Most Popular Books by Andrew McAfee

This paper argues that in many industries IT adoption will lead to increased use of hierarchies instead of markets for coordinating economic activity. This contradiction of the ''electronic markets hypothesis'' stems from a focus on process-enabling information technologies (PEITs). PEITs are competitively valuable in many industries, and are more easily deployed within hierarchical organizational structures. This is because Hierarchies have access to selective intervention by senior managers, while markets generally do not, and because the asset specificity and impossibility of complete contracting with PEIT make it optimal to place these technologies under common control. This paper defines PEIT, discusses its salient characteristics, and uses economics literature on the theory of the firm to support an ''electronic hierarchies hypothesis.''

This paper presents a model, based on organizational design literature, of the impact of Enterprise Resource Planning (ERP) software on operational effectiveness. Convergent, discriminant, and predictive validity of the model''s proposed constructs are evaluated using a dataset gathered from implementers of ERP systems via a survey instrument. To address the problems inherent in single-respondent survey research, multiple respondents were solicited from each participating organization. This research finds support for all three types of validity at the level of the implementation, although convergent and discriminant validity are generally not demonstrated when individual responses within each implementation are compared.

Discusses ERP basics, pros & cons of process reengineering and standardization, and change management issues.

This paper uses concepts from the theory of the firm and MIS research to argue that some types of information technology (IT) will be deployed only within hierarchical governance structures. This argument introduces a contingency into the ''electronic markets hypothesis, '' which holds that greater use of IT is unidirectionally associated with reduced use of hierarchies. We revisit the assumption that interfirm IT is never a relationship-specific asset. While many types of interfirm IT are highly redirectable others are not, and become relationship-specific assets once configured for a particular context; these assets are referred to here as enterprise information technologies. Because complete contracts over IT assets are not possible, relationship specificity is an important consideration; scholarship on the theory of the firm yields a consistent prescription that when assets are relationship specific and contracts incomplete, the single decision-making authority of a hierarchy is optimal. The paper therefore argues that when enterprise IT is required, so is an electronic hierarchy: a collaboration in which one member has all required decision rights over jointly used IT.

Since the mid-1990s, productivity growth has accelerated in the U.S. economy. In this paper, we identify several other changes in the economy that have occurred during the same time and argue that they are consistent with an increased use of information technology (IT) in general and enterprise information technology in particular. In a series of case studies, we find that IT can enable firms to more rapidly replicate improved business processes throughout an organization, thereby not only increasing productivity but also market share and market value.

This paper uses economics literature on the theory of the firm, MIS research, and numerous case examples to argue that in some circumstances information technology (IT) will lead to increased use of hierarchies, rather than markets, as modes for organizing economic activity. This conclusion, which runs counter to the longstanding 1electronic markets hypothesis, 2 is based on the realization that some categories of computer-mediated interaction require substantial ex ante negotiation, and rely on relationship-specific assets. Haggling and learning, incomplete contracting, and asset specificity become important considerations in these circumstances, and in combination lead to well-documented biases toward hierarchies and away from markets. This paper categorizes computer-mediated interactions and articulates the ex ante agreements required for each, thus indicating where electronic hierarchies (a term defined in the text) will predominate.