process. At last, transaction cost theory is adopted to explain the transformation. The article concludes with a summary and future research directions.
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