The strategic use and misuse of interorganizational information systems: the case of EDI

The author considers the problem of managing IIS (interorganizational information system) technologies within trading networks off firms. Research on adopters of electronic data interchange (EDI) systems suggests that strategic advantages can be obtained from EDI in terms of supply and distribution channel control. However, potential advantages are largely unrealized for three reasons: loose-coupling with network partners obstructs necessary coordination; centralized control of EDI in inappropriate functional areas aggravates these coordination problems; and the failure to strategically integrate EDI within the firm limits its potential impact.<
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