Appropriating Value From CRS Ownership in the Airline Industry

It is difficult for the firm competing through information technology (IT) resources to gain a sustainable advantage because systems are easy to imitate and often substitute resources are available to competitors. The innovator may be unable to appropriate all of the benefits from IT investments. Airlines have installed computerized reservations systems (CRSs) in travel agencies in order to appropriate the returns from their investments in information technology. The airlines expected to obtain a number of benefits from this strategy including increased efficiency, possible bias in favor of the CRS owner on the part of the travel agent, and fees from other airlines for making reservations for them. The purpose of this paper is to evaluate the appropriation of value by CRS owners from deploying systems in travel agencies. These benefits, beyond fees from travel agents, should be seen in the vendor airline's market share between cities and in the overall performance of the airline at an industry level. This paper models airline performance as a function of CRS ownership at two levels: for selected city-pairs and at the overall level of the firm. The city-pair analysis employs a multinomial logit (MNL) market share model that analyzes five years of data on 72 city-pair routes. The industry model uses longitudinal data for a panel of ten airlines for twelve years. The results of both analyses support hypotheses that CRS ownership is positively related to airline performance. It appears that strong airlines have appropriated the benefits of their CRSs, turning them into highly specialized assets for further travel-related innovation. This work offers useful theoretical extensions and methodological approaches for the study of similar kinds of network technology innovations that are currently being deployed in association with electronic commerce on the Internet.Information Systems Working Papers Serie

APPROPRIABILITY AND THE INDIRECT VALUE OF CRS OWNERSHIP IN THE AIRLINE INDUSTRY

It is difficult for the firm investing in information technology (IT) to appropriate a1 of the benefits from its investment for itself- it is very easy to imitate innovations in IT. Airlines have installed computerized reservations systems (CRSs) in travel agencies in order to appropriate the returns from their investments in information technology. The airlines expected to obtain a number of benefits from this strategy including increased efficiency, possible bias in favor of the CRS owner on the part of the travel agent, and fees from other airlines for making reservations for them. The purpose of this paper is to evaluate the impact of the indirect (non-fee) benefits to CRS owners from deploying systems in travel agencies. These indirect benefits should be seen in the vendor airline's market share between cities and in the overall performance of the airline at an industry level. This paper models airline performance as a function of CRS ownership at two levels: for selected city-pairs and at the overall level of the firm. The city-pair analysis employs a multinomial logit market share model using five years of data on 72 routes. The industry model uses longitudinal data for a panel of ten airlines for twelve years. The results of both analyses support hypotheses that CRS ownership is positively related to airline performance, It appears that strong airlines have appropriated the indirect benefits of their CRSs, turning them into highly specialized assets for further travel-related innovation.Information Systems Working Papers Serie

Pennsylvania Folklife Vol. 34, No. 3

• Johann Adam Eyer: Lost Fraktur Writer of Hamilton Square • Aunt Lydia • The Image of the Jew in South-Central Pennsylvania • Gertrude Rapp: Harmony Society Abbess • Aldes un Neieshttps://digitalcommons.ursinus.edu/pafolklifemag/1107/thumbnail.jp

Using Real Options Analysis for Evaluating Uncertain Investments in Information Technology: Insights from the ICIS 2001 Debate

Business and information systems (IS) executives continue to grapple with issues of risk and uncertainty in evaluating investments in information technology (IT). Despite the use of net present value (NPV) and other investment appraisal techniques, executives are often forced to rely on instinct when finalizing IT investment decisions. Recognizing the shortcomings of NPV, real options analysis has been suggested as an alternative approach, one that considers the risks associated with an investment while recognizing the ability of corporations to defer an investment until a later period or to make a partial investment instead. Responding to a growing interest in real options analysis among the IS community, a debate involving four prominent researchers was convened at the 2001 International Conference on Information Systems (ICIS). In addition to offering a tutorial overview of real options, the goal of the debate was to assess the state of research in this area and to identify avenues for future research. This paper describes the outcomes of the debate, culminating in a series of research questions and topics that set the stage for future research in IT and real options analysis. A transcript of the debate and an overview of real options analysis are included as appendices

