The impact of information systems on organizations and markets
Communications of the ACM
Justifying investments in new information technologies
Journal of Management Information Systems
A proposal for valuing information and instrumental goods
ICIS '99 Proceedings of the 20th international conference on Information Systems
ICIS '00 Proceedings of the twenty first international conference on Information systems
A Case for Using Real Options Pricing Analysis to Evaluate Information Technology Project Investment
Information Systems Research
Real Options and IT Platform Adoption: Implications for Theory and Practice
Information Systems Research
To be or not to B2B: Evaluating managerial choices for e-procurement channel adoption
Information Technology and Management
Valuing information technology infrastructures: a growth options approach
Information Technology and Management
Journal of Management Information Systems
Information Technology and Management
Electronic B2B Marketplaces with Different Ownership Structures
Management Science
The Complementary Effects of E-Markets on Existing Supplier-Buyer Relationships in a Supply Chain
Journal of Management Information Systems
Investments in Information Security: A Real Options Perspective with Bayesian Postaudit
Journal of Management Information Systems
Information Systems Research
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There are two popular forms of business-to-business (B2B) marketplaces: public marketplaces and private channels. We study why firms choose either or both of these sourcing channels. Using a framework of decision making under uncertainty, we explain firms' choice of B2B channels as a hedging strategy and as a method of obtaining greater managerial flexibility for the future. We show that greater uncertainty can lead to higher investment with firms more likely to invest in both public and private channels. We find that the level of information technology (IT) capability and spending is an important factor in firms' decision making. When a firm chooses its level of IT investment simultaneously with the decision about which sourcing channels to use, the firm choosing both channels selects the highest level of IT capability and the firm implementing only one channel selects lower levels of IT capability.