Computer integration: a co-requirement for effective inter-organization computer network implementation

ABSTRACT

Inter-organization computer networks (IONS) provide significant opportunities for improving coordination between firms engaged in mutually dependent activities. This research paper focuses on how IONS affect information processing requirements, and production and transaction costs when they interconnect firms with internally integrated computer systems and when they are used only as substitutes for conventional media. We conclude that significant improvements in inter- organization coordination result when IONS support exchanges between internally integrated firms. However, while IONS reduce production costs, they can simultaneously increase transaction costs including those associated with penetration into another firm's computing resources, and segmentation in the marketplace.

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INDEX TERMS

Primary Classification:
  K. Computing Milieux
  K.4 COMPUTERS AND SOCIETY

Additional Classification:
  B. Hardware
  B.7 INTEGRATED CIRCUITS

  C. Computer Systems Organization
  C.2 COMPUTER-COMMUNICATION NETWORKS
      C.2.0 General
          Subjects: Data communications

  H. Information Systems
  H.1 MODELS AND PRINCIPLES
  H.4 INFORMATION SYSTEMS APPLICATIONS

General Terms:
Design, Human Factors