The Dutchman Vol. 7, No. 2

● Basketry, a Pennsylvania Dutch Art ● Decorative Elements in the Domestic Architecture of Eastern Pennsylvania ● Literature on Log Architecture ● Pennsylvania Tour of Europe ● Matters Genealogical ● Feeding Them by the Hundred ● The Zehn-uhr Schtickhttps://digitalcommons.ursinus.edu/dutchmanmag/1005/thumbnail.jp

Appropriating Value From CRS Ownership in the Airline Industry

It is difficult for the firm competing through information technology (IT) resources to gain a sustainable advantage because systems are easy to imitate and often substitute resources are available to competitors. The innovator may be unable to appropriate all of the benefits from IT investments. Airlines have installed computerized reservations systems (CRSs) in travel agencies in order to appropriate the returns from their investments in information technology. The airlines expected to obtain a number of benefits from this strategy including increased efficiency, possible bias in favor of the CRS owner on the part of the travel agent, and fees from other airlines for making reservations for them. The purpose of this paper is to evaluate the appropriation of value by CRS owners from deploying systems in travel agencies. These benefits, beyond fees from travel agents, should be seen in the vendor airline's market share between cities and in the overall performance of the airline at an industry level. This paper models airline performance as a function of CRS ownership at two levels: for selected city-pairs and at the overall level of the firm. The city-pair analysis employs a multinomial logit (MNL) market share model that analyzes five years of data on 72 city-pair routes. The industry model uses longitudinal data for a panel of ten airlines for twelve years. The results of both analyses support hypotheses that CRS ownership is positively related to airline performance. It appears that strong airlines have appropriated the benefits of their CRSs, turning them into highly specialized assets for further travel-related innovation. This work offers useful theoretical extensions and methodological approaches for the study of similar kinds of network technology innovations that are currently being deployed in association with electronic commerce on the Internet.Information Systems Working Papers Serie

The Dutchman Vol. 6, No. 2

● Spatterware ● That\u27s a Lot of Boloney ● A Dutch Touch ● Birds in Dutchland ● Cornelius Weygandt Day ● Brick-end Barns ● Hardly Bigger Than a Peanut ● Pennsylvania Dutch Pioneers ● Sycamores in Dutchland ● The Zehn-uhr Schtickhttps://digitalcommons.ursinus.edu/dutchmanmag/1001/thumbnail.jp

The Dutchman Vol. 7, No. 3

● Major and Minor in Fractur ● Gilbert and Mason - Pennsylvania Wood Engravers ● Barring Out the Schoolmaster ● The Himmelreich Collection ● A Mennonite Encyclopedia ● Pennsylvania Crafts Event ● Europe Calling ● Book Note ● Pennsylvania Dutch Pioneers ● The Zehn-uhr Schtickhttps://digitalcommons.ursinus.edu/dutchmanmag/1006/thumbnail.jp

Pennsylvania Folklife Vol. 31, No. 3

• Jamison City • Domestic Architecture in Lancaster County • Conversation with Marguerite de Angeli • Who Put the Turnip on the Grave? • Pennsylfawnisch Deitsch un Pfalzer: Dialect Comparisons Old and New • John Philip Boehm: Pioneer Pennsylvania Pastor • The Search for our German Ancestors • Aldes un Neieshttps://digitalcommons.ursinus.edu/pafolklifemag/1095/thumbnail.jp

Pennsylvania Folklife Vol. 40, No. 2

• Some Early Rural and Domestic Industries in Pennsylvania • Jacob Dickert, Rifle Maker • Several Early Woolen Mills of Western Pennsylvania • A Rural Craftsman in Present-Day Pennsylvania • Who is in the Kitchen? • Aldes un Neies (Old and New)https://digitalcommons.ursinus.edu/pafolklifemag/1130/thumbnail.jp