Results

Found 27 articles

Clear filters

Enterprise Systems and the Likelihood of Horizontal, Vertical, and Conglomerate Mergers and Acquisitions

2022 | Management Information Systems Quarterly | Citations: 3
Authors: Cao, Chengxin; Ray, Gautam; Subramani, Mani; Gupta, Alok

Abstract: This paper examines the relationship between enterprise systems (ES) and the lik ... Expand

Abstract: This paper examines the relationship between enterprise systems (ES) and the likelihood of mergers and acquisitions (M&A). The key argument is that since ES can reduce agency costs associated with internal coordination and the transaction cost of coordinating with external partners, ES may be related to the likelihood of M&A. Using a sample of 3,289 firms headquartered in North America from 2010 to 2018 that made 8,373 M&A deals, the empirical analysis suggests that ES are positively related to horizontal acquisitions and negatively related to conglomerate acquisitions. However, as internal coordination costs increase, ES are becoming associated with more conglomerate M&A, especially when the goal is to introduce new products and enter new markets. Also, in contexts where partners require transaction specific investments, ES are associated with a relative decrease in the number of horizontal and vertical M&A. These findings suggest that ES create options for managers to engage in ownership as well as information-based coordination, depending on the internal and external coordination costs as well as the goals of the organization. Collapse

Semantic filters: transaction cost economics economies of scale

Topics: research and development IT job database system economies of scale IT investment

Methods: Compustat theoretical contribution Poisson regression SDC Platinum instrumental variables estimation

Theories: lemon market theory transaction cost economics agency theory
What Drives the Competition of Cryptocurrency Exchanges? Examining the Role of the Market and Community

2017 | International Conference on Information Systems | Citations: 2
Authors: Janze, Christian; Gvozdevskiy, Ilya

Abstract: This exploratory study investigates drivers of the competition between cryptocur ... Expand

Abstract: This exploratory study investigates drivers of the competition between cryptocurrency exchanges. We specifically examine the impact of the market as well as the community on two distinct types of competition - the competition for trading frequency and the competition for trading quantity. In our empirical analysis, we draw on a comprehensive data sample compiled from three data sources. The data includes 24 Bitcoin-fiat currency pairs traded on 79 cryptocurrency exchanges, 71,516 associated posts extracted from a corpus of 2.13bn Reddit posts and Wikipedia search data. We find that the competition for trading frequency is driven by both the market as well as the community whereas the competition for trading quantity is driven solely by the market. We contribute to theory and practice by providing a first understanding of drivers of the competition of cryptocurrency exchanges. In addition, we introduce a new competition measure that is based on the trading frequency. Collapse

Semantic filters: transaction cost economics economies of scale

Topics: cryptocurrency Reddit Bitcoin Wikipedia user-generated content

Methods: theoretical contribution latent dirichlet allocation computational algorithm feature engineering statistical hypothesis test

Theories: transaction cost economics lemon market theory
Built to Last or Meant to End: Intertemporal Choice in Strategic Alliance Portfolios
PDF
2015 | Organization Science | Citations: 5
Authors: Bakker, Rene M.; Knoben, Joris

Abstract: Asalient but rarely explicitly studied characteristic of interfirm relationships ... Expand

Abstract: Asalient but rarely explicitly studied characteristic of interfirm relationships is that they can intentionally be formed for finite periods of time. What determines firms’ intertemporal choices between different alliance time horizons? Shadow of the future theorists suggest that when an alliance has an explicitly set short-term time frame, there is an increased risk that partners may behave opportunistically. This does not readily explain the high incidence of time-bound alliances being formed. Reconciling insights from the shadow of the future perspective with nascent research on the flexibility of temporary organizations, and shifting the focus from the level of individual transactions to that of strategic alliance portfolios, we argue that firms may be willing to accept a higher risk of opportunism when there are offsetting gains in strategic flexibility in managing their strategic alliance portfolio. Consequently, we hypothesize that environmental factors that increase the need for strategic flexibility—namely, dynamism and complexity in the environment—are likely to increase the relative share of time-bound alliances in strategic alliance portfolios. Our analysis of longitudinal data on the intertemporal alliance choices of a large sample of small and medium-sized enterprises provides support for this argument. Our findings fill an important gap in theory about time horizons in interfirm relationships and temporary organizations and show the importance of separating planned terminations from duration-based performance measures. Collapse

