Diffusion of Innovation Theory and the Problem of Context for Inter-Organizational Information Systems

This chapter argues that diffusion theory models like the technology acceptance model (TAM) need to be rethought of in light of contextual factors that are becoming increasingly important in modern inter-organisational settings. This is due to the growing complexity of organizations with respect to different organisational types, contexts, and political structures that have been shown in research literature to hinder information systems acceptance. The chapter looks at possible contextual factors that are ignored by TAM by critiquing its parent diffusion theory (diffusion of innovations). This approach was considered best as there are many variations of TAM, but the diffusion of innovations (DOI) theory underlies all these variations. The chapter also recommends a way forward for research into inter-organisational information systems by examining an example situation of Feral Information Systems (FIS) to illustrate the problem. The chapter concludes with a discussion about future research directions.

The Effect of Merger and Acquisitions on the IS Function

Merger and acquisition (M&A) activity has many strategic and operational objectives. One operational objective is to develop common and efficient information systems that can be the source of creating significant cost savings for the joined companies. In combining the IS divisions of the acquiring firm with that of the acquired firm there are many hurdles when the technical and social system are to be integrated. Exactly how this process will evolve and exactly what results can be achieved is hard to determine. This chapter identifies some of the major factors associated with the integration process and proposes Agent Based Simulation as a possible methodology to study this phenomenon.

Organisational Change and Acceptance

This chapter reports on the development of the technology acceptance model from 1986 when Davis investigated technology acceptance from an individual’s view as to the ease of use and perceived usefulness of a system. Since then, many variations have been presented in attempts to explain how and what influences a computer system user’s uptake of new technology within an organisation. Whilst all variations were developed explicitly to predict users’ acceptance or rejection of new technology, these variations are in essence predictors of acceptance or rejection of change. Factors such as the organisational change environment and informal communication (rumours), together with social influence as exercised by colleagues should be considered major contributors to the perceptions of new technology and therefore acceptance. This chapter extends the original model to include the variations and proposes that rather than look at technology acceptance in isolation, acceptance of new technology should be viewed as acceptance of change. The author proposes the model Social Influence and Change Acceptance (SICAM) to reflect the inclusion of TAM’s variations in an organizational change context.

The Theory of Constraints

In the late 1970s, a new approach to the management of operations was developed by Goldratt. Now known as the theory of constraints (TOC), it provides a coherent management theory for running an organisation. It has two major components: a philosophy which underpins the working principle of on-going improvement and a generic approach for investigating, analyzing, and creating solutions to problems, called the “thinking process” (TP). Several books, numerous articles, and a few journal special issues have been published on TOC. This chapter provides a comprehensive review of TOC concepts, philosophy, and working principles.

Using Actor-Network Theory to Research the Adoption of Inter-Organizational Information Systems

Inter-organizational information systems depend at least as much on collaboration across organizational cultures as on the development of technical infrastructure for their success. Actor-network theory (ANT) is a useful approach for bringing together social and technical considerations. In this chapter we discuss key features of ANT and show how it might be applied to a particular case of IOIS adoption; this ANT approach is compared to co-evolutionary theory which was originally applied to this case. Some possible extensions to ANT are contemplated, and we offer advice to those attempting ANT-based research. We also give advice, based on ANT, to those undertaking IOIS development.

Trust and Transaction Cost in Supply Chain Cost Optimization

This chapter describes the relationship between trust and transaction cost in supply chain operations. Empirical findings from several research studies on trust and transaction cost in supply chain operations will be presented in support of the argument for managing transaction cost in supply chain management. A suggested future research agenda on this topic is also provided.

Transaction Costs in Inter-Organizational Systems

Besides describing the core elements of TCE, this paper also shows the application of this concept for purchasing and supply decisions. Therefore, we do have a closer look on outsourcing problems, sourcing strategy decisions, and information technology/e-procurement adoption.

The Technology Acceptance Model

This chapter examines the factors affecting consumer purchasing behavior in Internet shopping. Multiple group analysis and structural equation modeling were applied to investigate whether the existing model of Consumer Acceptance of Virtual Stores is able to identify those factors in Japan and South Korea. The results of online questionnaires completed by 1,111 Japanese online customers and by 998 Korean online customers revealed that the model failed. Therefore, localized models for Japan and South Korea were developed. According to the localized models, perceived trust is the most important factor affecting purchasing behavior of Japanese customers. In South Korea, purchasing behavior is highly related to perceived usefulness and perceived service quality. These differences in the ways that online customers of different nationalities perceive purchasing through the Internet will yield insights that can help e-commerce vendors increase the number of customers in different world market segments.

Information Management for Public Budget Decision Making

Information is very important throughout the government budgetary process which consists of budget preparation, budget appropriations, budget execution, and auditing and evaluation. When their budgets are prepared, agencies need various sources of data including those related to all types of government revenues and expenditures, economic conditions, agency needs, and services to provide. In each phase of the budgetary process, data are needed for decision making concerning the amount of money to allocate, the programs to establish, outputs to measure, performance to evaluate, and goals and objectives to accomplish. In the United States, these data have been provided via various types of budgetary techniques, including line-item budgeting, program budgeting, planning-program budgeting systems, performance budgeting and zero-based budgeting.

Theoretical Foundations of Inter-Organizational Information Systems

Research on Inter-Organizational Information Systems (IOIS) provided many insights, which, however, are very fragmented in terms of applied theories. This results in a quite isolated understanding of single aspects of IOIS rather than a comprising approach to the research subject. To address these shortcomings, the chapter investigates seven theories in respect of their explanation of IOIS adoption and use, its drivers, IOIS-based collaboration between firms, and benefits and costs of IOIS. The applied theories are social exchange theory and embeddedness theory (organization theories), transaction cost theory and agency theory (economics-related theories), the resource-based view of the firm and network theory (strategic management approaches), and game theory. The findings and the resulting framework imply that all these theories lead to similar recommendations on the use of IOIS although they have very diverse assumptions and lines of argumentation. The chapter stresses that the investigated theories supplement rather than contradict each other.