Innovative perspectives: value creation and electronic procurement
15 Aug 2005-pp 417-422
TL;DR: This research addresses the very important question of the impact of web-based electronic procurement systems on corporate governance, as related to organizational purchasing and value creation, with a value creation mechanism in the form of an electronic procurement data base model.
Abstract: This research addresses the very important question of the impact of web-based electronic procurement systems on corporate governance, as related to organizational purchasing and value creation. Unlike traditional marketplaces where the sale and purchase of products takes place at specific locations, the electronic marketplace is mainly designed to use the Internet infrastructure to exchange information and create virtual communities in space (Hagel and Armstrong 1997), where transactions between buyer and seller take place.But a lack of theoretical investigation and empirical evidence suggests uncertainty as to whether the Internet and electronic technology based transactions represents a 'new economy' unbounded by traditional economic principles (Arthur 1994; Porter 2001). For reasons of competitive advantage and intellectual property ownership, there remains a 'paucity of studies' investigating value creation mechanisms in the electronic commerce sector (Park, Mezias and Song 2004 p8). This paper suggests a value creation mechanism in the form of an electronic procurement data base model. This generic model was developed for a multinational organization and successfully tested with two other multinational organizations. The capturing of this ephemeral data and creating value from it is the focus of this paper.
Citations
More filters
01 Apr 2006
TL;DR: In this article, the authors highlight the strategic choices, various profiles and salient factors of electronic procurement (eprocurement) and identify some factors which are important when adopting a strategic, rather than a tactical e-procurement perspective.
Abstract: The research, based on an interdisciplinary literature review, highlights the strategic choices, various profiles and salient factors of electronic procurement (eprocurement). The authors identify some factors which are important when adopting a strategic, rather than a tactical e-procurement perspective. The article proposes a broad framework for assessing the e-procurement performance relationship and provides an understanding of the impact of e-procurement on organizational performance. The proposed research framework suggests that alignment among business strategy, e-procurement strategy, e-procurement tool, strategic IT capability and strategic typology have a positive influence on a company’s strategic performance.
7 citations
References
More filters
Book•
01 Jan 2008
TL;DR: The Japanese companies, masters of manufacturing, have also been leaders in the creation, management, and use of knowledge-especially the tacit and often subjective insights, intuitions, and ideas of employees as discussed by the authors.
Abstract: Japanese companies, masters of manufacturing, have also been leaders in the creation, management, and use of knowledge-especially the tacit and often subjective insights, intuitions, and ideas of employees.
16,886 citations
TL;DR: In this paper, it was pointed out that many of the current disputes with regard to both economic theory and economic policy have their common origin, it seems to me, in a misconception about the nature of the economic problem of society.
Abstract: Many of the current disputes with regard to both economic theory and economic policy have their common origin, it seems to me, in a misconception about the nature of the economic problem of society. This misconception in turn is due to an erroneous transfer to social phenomena of the habits of thought we have developed in dealing with the phenomena of nature.
8,226 citations
Book•
01 Nov 1994
TL;DR: Williamson as discussed by the authors combines institutional economics with aspects of contract law and organization theory to identify and explicate the key differences that distinguish three generic forms of economic organization-market, hybrid, and hierarchy.
Abstract: Oliver E. Williamson University of California, Berkeley This paper combines institutional economics with aspects of contract law and organization theory to identify and explicate the key differences that distinguish three generic forms of economic organization-market, hybrid, and hierarchy. The analysis shows that the three generic forms are distinguished by different coordinating and control mechanisms and by different abilities to adapt to disturbances. Also, each generic form is supported and defined by a distinctive type of contract law. The costeffective choice of organization form is shown to vary systematically with the attributes of transactions. The paper unifies two hitherto disjunct areas of institutional economics-the institutional environment and the institutions of governance-by treating the institutional environment as a locus of parameters, changes in which parameters bring about shifts in the comparative costs of governance. Changes in property rights, contract law, reputation effects, and uncertainty are investigated.'
6,602 citations
Book•
01 Jan 1996
TL;DR: The Mechanisms of Governance as discussed by the authors is an important work in the field of transaction cost economics, a branch of the New Institutional Economics with which Oliver Williamson is especially associated.
Abstract: This book brings together in one place the work of one of our most respected economic theorists, on a field which he has played a large part in originating: the New Institutional Economics. Transaction cost economics, which studies the governance of contractual relations, is the branch of the New Institutional Economics with which Oliver Williamson is especially associated. Transaction cost economics takes issue with one of the fundamental building blocks in microeconomics: the theory of the firm. Whereas orthodox economics describes the firm in technological terms, as a production function, transaction cost economics describes the firm in organizational terms, as a governance structure. Alternative feasible forms of organization--firms, markets, hybrids, bureaus--are examined comparatively. The analytical action resides in the details of transactions and the mechanisms of governance. Transaction cost economics has had a pervasive influence on current economic thought about how and why institutions function as they do, and it has become a practical framework for research in organizations by representatives of a variety of disciplines. Through a transaction cost analysis, The Mechanisms of Governance shows how and why simple contracts give way to complex contracts and internal organization as the hazards of contracting build up. That complicates the study of economic organization, but a richer and more relevant theory of organization is the result. Many testable implications and lessons for public policy accrue to this framework. Applications of both kinds are numerous and growing. Written by one of the leading economic theorists of our time, The Mechanisms of Governance is sure to be an important work for years to come. It will be of interest to scholars and students of economics, organization, management, and law.
4,051 citations