Semantic filters: transaction cost economics economies of scale

Topics: innovation management database system environmental uncertainty economies of scale organizational productivity

Methods: survey longitudinal research data transformation regression analysis method robustness check

Theories: transaction cost economics
Discovery paths: exploring emergence and IT evolutionary design in cross-border M&As. Analysing grupo Santander’s acquisition of abbey (2004–2009)
PDF
2015 | European Journal of Information Systems | Citations: 0
Authors: Busquets, Javier

Abstract: In this paper, we present the notion of discovery paths stemming from our study ... Expand

Abstract: In this paper, we present the notion of discovery paths stemming from our study of the M&A between Grupo Santander (GS) and Abbey (2004–2009), in which the resulting synergies after the merger were 35% better than expected. In fact, GS achieved a unique level of efficiency in 2012 in the banking industry, which we consider a sign of radical novelty. During the M&A, the GS management decided to apply its customer-centric model through the transfer of the information and communication technology (ICT) platform Partenón. This unusual decision led to the endogenisation of critical ICT functions to scale up this model to Abbey. In the paper, we argue that while some steps that lead to synergies can be planned in advance, other essential variations are only learned and discovered during the M&A process itself, thus leading to emergent synergies. In the model presented, a discovery path explains the firm’s evolution by sets of variations in the strategic interaction between the organisation and technology. These variations led to new design principles resulting from problem solving and modularity, which in turn led to (1) economies of scale and scope, (2) hybrid structures combining ICT and organisational knowledge domains that generate efficiency through fast integrations, and (3) organisational morphogenesis – that is, the creation of new organs such as ICT factories – which generates efficiency by avoiding diseconomies of scale by encapsulating the inherent complexity of technology and provides increasing returns. Collapse

Semantic filters: transaction cost economics economies of scale

Topics: enterprise architecture competitive advantage innovation management economies of scale system integration

Methods: case study design theory synthesis qualitative interview design principle

Theories: evolutionary theory transaction cost economics dynamic capabilities theory
The Value of Community Clouds for Collaboration in the Public Sector

2015 | Americas Conference on Information Systems | Citations: 0
Authors: Labes, Stine; Hahn, Christopher

Abstract: The public sector has discovered cloud computing technologies and therefore dema ... Expand

Abstract: The public sector has discovered cloud computing technologies and therefore demands an adequate cloud provisioning model. The community cloud seems to be a good balance between safety and trust as well as efficiency, cost reduction, and competitiveness for public facilities. Following this presumption, we analyzed the network potential for cooperation in the public sector. First, we reviewed the scientific literature around this concept and clarified the term ‘community cloud’. Then, we conducted a study of network theories to derive common values that are addressed in cooperation. We developed a framework that characterizes a network and assesses its specific network value. For evaluation purposes, we applied the framework to community cloud implementations in the public sector and discussed the results regarding the network value. The research findings reveal basic network values for community clouds in the public sector and will serve as analysis and assessment guidelines. Collapse

Semantic filters: transaction cost economics economies of scale

Topics: cloud computing usability social influence economies of scale database system

Methods: literature study design science design artifact testing design guideline

Theories: social network theory transaction cost economics evolutionary theory game theory new institutional economics
Shareholder reaction to firm investments in the capability maturity model: an event study
PDF
2013 | European Journal of Information Systems | Citations: 2
Authors: Filbeck, Greg; Swinarski, Matthew; Zhao, Xin

Abstract: This study investigates the differential effects of successfully completed capab ... Expand

