IOS ASSIMILATION STRATEGIES: AN EMPIRICAL APPRAISAL

Abstract

Interorganizational information systems (IOS) are increasingly relied on to facilitate the electronic exchange of data among organizations. Though substantive progress by the research community toward understanding IOS technology has been made, one unattended issue is understanding more fully the efficacy of alternative management strategies for assimilating IOS into organizational processes. Referred to here as IOS assimilation strategies, these strategies may offer to management useful alternatives for planning for and proceeding with IOS implementation. Conceptually based on Keen's (1991) notions of "reach" and "range" regarding organizations' computing infrastructure, two IOS Assimilation Strategies are tested for their comparative effects on three efficiency and six effectiveness measures. The empirical results, based on data from forty-eight organizations of the Group Insurance industry and the nonparametric Friedman test for significance testing, indicate that a significantly different ranking on the efficiency measures occurs across groups inhering varying strengths of IOS use pursuant to the alternative IOS Assimilation Strategies. The results suggest that greater efficiency gains may obtain by pursuing a strategy to extend IOS range over IOS reach. Consequently, management is advised to weigh carefully which IOS benefits, in terms of efficiency and effectiveness, are more important for substantiating IOS investments, and to make decisions regarding IOS implementation accordingly.