Options in inter-organizational systems integration
Keywords:inter-organizational systems integration, centralization, inter-organizational processes, inter-organizational data sharing
AbstractInter-organizational systems integration can happen in many ways. Depending on the setting, one integration solution is more appropriate than another. If companies are to decide on the most appropriate solution for them, they need to know what all possible solutions are they can choose from and on what aspects these differ. The research question that is answered in this paper is on what relevant classificatory basis we can distinguish IOSI solutions; and given this classificatory basis, what is the complete set of IOSI solutions to choose from? We used a grounded theory approach, studying several inter-organizational integration cases, standards and technologies. The theoretical contribution of this paper is that it identifies a six-dimensional inter-organizational systems integration solution space. The six dimensions concern data design, process design, process execution control, task execution, data transmission and data storage, each of which is considered from a (de)centralization perspective. These (de)centralization dimensions are, at least in theory, orthogonal to each other. The research is relevant for practitioners because taking a position on the dimensions implies choosing a solution with distinct properties. Properties of solutions are discussed so as to make it easier for companies to choose an appropriate solution. The main novelty of the paper is that it defines a comprehensive integration solution space by introducing the important concept of centralization at the level of inter-organizational information systems.
Ahituv, N., Neumann, S., Zviran, M. (1989) “Factors affecting the policy for distribution computing resources”, MIS Quarterly, Vol 13, No.4, pp389-401.
Al-naeem, T. et al. (2005) “Systematic approaches for designing B2B applications”, International Journal of Electronic Commerce, Vol 9, No.2, pp41-70.
Alexander, E.R. (1995) How organizations act together – interorganizational coordination in theory and practice. Gordan and Breach Publishers.
Alt, R., Fleisch, E. (2001) “Business Networking Systems: Characteristics and Lessons Learned”, International Journal of Electronic Commerce, Vol 5, No.2, pp7-27.
Andersson, J., and Johnson, P. (2001) “Architectural integration styles for largescale enterprise software systems”, In Proceedings of the Fifth IEEE International Enterprise Distributed Object Computing Conference (WANG G, LUPU E and WEGMANN A, Eds), pp 224–237, Los Alamitos, CA: IEEE Computer Society Press.
Andersson, M., Lindgren, R., Henfridsson O. (2008) “Architectural knowledge in inter-organizational IT innovation”, Journal of Strategic Information Systems, Vol 17, No.1, pp19-38.
Boonstra, A., de Vries, J. (2005) “Analzing inter-organizational systems from a power and interest perspective”, International journal of Information Management, Vol 25, No.6, pp485-501.
Boonstra, A., de Vries, J. (2008) “Managing stakeholders around inter-organizational systems: a diagnostic approach”, Journal of Strategic Information Systems, Vol 17, No.3, pp190-201.
Bray, O.H. (1982) Distributed Database Management Systems, Lexington Books, Toronto.
Brown, C.V. and Magill, S.L. (1994) “Alignment of the IS Function with the Enterprise: Toward a Model of Antecedents”, MIS Quarterly, Vol 18, No.4, pp371-403.
Carmel, E. and Agarwal, R. (2002) “The maturation of offshore sourcing of information technology work”, MIS Quarterly Executive, Vol 1, No.2, pp65–77.
Cash, J.I., McFarlan, W.F., McKenney, J.L. and Applegate, L.M. (1992) Corporate Information Systems Management: Text and Cases (3rd ed.), Irwin, Homewood, IL.
Chatfield, A.T. and Yetton P. (2000) Strategic payoff from EDI as a function of EDI embeddedness. Journal of Management Information Systems 16(4), 195-224.
Choudhury V (1997) Strategic choices in the development of interorganizational information systems. Information Systems Research 8(7), 1-24.
Chwelos, P., Benbasat, I. and Dexter, A.S. (2001) Research report: Empirical test of an EDI adoption model, Information Systems Research, 12, 3, 304-321.
Christiaanse, E. and Venkatraman, N. (2002) Beyond Sabre: An Empirical Test of Expertise Exploitation in Electronic Channels, MIS Quarterly, 26, 1, 15-38.
CIMdata (2003). Using Federation to Integrate the Extended Enterprise, (2003), p 10.
CIMdata (2005). Eurostep’s Share-A-space – Making your intellectual assets the backbone of your information management strategy, CIMdata Program Review, (April 2005), p 14.
Clemons, E.K. and Hitt, L.M. (2004) Poaching and the Misappropriation of Information: Transaction Risks of Information Exchange, Journal of Management Information Systems, 21, 2, 87-107.
Coase, R. (1937) “The nature of the firm”, Economica, Vol 4, pp386-405.
