J. Dedrick;K. L. Kraemer

The impacts of IT on firm and industry structure: The personal computer industry

INFORMATION TECHNOLOGY; MARKETS; TRUST

The adoption of information technology has had major impacts on firm and industry organization. The personal computer industry has evolved from a value chain with well-defined roles for firms in different industry segments to a flexible global value network through which PC firms outsource many of their activities to increasingly capable suppliers. The industry's Value network is organized mostly through market mechanisms, particularly for routine activities. A smaller number of complex activities involve closer trust-based relationships, but market discipline is used to reduce the risk of opportunism. IT has played a major role in this transformation. For routine activities, IT enables standardization and automation of processes, allowing effective coordination via market transactions. For more complex activities, IT supports close integration of activities through internal IT systems or customized interorganizational systems.

2005

Journal Article

English

Univ Calif Irvine, Personal Comp Ind Ctr, Irvine, CA 92717 USA. Univ Calif Irvine, Paul Merage Sch Business, Irvine, CA USA. Univ Calif Irvine, Ctr Res Informat Technol & Org, Irvine, CA USA.; Dedrick, J, Univ Calif Irvine, Personal Comp Ind Ctr, Irvine,

California Management Review

0008-1256

122-+

47 / 3

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