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The Multidimensional Business Value of Information Systems Interoperability
Abstract
The creation of complete scientific foundations in the IS interoperability domain necessitates not only the development of mature and widely applicable interoperability architectures, methods, and standards, but also the systematic investigation of the business value they generate. This chapter initially analyses the theoretical foundations of the multi-dimensional business value of IS interoperability and then reviews the quite limited empirical literature on it. Next, it presents an empirical study of the business value generated by the adoption of three main types of IS interoperability standards: industry-specific, proprietary, and XML-horizontal ones. It is based on a large dataset from 14065 European firms (from 25 countries and 10 sectors) collected through the e-Business Watch Survey of the European Commission. It is concluded that all three types of IS interoperability standards increase considerably the positive impact of firm's ICT infrastructure on two important performance dimensions: business processes performance and innovation. However, the effects of these three types of standards differ significantly: the adoption of industry-specific IS interoperability standards has the highest positive impacts, while proprietary and XML-horizontal ones have similar lower impacts. Furthermore, it is concluded that the industry-specific and the proprietary interoperability standards also have positive impacts even at the level of firm's financial performance.
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