Within and Beyond Firm Boundaries: Can Strategic Digitalization and Cross-Firm Information Integration Lessen Complex Uncertainty?
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Date
2023-01-03
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6389
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Inefficiencies and coordination failures in firm deci-sion-making may be caused by the lack of common or shared information. Game theory and information economics highlight complex uncertainty as a driver of such failures, so research is needed to delineate the roles of technology, digitalization, and cross-firm in-formation integration to address the problem within and beyond the firm’s boundaries. There are three rea-sons this is key to IS’s disciplinary development. Relational contracts within firm boundaries are pervasive, so maintaining shared information among decision-makers is hard. Thus, increased digitalization to reduce uncertainty is relevant for decision-making. Since interorganizational systems ease interfirm governance and shared decisions, connecting digitalization and firm-level transaction costs has become more importantt. The effects of uncertainty reduction depend on IS capabilities and effective cross-firm information integration. Weoffer new insights into performance differences for linked firms. To illustrate our perspective, we analyze several fintech minicases.
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Strategy, Information, Technology, Economics, and Society (SITES), complex uncertainty, cross-firm information sharing, economic theory, fintech firm application, strategic digitalization
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10
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Proceedings of the 56th Hawaii International Conference on System Sciences
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Attribution-NonCommercial-NoDerivatives 4.0 International
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