The Impacts Of Is On Organizations And Markets (Ca

The Impact of Informatuon Systems on Organizations and Markets Vijay Gurbaxani and Seungjin Whang Z Z LU 0 Z 0 f- 3 .J The adoption of info applied science (IT) in organizations has been growing at a rapid pace. The physical exertion of the technology has evolved from the automation of organise processes to systems that are truly rotatory in that they introduce change into fundamental business procedures. Indeed, it is believed that to a greater extent than cosmos helped by computers, companies will live by them, mold dodge and i structure to fit new selective selective study technology [25] While the importance of the kind between information technology and organizational change is evidenced by the extensive literature on the subject, l there is a wishing of comprehensive analysis of these issues from the economic perspective. The aim of this article is I to develop an economic understanding of how information systems come to near key measures of organization structure. This article analyzes the roles of information systems, how they evolve and how they meet organizations and rangeets. In particular, we analyze the impact of I T on two i m p o r t a n t attributes o f f i r m s i f i r m size and the assignation of decisionmaking authority a m o n g the various actors in a firm.

To this end, we start with economic theories o f organization as the foundation for o u r analysis. Two such theories are relevant to o u r analysis: agency theory, inkially advanced and devel~ o p e d by Wilson [68], Ross [54], AIchian and Demsetz [2], and Jensen and Meckling [34], and transaction exist economics, wh! ose development is due mainly to Coase [18], Klein, Crawford and Alchian [38], and Williamson [65-67]. Agency theory [34] rejects the unsoiled view o f the firm as a unified profit-maximizing identity and proposes an alternative model o f a firm as an agency birth built on a set o f contracts a m o n g selfinterested agents (employees). As a consequence, when...If you want to get a full essay, mark it on our website: OrderCustomPaper.com

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