Damsgaard, J. and Truex, D. (2000) “Binary trading relations and the limits of EDI standards: the Procrustean bed of standards”, European Journal of Information Systems, Vol 9, No.3, pp173-188.
Daniel, E.M. and White, A. (2005) “The future of inter-organisational system linkages: findings of an international Delphi study”, European Journal of Information Systems, Vol 14, No.2, pp188-203.
Davenport, T. and Short, J. (1990) “The New Industrial Engineering: Information Technology and Business Process Redesign”, Sloan Management Review. Summer, pp11-27.
Drucker, P. (1954) The practice of management, NY Harper and Row, p 404.
Dubray J.J. (2005) Fundamentals of process orientation. Retrieved from http://www.attachmate.com.
Dunning J. (1988) Explaining International Production. Unwin Hyman, London.
ebXML Technical Architecture Project Team (2001). ebXML Technical Architecture Specification v1.0.4.
ebXML Business Process Technical Committee (2006). ebXML Business Process Specification Schema Technical Specification v2.0.3.
Elgarah, W., Falaleeva, N., Saunders, C.S., Ilie, V., Shim, J.T., Courtney, J.F. (2005) “Data exchange in interorganizational relationships: review through multiple conceptual lenses”, The Database for advances in Information Systems, Vol 36, No.1.
Elsbach, K.D., Sutton, R.I. (1992) “Acquiring Organizational Legitimacy through Illigitimate Actions: a marriage of institutional and impression management theories”, Academy of Management Journal, Vol 35, No.4, pp699-738.
Evaristo, J.R., Desouza, K.C., Hollister, K. (2005) “Centralization Momentum: The pendulum swings back again”, Communications of the ACM, Vol 48, No.2, pp67-71.
Federation Press Release (2006), Retrieved from http://www.federationsoftware.com on September 28, 2006.
Fiedler, K.D., Grover, V., Teng, J.T.C. (1996) “An empirically derived taxonomy of information technology structure and its relationship to organizational structure”, Journal of Management Information Systems, Vol 13, No.1, pp9-34.
Fredrickson, J.W. (1986) “The Strategic Decision Process and Organizational Structure”, Academy of Management Review, Vol 11, No.2, pp280-197.
Glaser, B.G., and Strauss, A.L. (1974) “The discovery of grounded theory: strategies for qualitative research”, Aldine Publishing Company, Chicago.
Glaser, B. (1992) “Emergence vs. Forcing: Basics of Grounded Theory Analysis”, Sociology Press.
Glaser, B. (1998) “Doing Grounded Theory: Issues and Discussions”, Sociology Press.
Goethals, F., Vandenbulcke, J., Lemahieu, W., Snoeck, M., Cumps, B. (2005) “Two Basic Types of Business-to-Business integration”, International Journal of E-Business Research, Vol 1, No.1, 1-15.
Goethals, F., Lemahieu, W., Snoeck, M., Vandenbulcke, J. (2007) “Extended Enterprise Integration vs. Market B2B Integration”, in Putnik GD, Cunha MM, Encyclopedia of Networked and Virtual Organizations.
Goethals, F. (2008) “Important issues for evaluating inter-organizational data integration configurations”, The Electronic journal of Information Systems Evaluation, Vol 11, No.3, pp185-196.
Gosain, S., Malhotra, A., El Sawy, O.A. (2005) “Coordinating for flexibility in e-business supply chains”, Journal of Management Information Systems, Vol 21, No.3, pp7-46.
Harris, M., Raviv, A. (2002) “Organization Design”, Management Science, Vol 48, No.7, pp852-865.
Herbsleb, J.D. and Mockus, A. (2003) “An empirical study of speed and communication in globally-distributed software development”, IEEE Transactions on Software Engineering, Vol 29, No.6, pp1–14.
Hong, I.B. (2002) “A new framework for interorganizational systems based on the linkage of participants’ roles”, Information & Management, Vol 39, No.4, pp261-270.
Isabella, L.A. (1990) “Evolving interpretations as a change unfolds: how managers construe key organizational events”, Academy of Management Review, Vol 33, No.1, pp7-41.
Jain, H., Ramamurthy, K., Ryu, H., Yasai-Ardekani, M. (1998) “Success of data resource management in distributed environments: an empirical investigation”, MIS Quarterly, Vol 22, No.1, pp1-29.
Johnston R.B. and Gregor S. (2000) A theory of industry-level activity for understanding the adoption of interorganizational systems. European Journal of Information Systems 9(4), 243-251.
Kauffman, R.J. and Mohtadi, H. (2004) Proprietary and Open Systems Adoption in E-Procurement: A Risk Augmented Transaction Cost Perspective, Journal of Management Information Systems, 21, 1, 137-166.