Abstract: This study investigates the differential effects of successfully completed capability maturity model (CMM) appraisals on a firm's short-term and long-term stock performance. Our results indicate a positive share price response on the days surrounding the appraisal date for the stocks of companies obtaining the CMM appraisal. Stocks of firms successfully completing CMM appraisals generally outperform the S&P 500 index over longer-holding periods, although they do not outperform a matched sample. We find support that firms from the information technology industry, firms that are larger, firms of higher CMM maturity levels, and firms completing multiple appraisals are more likely to experience both short-term and long-term benefits from their investing in the CMM. Collapse

Semantic filters: transaction cost economics economies of scale

Topics: financial performance accounting organizational productivity systems development IT investment

Methods: event study longitudinal research cross sectional research parametric test Student's t-test

Theories: transaction cost economics
Systemic Determinants of the Information Systems Outsourcing Decision: A Comparative Study of German and United States Firms

2012 | Journal of the Association for Information Systems | Citations: 25
Authors: Dibbern, Jens; Chin, Wynne W.; Heinzl, Armin

Abstract: The practice of information systems (IS) outsourcing is widely established among ... Expand

Abstract: The practice of information systems (IS) outsourcing is widely established among organizations. Nonetheless, evidence suggests that organizations differ considerably in the extent to which they deploy IS outsourcing. This variation has motivated research into the determinants of the IS outsourcing decision. Most of this research is based on the assumption that a decision on the outsourcing of a particular IS function is made independently of other IS functions. This modular view ignores the systemic nature of the IS function, which posits that IS effectiveness depends on how the various IS functions work together effectively. This study proposes that systemic influences are important criteria in evaluating the outsourcing option. It further proposes that the recognition of systemic influences in outsourcing decisions is culturally sensitive. Specifically, we provide evidence that systemic effects are factored into the IS outsourcing decision differently in more individualist cultures than in collectivist ones. Our results of a survey of United States and German firms indicate that perceived in-house advantages in the systemic impact of an IS function are, indeed, a significant determinant of IS outsourcing in a moderately individualist country (i.e., Germany), whereas insignificant in a strongly individualist country (i.e., the United States). The country differences are even stronger with regard to perceived in-house advantages in the systemic view of IS professionals. In fact, the direction of this impact is reversed in the United States sample. Other IS outsourcing determinants that were included as controls, such as cost efficiency, did not show significant country differences. Collapse

Semantic filters: transaction cost economics economies of scale

Topics: outsourcing decision making IT workforce IT manager cross cultural research

Methods: survey partial least squares regression statistical power analysis structural equation modeling Monte Carlo simulation

Theories: transaction cost economics institutional theory
Configuration of Value Chain Activities: The Effect of Pre-Entry Capabilities, Transaction Hazards, and Industry Evolution on Decisions to Internalize
PDF
2012 | Organization Science | Citations: 0
Authors: Qian, Lihong; Agarwal, Rajshree; Hoetker, Glenn

Abstract: We integrate insights from organizational capabilities, organizational economics ... Expand

Abstract: We integrate insights from organizational capabilities, organizational economics, and industry evolution to examine industry entrants' boundary choices about value chain activities and test hypotheses in 1978–2009 data from a sample of U.S. bioethanol producers. We find support for our predictions that transaction hazards, decomposed as either enduring or transient over the stages of industry evolution, are positively associated with the choice to internalize value chain activities. Pre-entry experience in an activity increases the likelihood of its internalization and reduces the effect of enduring transaction hazards on the internalization choice. Importantly, we also distinguish between firm- and founder-level pre-entry capabilities (that is, the capabilities of firms versus those of founders). Diversifying entrants with firm-level integrative capabilities are more likely to internalize value chain activities than start-ups, and this effect persists over the industry's life cycle. The relationship between pre-entry experience with an activity and the likelihood of internalizing it is also stronger for diversifying entrants. Findings improve understanding of the relationships among capability development, boundary choice, and industry evolution. Collapse

Semantic filters: transaction cost economics economies of scale

Topics: procurement management marketing management systems development asset specificity economies of scale

Methods: robustness check statistical hypothesis test theory development LexisNexis descriptive statistic

