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A drastic reduction in the cost of transmitting information has tremendously increased the °ow and availability of information. Greater availability of information increases the ¯rm's ability to manage its supply chain and, therefore, increases its operational performance. However, current literature is ambiguous about whether increased information °ows leads to either a reduction or increase in transaction cost, which enable supply chains to migrate towards more market-based transactions or hierarchal-based transactions. This research empirically demonstrates that the governance structure of the supply chains changes towards market-based transactions due to a lowering of transaction costs after 1987. Much of the results is based on the theory of Transaction Cost Economics (TCE) and the role of asset speci¯city, uncertainty, an...
This dissertation investigates the use of information exchange in industrial supply chain relationships. Specific information exchange characteristics are analyzed to determine their contribution to firm performance from the perspective of both the technology champion firm and the trading partner firm. Longitudinal analyses are conducted using data gathered from an electronically mediated industrial exchange network. This unique dataset, which includes information exchange data for thirty-nine technology champion firms and their electronically integrated trading partners across a two-year observation period, provides distinct insights into the application and outcomes related to information exchange in contemporary supply chains. The analysis of this large volume of information exchange transactions identifies best practices in the...
As the cable television networks transition from a broadcast-only network, to a high-bandwidth two-way network, the importance and functionality of the set-top box increases. However, developments in the set-top box industry have been restrained by the control the cable companies have over their equipment. Currently, a set-top box includes closed, proprietary technology which prohibits its use on other cable systems' networks. This paper explores the possibility of abandoning closed, proprietary set-top box standards in favor of open standards. This "opening" of the set-top box is not a trivial matter since it challenges cable companies' concerns about security, quality, etc. The paper includes a policy analysis of the impact the Cable Act of 1984 and 1992 and the implications it had on the set-top box. To help quantify the benefits of...
The Internet, a growing network of networks, is an often touted and often misunderstood technology. It has its own infrastructure complete with service providers, private networks, user communities, international links, etc. similar to telephone or telegraph industries. However, the Internet is more decentralized and less application-specific than traditional telecommunication industries. These differences extend beyond the technology of the Internet to the economics and policies. This paper explores Internet economics, a growing field which encompasses the technology, economics, and policy surrounding the Internet. It identifies different communities who have overlapping interests in this field and how their preconceived notions of how the Internet operates create contradictory views on how this technology will continue to evolve in a...
This paper describes the emerging field of Internet Economics and some of the constituencies which are shaping it. It defines the motivating factors for looking at this area, reviews some recent research results, and explores areas of overlapping interest. The paper concludes with six recommendations for further work. different academic disciplines which have done work related to Internet economics: technology, economics, and policy. Each of these areas has important contributions to make to the field but there has been little consensus across disciplines (or even within disciplines) on which direction to take. Figure 1 shows a Venn diagram which tries to characterize the constituencies' current motivation to look at Internet economics.
Based upon the Internet perspective, this paper will attempt to clarify and revise several ideas about the separation between infrastructure facilities and service offerings in digital communications networks. The key notions that we will focus on in this paper are: i) the bearer service as a technology-independent interface which exports blind network functionality to applications development; ii) the organizational consequences associated with the emergence of a sustainable market of bearer service: a clear movement at the level of industrial structure from traditional hierarchies to more market coordination.
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