Access

You are not currently logged in.

Access your personal account or get JSTOR access through your library or other institution:

login

Log in to your personal account or through your institution.

The Impacts of IT on Firm and Industry Structure: The Personal Computer Industry

Jason Dedrick and Kenneth L. Kraemer
California Management Review
Vol. 47, No. 3 (Spring 2005), pp. 122-142
DOI: 10.2307/41166309
Stable URL: http://www.jstor.org/stable/41166309
Page Count: 21
  • More info
  • Cite this Item
Preview not available
Preview not available

Abstract

The adoption of information technology has had major impacts on firm and industry organization. The personal computer industry has evolved from a value chain with well-defined roles for firms in different industry segments to a flexible global value network through which PC firms outsource many of their activities to increasingly capable suppliers. The industry's value network is organized mostly through market mechanisms, particularly for routine activities. A smaller number of complex activities involve closer trust-based relationships, but market discipline is used to reduce the risk of opportunism. IT has played a major role in this transformation. For routine activities, IT enables standardization and automation of processes, allowing effective coordination via market transactions. For more complex activities, IT supports close integration of activities through internal IT systems or customized interorganizational systems.

Page Thumbnails

  • Thumbnail: Page 
122
    122
  • Thumbnail: Page 
123
    123
  • Thumbnail: Page 
124
    124
  • Thumbnail: Page 
125
    125
  • Thumbnail: Page 
126
    126
  • Thumbnail: Page 
127
    127
  • Thumbnail: Page 
128
    128
  • Thumbnail: Page 
129
    129
  • Thumbnail: Page 
130
    130
  • Thumbnail: Page 
131
    131
  • Thumbnail: Page 
132
    132
  • Thumbnail: Page 
133
    133
  • Thumbnail: Page 
134
    134
  • Thumbnail: Page 
135
    135
  • Thumbnail: Page 
136
    136
  • Thumbnail: Page 
137
    137
  • Thumbnail: Page 
138
    138
  • Thumbnail: Page 
139
    139
  • Thumbnail: Page 
140
    140
  • Thumbnail: Page 
141
    141
  • Thumbnail: Page 
142
    142