Abstract This article provides an analysis of product variety and scope economies in the microcomputer software industry by using detailed firm‐level product‐level information on firms' bundling functionalities over application categories computing platforms. We find that management through way different are integrated products platforms which these offered can be as important significance at more aggregated firm level. Specifically, we there is little evidence benefits from production, but...

ABSTRACT Drawing on the resource‐based view, we propose a configurational perspective of how information technology (IT) assets and capabilities affect firm performance. Our premise is that IT managerial are components in organizational design, as such, their impact can only be understood by taking into consideration interactions between those other non‐IT components. We develop test model assesses explicit tacit resources examining with two (open communication business work practices)....

Despite utilizing technical prevention methods and enacting copyright protection legislation, digital piracy has remained a persistent problem. We examine policy remedies to whereby the policymaker balance its budget between fines on detected pirates, subsidies for legal purchases, restitution firm. In our model, users choose whether subscribe, copy, or not use good, firm decides subscription fee quality, determines subsidies, fines, restitution. find that firm’s is always increasing in...

Many studies measure the value of information technology (IT) by focusing on how much is added rather than mechanisms that drive addition. We argue from IT arises not only directly through changes in factor input mix but also indirectly IT-enabled augmentation non-IT inputs and underlying production technology. develop an augmented form Cobb-Douglas function to separate different productivity-enhancing effects IT. Using industry-level data manufacturing sector, we find evidence both direct...

We employ the theory of incomplete contracts to examine relationship between ownership and investment in electronic networks such as Internet interorganizational information systems. Electronic represent an institutional structure that has resulted from introduction technology industrial consumer markets. Ownership is important because it affects level network-specific investments, which turn determine profitability, some cases viability, these networks. In our analysis we define network a...

We study the impact of information technology (IT) on profitability individual organization designs and relative different designs. develop models where design is defined by location investment decision authority. consider global local when there an asymmetry between a central authority decentralized nodes—decentralized nodes make better decisions because their knowledge. define three separate designs: hierarchy all investments are made authority, market nodes, mixed mode nodes. Because...

We model and estimate the effects to downstream productivity from information technology (IT) investments made upstream. Specifically, we examine how an industry’s is affected by IT capital stock of its suppliers. These supplier-driven spillovers occur because, due competition in supplying industry, quality benefits suppliers’ can pass downstream. If output deflators industries (consequently intermediate input deflator using industries) do not capture improvement IT, then mismeasured or...

This study extends existing information technology (IT) productivity research by evaluating the contributions of spending in IT outsourcing using a production function framework and an economywide panel data set from 60 industries United States over period 1998 to 2006. Our results demonstrate that has made positive economically meaningful contribution industry output labor productivity. It not only helped produce more output, but it also their productive. Moreover, our analysis split...

Recent discussions of management practices among successful high-technology companies suggest that one key strategy for success is to “eat your own lunch before someone else does.” The implication in intensely competitive, or hypercompetitive, markets, firms with a leading position should aggressively cannibalize their current advantages next-generation competitors step steal the market. Given pace technological and other types change, such often requires creating while are still...

Many studies measure the value of information technology (IT) by focusing on how much is added rather than mechanisms that drive addition. We argue from IT arises not only directly through changes in factor input mix but also indirectly IT-enabled augmentation non-IT inputs and underlying production technology. develop an augmented form Cobb- Douglas function to separate different productivity-enhancing effects IT. Using industry-level data manufacturing sector, we find evidence both direct...

This study evaluates the extent to which added value customers from a supplier's application of information technology (IT) is manifested through premium prices traded good. We demonstrate that IT can add an otherwise undifferentiated good and how these benefits accrue adoption IT. Analyzing case in homogeneous commodity, commercial fueling, our data shows critical impacts are convenience control -- is, provides improved access fuel reduces problems delegating purchasing authority for...

We develop a model based on the theory of incomplete contracts for how ownership structure interorganizational systems (IOS) can affect information exploitation and technology adoption. Our yields several propositions that suggest appropriate strategic actions firm may take when there is potential IOS adopters to question whether adopting will be value-maximizing. analyze illustrate related thinking in real-world context involving financial risk management IOS. present case study spin-off...

We examine whether cooperative planning and uncertainty affect the magnitude of rework in concurrent engineering projects with upstream downstream operations, explore impact such on project delays. Using survey data from a sample 120 business process (BP) redesign related information technology (IT) development healthcare telecommunications, our results indicate that is mediated mitigated by through upstream/downstream strategy coupling cross-functional involvement. In addition, to lack firm...

We examine how one industry's productivity is affected by the IT capital of its customers and this effect depends on industries' relative concentration. These customer-driven spillovers result from customers' investments in various information systems that reduce transaction costs through sharing coordination lead to more efficient production logistics upstream. The magnitude industry concentration because concentrated industries those their suppliers are better able retain benefits...

Consumer ratings play a decisive role in purchases by online shoppers. Although the effects of average and number consumer on future product pricing demand have been studied with some conclusive results, variance these are less well understood. We develop model where we decompose into two sources: taste differences about search experience attributes durable good, quality among instances this good form failure. find that (i) optimal price increases decreases caused differences, (ii) decrease...

We study franchise arrangements that allow franchisees with exclusive territories to own their customers. This permits benefit from positive externalities in the network through interfranchise transfers based on purchases by customers at other franchises network. Using structure of a single franchisor and many franchisees, we show that, general, between incentives for franchisee investment expansion customer base are critical both size benefits derived Specifically, find when individual make...

Although consumer profiling advocates tout benefits from personalization, advocacy groups oppose in online markets because of concerns about privacy and price discrimination. Policies such as opt-out or opt-in that provide consumers th

We consider the role of personalized pricing (PP) on product differentiation when PP is costly to implement. Using a stylized yet commonly used formulation, we find that firms decide positioning before deciding implementation, implementation cost affects not only amount choose in their positioning, firm profits, consumer surplus, and social welfare, but also whether implement PP. When low, cannot help engage direct price competition. Moreover, implementing reduce differentiation, further...

Unprecedented changes in the economics of interaction, mainly as a result advances information and telecommunication technologies such Internet, are causing shift toward more networked forms organizations horizontal alliances—that is, alliances among firms similar businesses that have positive externalities between them. Because success depends crucially on aligning individual alliance-member incentives with those alliance whole, it is important to find coordination mechanisms achieve this...

This paper demonstrates that globalization, taking the form of a higher import component consumption and larger export GDP, is cause apparent breakdown in relationship between excess demand inflation. Within parsimonious empirical framework, we show increasing openness US economy all needed to re-establish inflation capacity utilization. We also international trade has significant separate influence on inflation, important for identifying Phillips curve unemployment