Competitive dynamics in electronic networks: A model and the case of interorganizational systems

Lei Chi, Clyde W. Holsapple, Cidambi Srinivasan

Research output: Contribution to journalArticlepeer-review

56 Scopus citations

Abstract

Interorganizational systems (IOS)-distributed computing systems that support processes shared by two or more firms-have become fundamental to business operations, opening avenues to unprecedented collaborative linkages, even among competitors, and to growing "co-opetition." As the role of IOS expands, electronic networks have become more complex and dense. This paper introduces competitive dynamics research and social network analysis into the study of IOS. A model of the associations between the constructs of IOS use, competitive action, and network structure is developed, and hypotheses are advanced about the relationships among the constructs. As a step toward external validation, measures are devised for operationalizing the constructs and examining the linkages suggested by the hypotheses in the context of an IOS-intensive network consisting of sports car makers and their value/supply-chain partners. The study (1) addresses interactive firm behaviors in e-business and highlights the value of competitor analysis, (2) provides new operational measures that can be generalized and thus enables systematic analysis of IOS use, and (3) identifies new roles of IOS in influencing firm behavior and performance beyond its traditional focus on efficiency and power functions.

Original languageEnglish
Pages (from-to)7-49
Number of pages43
JournalInternational Journal of Electronic Commerce
Volume11
Issue number3
DOIs
StatePublished - Mar 2007

Keywords

  • Co-opetition network
  • Competitive action
  • Competitive dynamics
  • IOS
  • Interorganizational systems
  • Network structure
  • Social networks

ASJC Scopus subject areas

  • Business and International Management
  • Economics and Econometrics

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