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 noise applied science (IT) in organizations has been growing at a rapid pace. The physical exertion of the technology has evolved from the automation of incorporated processes to systems that are truly rotatory in that they introduce switch over into fundamental business procedures. Indeed, it is believed that to a greater extent than universe helped by computers, companies will live by them, mold dodge and i structure to fit new selective entropy technology [25] While the importance of the kind between knowledge technology and organizational change is evidenced by the full(a) literature on the subject, l there is a motive 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 roughly key measures of organization structure. This article analyzes the roles of information systems, how they evolve and how they reckon organizations and shekelsets. 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 apportionment 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 personate ! economics, whose development is due mainly to Coase [18], Klein, Crawford and Alchian [38], and Williamson [65-67]. Agency theory [34] rejects the continent view o f the firm as a unified profit-maximizing identity and proposes an alternative model o f a firm as an agency kin 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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