Digital Systems, Partnership Networks, and Competition: The Co-Evolution of IOS Use and Network Position as Antecedents of Competitive Action

Abstract

This study examines and tests a holistic model of relationships among interorganizational systems (IOS), partnership networks of firms, and firms' competitiveness. The model integrates concepts from these three areas of study to give a basis for more fully understanding and investigating issues inherent in IOS-intensive coopetition networks. Introducing social network analysis and competitive dynamics research into this study, we test the model using an automotive network comprised of the world's major competing sports car makers and their many value/supply chain partners. We collect and analyze data about these firms' network structures, usage of IOS, and competitive actions. Results support the holistic view that there are systematic associations between IOS use, competitive action, and network structure. Based on this view, we introduce a framework characterizing the roles of IOS in achieving firm competitiveness.

Keywords:

• interorganizational systems
• IOS use
• competitive actions
• competition
• network structure

ACKNOWLEDGEMENT

We would like to thank Computational Sciences Center and von-Allmen e-Commerce Center at the University of Kentucky for their financial support for this research. We would also like to thank three anonymous JOCEC reviewers and three anonymous reviewers of Web2005 Fourth Workshop on e-Business for their critical comments and constructive suggestions. An earlier version of this research was presented at Web2005 Fourth Workshop on e-Business.