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

Authors:
Paul Hart;D. Estrin
Affiliations:
Department of Computer and Information Systems, College of Business and Public Administration, Florida Atlantic University, Boca Raton, Florida;Computer Science, Department University of Southern California, Los Angeles, California
Venue:
CSCW '90 Proceedings of the 1990 ACM conference on Computer-supported cooperative work
Year:
1990

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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.