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A Theory of Informedness and Business Network Co-Production

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3 Author(s)
Kauffman, R.J. ; W.P. Carey Sch. of Bus., Arizona State Univ., Phoenix, AZ, USA ; Ting Li ; van Heck, E.

In this theory-building research, we develop a set of propositions to examine the existence, the essential workings, and the conditions for value created and borne by business network co-production. We use transaction cost economics and informedness theory to explain why business network co-production exists; how informedness enhances value; and why customers, a network orchestrator and open standards add value to co-production. We use multiple observations from the public transport industry to validate the theoretical perspectives we develop. Triggered by liberalization and enabled by smart cards, this industry is going through a digital transformation from segmented travel to providing networked travel, where service vendors co-produce customer travel services to produce multimodal customer-oriented services.

Published in:

System Sciences (HICSS), 2010 43rd Hawaii International Conference on

Date of Conference:

5-8 Jan. 2010