Date Ticker FIRMCOUNT Risk Adjusted Return (γ) Change in Market

5/7/1996 ISLI 2 0.0243426-1.892630856-0.00243786

IMPACT OF IT PRODUCT COMPATIBILITY INITIATIVES ON THE MARKET VALUE OF FIRMS

Product compatibility is becoming increasingly important especially in the IT industry due to a high level of network effect in this industry. This study empirically examines the business value of IT product compatibility initiatives with respect to the nature of the compatibility achieved (i.e., horizontal compatibility, vertical compatibility) and the type of focal product (i.e., software, hardware) for which compatibility is achieved. Using event study methodology, this paper investigates the market reaction to announcements of compatibility initiatives over a three-year period. The results show that business announcements associated with horizontal compatibility yield higher abnormal returns than the ones with vertical compatibility. Also compatibility initiatives for software products tend to be associated with a more positive stock market reaction than those for hardware products. Our findings reveal the nuances in IT product compatibilities and the need to develop a richer theory to enhance our understanding of the various IT compatibilities. Our findings also provide business insights to strategic planners and help them understand how and when to invest in IT product compatibilities to obtain positive reactions from investors

Partnering for perfection: An economics perspective on B2B electronic market strategic alliances

Also published in Becker, A. (ed.). (2007). Electronic commerce: Concepts, methodologies, tools, and applications (pp. 1953-1977). Hershey, PA: IGI Global.</p

Business Models for Internet-Based E-Procurement Systems and B2B Electronic Markets: An Exploratory Assessment

Information technology (IT) has long been applied to support the exchange of goods, services and information between organizations. Early on, when interorganizational information systems (IOIS) like EDI systems were introduced, electronic markets emerged for business purchasing. However, it is only with the advent of Internet-based e-procurement systems and business-to-business (B2B) electronic markets that the real opportunities for any-to-any (A2A) online transactions have opened up across space and over time. The extensive connectivity offered by online trading networks creates value by lowering communication and search costs. But this benefit is just one aspect of what is desired by adopting firms. The other aspect is that purchasing firms expect to maintain established long-term relationships with preferred suppliers. As a result, private aggregating and negotiating mechanisms are being adopted for large quantity business supply purchases, while public market mechanisms are more often adopted when firms face uncertain and high variance demand. This paper draws on IS and economics theory to investigate the motivation for the various online business models, and the adoption requirements of purchasing firms, through the examination of a set of mini-cases. Keywords: Business-to-business e-commerce, buyer-supplier relationships, e-business, electronic markets, e-procurement, interorganizational information systems. _____________________________________________________________________________________ 1