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Information Resources Management Association
Advancing the Concepts & Practices of Information Resources Management in Modern Organizations

Business to Business E-Commerce and Inter-Firm Governance

Business to Business E-Commerce and Inter-Firm Governance
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Author(s): Qi Fei (University of Nebraska, Lincoln, USA) and Jim Q. Chen (St. Cloud State University, USA)
Copyright: 2006
Pages: 4
Source title: Emerging Trends and Challenges in Information Technology Management
Source Editor(s): Mehdi Khosrow-Pour, D.B.A. (Information Resources Management Association, USA)
DOI: 10.4018/978-1-59904-019-6.ch010
ISBN13: 9781616921286
EISBN13: 9781466665361


Electronic data interchange (EDI) and Internet based Business to business (B2B) e-commerce technology are two important inter-organization systems (IOS). Many studies have been done about their significant impact on business operations but little attention has been paid to their effect on the inter-firm governance. Inter-firm relationship has been the research focus in business management and information systems field for a long time. From the perspective of marketing, inter-firm governance is the mechanism which eventually determines inter-firm relationships. This study draws the conclusion that information technology has significant impact on inter-firm governance. Thus, understanding of IT impact on inter-firm governance will provide important insight for understanding the evolution of inter-firm relationship in the future. This study focuses on the transformation of inter-firm governance after business organizations adopt EDI and Internet based e-commerce technology. In the next section, a brief literature review on the interfirm governance is conducted. Then, the impact of information technology on inter-firm governance is analyzed. A conceptual model is proposed to show the transformation process. At last, transaction cost theory is adopted to explain the transformation. The article concludes with a summary and future research directions.

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