IOS Assimilation Strategies: an Empirical Appraisal
24 Pages Posted: 15 Oct 2008
Date Written: 1995
Abstract
Interorganizational information systems (IOS) are increasingly relied on to facilitate theelectronic exchange of data among organizations. Though substantive progress by theresearch community toward understanding IOS technology has been made, one unattendedissue is understanding more fully the efficacy of alternative management strategies forassimilating IOS into organizational processes. Referred to here as IOS assimilationstrategies, these strategies may offer to management useful alternatives for planning for andproceeding with IOS implementation.Conceptually based on Keen's (1991) notions of "reach" and "range" regarding organizations'computing infrastructure, two IOS Assimilation Strategies are tested for their comparativeeffects on three efficiency and six effectiveness measures. The empirical results, based on datafrom forty-eight organizations of the Group Insurance industry and the nonparametricFriedman test for significance testing, indicate that a significantly different ranking on theefficiency measures occurs across groups inhering varying strengths of IOS use pursuant tothe alternative IOS Assimilation Strategies. The results suggest that greater efficiency gainsmay obtain by pursuing a strategy to extend IOS range over IOS reach. Consequently,management is advised to weigh carefully which IOS benefits, in terms of efficiency andeffectiveness, are more important for substantiating IOS investments, and to make decisionsregarding IOS implementation accordingly.
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