Physical Sciences and Mathematics Commons^™

Proprietary And Open Systems Adoption In E-Procurement: A Risk-Augmented Transactions Cost Perspective, Robert J. Kauffman, Hamid Mohtadi

Research Collection School Of Computing and Information Systems

We present an economic model that enables the study of incentives for business-to-business (B2B) e-procurement systems investments that permit inventory coordination and improved operational control. We focus on the information technology adoption behavior of firms in the presence of transaction costs, agency costs and information uncertainty. We conclude that it is appropriate to rethink the prior theory and develop an extended transaction-cost theory perspective that incorporates the possibility of shocks. We distinguish among three kinds of B2B e-procurement systems platforms. Proprietary platform procurement systems involve traditional electronic data interchange (EDI) technologies. Open platform procurement systems are associated with e-market Web …