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| Author: | Clemons, E. Reddi, S. Row, M. |
| Title: | The impact of information technology on the organization of economic activity: the "move to the middle" hypothesis |
| Journal: | Journal of Management Information Systems
1993 : FALL, VOL. 10:2, p. 9-35 |
| Index terms: | INFORMATION TECHNOLOGY RESEARCH TRANSACTION COSTS |
| Language: | eng |
| Abstract: | Investments to increase the level of explicit coordination with outside agents have generally resulted in increased risk to the firm; firms have traditionally avoided this increased risk by becoming vertically integrated or by underinvesting in coordination. This paper argues that information technology (IT) has the ability to lower coordination cost without increasing the associated transactions risk, leading to more outsourcing and less vertically integrated firms. |
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