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    The e-integration dilemma: The linkages between Internet technology application, trading partner relationships and structural change

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    Author
    Power, D; Singh, P
    Date
    2007-11-01
    Source Title
    Journal of Operations Management
    Publisher
    Wiley
    University of Melbourne Author/s
    Power, Damien; Singh, Prakash
    Affiliation
    Management and Marketing
    Metadata
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    Document Type
    Journal Article
    Citations
    Power, D. & Singh, P. (2007). The e-integration dilemma: The linkages between Internet technology application, trading partner relationships and structural change. Journal of Operations Management, 25 (6), pp.1292-1310. https://doi.org/10.1016/j.jom.2007.01.006.
    Access Status
    This item is currently not available from this repository
    URI
    http://hdl.handle.net/11343/27991
    DOI
    10.1016/j.jom.2007.01.006
    Description

    C1 - Refereed Journal Article

    Abstract
    The evidence from an empirical study involving 281 Australian organizations suggests that the availability, open nature, and (comparative) ease of implementation of Internet technologies for integration with trading partners, whilst on the one hand providing the means by which organizations can integrate processes and systems in a cost effective way, can amplify the need for both structural change and closer collaboration with trading partners. The relationships proposed and tested in the model are justified and explained based on a number of theoretical perspectives. These include Transaction Cost Economics, Socio-technical Systems, Resource Dependency, Knowledge Based View, Stakeholder Theory and Organizational Learning. The implications of the findings for Transaction Cost Theory are noteworthy firstly because they support the appropriateness of the inter-organizational governance structure in the context of this study, and secondly because although application of these technologies may reduce information search and related costs, whether this necessarily leads to reduced coordination costs is problematic. The potential benefits from improved coordination may be constrained by the perceived costs, and risks, of transition to new structural forms. The implication for practice is that increased use of Internet technologies creates substantial pressure to invest in organizational change. The attractiveness of investing in technologies that place managers in a position where they need to promote organizational change in order to extract adequate returns creates a significant dilemma. On the one hand Internet technologies enable extensive sharing and integration of data among trading partners, but at the same time they create conditions requiring managers to embrace fundamental organizational change in order to leverage the potential of such integration.
    Keywords
    Business and Management

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