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Business Research: Electronic Market

Determinants of Information Technology Outsourcing – a cross-sectional Analysis

This article describes how the authors came up with a model and tested it to explore the factors that determine Information Technology outsourcing. This was done by incorporating both information technology and business perspectives. In particular, they were trying to explain the level of information technology outsourcing by the use of business and IT information (Loh & Venkatraman, 1992). This was reflected through their performance in the economy and the structures of their costs.

The authors tried to justify whether outsourcing was dependent upon business governance. This governance was in the form of financial advantage. The sample for the study was derived from the corporations in the United States. In total, 55 major corporations were selected and data collected. The data was then analyzed using multiple regression and factor analysis. The results suggested that the level of information technology outsourcing correlated with the costs of IT and business. The level of information technology outsourcing was however, not positively correlated with performance of IT.

The first research question in this research was to determine the relationship between the level of IT outsourcing and the cost structures of IT and business. The second research question was to determine the correlation between the level of information technology and the performance of IT in the corporations. I found the article interesting because I learnt about some of the issues faced in large corporation in U.S. concerning IT.

Executives’ perspective of the business value of information technology – a process-oriented approach

The authors of this article were responding to some of the issues on the profitability from IT. The full impact of information technology has not been accounted for since some of the benefits accrued from it may be intangible. Some firms have attempted to measure its profitability using economic analysis but this only gives estimates and cuts off a large portion of the benefits from IT (Tallon, Kraemer, & Gurbaxani, 2000).

This led the authors to adopt an inclusive approach in order to value IT. A comprehensive approach was also used. The authors therefore, adopted a model that was used to determine the impact of information technology on the vital business ventures within the corporations. The payoffs from IT were measured in the form of the practices within the business and the corporate objectives.

Research survey was conducted on three hundred and four business executives from around the globe. The data was analyzed and the conclusions confirmed that the corporate goals of the companies determined the level of payoff from information technology. This meant that the more the emphasis on goals were revolved around IT, the greater the payoff. The results also indicated that management practices determined the level of pay off derived from IT in the firm or business. Such practices as strategic alignment and investing in IT led businesses to earn more.

The first research question was to determine whether payoff from information technology was linked to the management practices of the company. Another was to determine whether the goals of the company also aided them achieve greater profitability. This article was interesting because it equipped me with information about the use and profitability from information technology in business.

Impact of electronic marketplace on transaction cost and market structure

In the recent past, a number of electronic market systems have come up and are being used in the corporate market. These systems were meant to make the firms improve the effectiveness of their transactions (Lee & Clark, 1996). Various industries have adopted the electronic market system successfully. However, in other areas, the system has not managed to work or has failed to extend to other industries as earlier expected due to it slow pace. This simply indicates that barriers exist and this has hindered the success of this venture.

The authors of the paper were attempting to analyze the reasons for the failure of the electronic systems to be adopted successfully. The authors selected four such cases – two of which had successfully adopted the electronic market system and two of which had not. The economic benefits were analyzed to determine the success of integrating information technology in to the market. This system was meant to increase efficiency and to reduce some of the costs that may be incurred during transactions.

The research question was to determine the barriers that hindered the full adoption of the electronic market system. This was done by assessing the resistance and the financial risks of its adoption. The authors provided suggestions on the implementation of the electronic system in the market. This article was interesting since I could learn that the electronic market system may be used to reduce costs and to increase the efficiency in a company.

The strategic intent of on-line trading systems – a case study in national livestock marketing

On-line trading has become rampant as many individuals and firms seek to sell their commodities over the computer network. The paper addresses the system that was introduced in Australia (Clarke & Jenkins, 1993). It a livestock trading scheme that is used to trade livestock in the country. Its founder, who is claimed to be the first ever to provide an information technology system that traded on livestock, called the system CALM. Secondary sources were used for the research since the information of the past transactions through the system had to be assessed. The research question was to identify the demerits in the explanatory power of the IT system. Suggestions were also to be made concerning the system.

The article was interesting because it opened my eyes to realize that any business whatsoever could be conducted over the internet. The use of IT to trade livestock in Australia has been successful and this is an encouragement to any businessman who feels that there is a product that he would want to trade without actually taking it to the market place.

The implementation of an electronic market for pig trading in Singapore

The electronic market has been used severally for the purpose of competitive gains. However, little has been done to describe the reality of situations in the event that an electronic market is introduced and implemented. An assumption that underlies this venture is that strategic IT is put in place to enable the firm compete in the business world. Little has also been done to study how the government uses information technology initiatives to alter the industrial structure for the purpose of regulation.

This paper addresses on a case study of an industry in Singapore. This was meant to provide a real-case scenario whereby an electronic market was used to alter the market structure of pig trade (Neo, 1992). This was done in order to shape the market to ensure efficiency and to deal with the social issue. The results describe the impacts of the electronic market and various lessons from the case study have been highlighted. The research question looked at whether the electronic market could be used to alter the current market structure. The article was interesting since it offered good information on how to use the electronic market to regulate the industry.


  1. Clarke, R., & Jenkins, M. (1993). The strategic intent of on-line trading systems: A case study in national livestock marketing. Journal of strategic Information System, 2(1), 57-76.
  2. Lee, H., & Clark, T. (1996). Impact of electronic marketplace on transaction cost and market structure. International Journal of Electronic Commerce, 1(1), 127-149.
  3. Loh, L., & Venkatraman, N. (1992). Determinants of Information Technology Outsourcing: A cross-sectional Analysis. Journal of Management Information Systems, 9(1), 7-24.
  4. Neo, B. (1992). The implementation of an electronic market for pig trading in Singapore. Journal of Strategic Information Systems, 1(5), 278-288.
  5. Tallon, P., Kraemer, K., & Gurbaxani, V. (2000). Executives’ perspective of the business value of information technology: A process-oriented approach. Journal of Management Information Systems, 16(4), 102-105.