Theories: transaction cost economics
Beyond Transaction Cost Economics: Towards an endogenous theory of Information Technology Outsourcing
PDF
2011 | Journal of Strategic Information Systems | Citations: 0
Authors: Lacity, Mary C.; Willcocks, Leslie P.; Khan, Shaji

Abstract: In our review, we coded 73 empirical findings from 31 journal articles that appl ... Expand

Abstract: In our review, we coded 73 empirical findings from 31 journal articles that applied Transaction Cost Economics (TCE) to study Information Technology Outsourcing (ITO). As Karimi-Alaghehband et al. (2011) note correctly, the empirical results of TCE tests in the context of ITO are mixed. We found that only 49% of the empirical ITO findings supported TCE logic. We found only slightly better support for TCE when it is used as a normative theory (54%) than when it is used as a predictive theory (47%). The main difference between Karimi-Alaghehband et al.’s (2011) contribution and our contribution to the debate focuses upon what to do next. Karimi-Alaghehband et al. (2011) argue that ITO researchers need to apply TCE more faithfully. We argue that we are asking too much of TCE—the ITO phenomenon is more complex than can be accommodated by TCE. We argue that ITO research has matured to the point that we should be building our own endogenous ITO theory. We offer observations and insights on what such a theory might entail. In moving ITO research forward, we first critique TCE assumptions and provide alternative assumptions that seem to fit ITO observations well. We draw on our review of 741 ITO empirical findings (Lacity et al., 2010) to provide a detailed theoretical framework to advance further study that suggests the most promising constructs to use in an endogenous ITO theory. Collapse

Semantic filters: transaction cost economics economies of scale

Topics: outsourcing IS sourcing asset specificity IT investment economies of scale

Methods: literature sample case study theory development mixed method

Theories: transaction cost economics theory of bounded rationality agency theory
Impacts of internal and interorganizational information systems on the outsourcing of manufacturing
PDF
2010 | Journal of Strategic Information Systems | Citations: 0
Authors: Dedrick, Jason; Kraemer, Kenneth L.

Abstract: Drawing on transaction cost economics, this paper looks at the relationship of I ... Expand

Abstract: Drawing on transaction cost economics, this paper looks at the relationship of IT use to the outsourcing of manufacturing using survey data from US manufacturers. We find that greater use of interorganizational systems (IOS) is associated with greater outsourcing, but we do not find any main effects between internal IT and outsourcing. A negative interaction effect is found between measures of internal IT and IOS, suggesting that the two may be substitutes rather than complements. This distinction between internal IT and IOS, and the relationship of the two, offers scholars a more nuanced understanding of the nature and impacts of IT. It provides managers insight into how different types of IT can support different sourcing options. Collapse

Semantic filters: transaction cost economics economies of scale

Topics: outsourcing information system use internet technology asset specificity IT investment

Methods: qualitative interview survey statistical hypothesis test literature study Compustat

Theories: transaction cost economics

Page 1 of 3 Next

AIS11

Journals

Conferences

Semantic Filter

Found 27 articles

Enterprise Systems and the Likelihood of Horizontal, Vertical, and Conglomerate Mergers and Acquisitions

What Drives the Competition of Cryptocurrency Exchanges? Examining the Role of the Market and Community

Built to Last or Meant to End: Intertemporal Choice in Strategic Alliance Portfolios

Discovery paths: exploring emergence and IT evolutionary design in cross-border M&amp;As. Analysing grupo Santander’s acquisition of abbey (2004–2009)

The Value of Community Clouds for Collaboration in the Public Sector

Shareholder reaction to firm investments in the capability maturity model: an event study

Systemic Determinants of the Information Systems Outsourcing Decision: A Comparative Study of German and United States Firms

Configuration of Value Chain Activities: The Effect of Pre-Entry Capabilities, Transaction Hazards, and Industry Evolution on Decisions to Internalize

Beyond Transaction Cost Economics: Towards an endogenous theory of Information Technology Outsourcing

Impacts of internal and interorganizational information systems on the outsourcing of manufacturing

Discovery paths: exploring emergence and IT evolutionary design in cross-border M&As. Analysing grupo Santander’s acquisition of abbey (2004–2009)