Kavantzas N (2004) Aggregating Web Services: Choreography and WS-CDL. Retrieved from http://lists.w3.org/Archives/Public/www-archive/2004Jun/att-0008/WS-CDL-April2004.pdf on October 1, 2009.
Khandwalla, P.N. (1974) “Mass orientation of operations technology and organizational structure”. Administrative Science Quarterly, Vol 19, pp74-97.
King, J.L. (1983) “Centralized versus decentralized computing”, Computing surveys, Vol 15, No.4, pp319-349.
Kotlarsky J. and Oshri I. (2005) Social ties, knowledge sharing and successful collaboration in globally distributed system development projects. European Journal of Information Systems 14(1), 37-48.
Levina N., Birks D., Fernandez W., Nasirin S. (2009) Call For Papers EJIS special issue on Applying the Grounded Theory Approach in Information Systems Research, Retrieved from http://www.palgrave-journals.com/ejis on September 7, 2009.
Levy, M., Loebbecke, C. and Powell, P. (2003) “SMEs, co-opetition and knowledge sharing: the role of information systems”, European Journal of Information Systems, Vol 12, No.1, pp3-17.
Little, M. (2007) Contexts, Coordination and Transactions for Web Services, Springer Berlin, pp439-453.
Madleberger M and Roztocki N (2008) Cross-Organizational and Cross-Border IS/IT Collaboration: A Literature Review. In Proceedings of the 14th Americas Conference on Information Systems, Toronto, Canada.
Malhotra, A., Majchrzak, A., Carman, R. and Lott, V. (2001) Radical Innovation Without Collocation: A Case Study at Boeing-Rocketdyne., MIS Quarterly, 25, 2, 229-249.
Malhotra, A., Gosain, S., El Sawy, O.A. (2005) “Absorptive capacity configurations in supply chains: gearing for partner-enabled market knowledge creation”, MIS Quarterly, Vol 29, No.1, pp145-187.
Martin, P.Y. and Turner, B.A. (1986) “Grounded Theory and Organizational Research”, The journal of applied behavioral science, Vol 22, No.2, pp141-157.
Mintzberg, H. (1992) Structure in fives. Prentice Hall.
Orlikowski, W.J. (1993) “CASE Tools as Organizational Change: Investigating Incremental and Radical Changes in Systems Development”, MIS Quarterly, Vol 17, No.3, pp309-340.
Paterson T.T. (1959). Management Theory. London Business publishers.
Patnayakuni, R., Rai, A., Seth, N. (2006) “Relational antecedents of information flow integration for supply chain coordination”, Journal of Management Information Systems, Vol 23, No.1, pp13-49.
Peltz, C. (2003) “Web Services Orchestration and Choreography”, IEEE Computer, Vol 36, No.10, pp46-52.
Pigneur Y., Osterwalder A. (2008) Reader for the Case Study TicketCorner, Cases in Information Systems.
Quaddus M, Hofmeyer G (2007) An investigation of factors influencing the adoption of B2B trading exchanges in small businesses. European Journal of Information Systems 16(3), 202-215.
Robey D, Im G, Wareham J (2008) Theoretical foundations of empirical research on interorganizational systems: assessing past contributions and guiding future directions. Journal of the Association for Information Systems 9(9), 497-518.
Sambamurthy, V., Wei, K., Lim, K. and Lee, D. (2007) “IT-Enabled Organizational Agility and Firms' Sustainable Competitive Advantage”, ICIS 2007 Proceedings. Paper 9
SAP (2005). SAP NetWeaver, “Using IT practices and IT scenarios to understand SAP NetWeaver – end-to-end process integration”, [online], http://searchsap.techtarget.com/tip/1,289483,sid21_gci1146885,00.html?bucket=ETA.
Sarker, S. and Sahay, S. (2004) “Implications of space and time for distributed work: an interpretive study of US-Norwegian system development teams”, European Journal of Information Systems, Vol 13, No.1, pp3–20.
Schwinn, A., Schelp, J. (2003) „Data integration patterns“, In Proceedings of BIS (Business Information Systems) 2003, Colorado Springs, USA, p 7.
Simon, H.A. (1994) The sciences of the artificial (2nd ed). The MIT Press, Cambridge, Massachusetts.
Son, J.-Y., Narasimhan, S. and Riggins, F.J. (2005) “Effects of Relational Factors and Channel Climate on EDI Usage in the Customer--Supplier Relationship”, Journal of Management Information Systems, Vol 22, No.1, pp321-354.
Stein, J.C. (2000) “Information production and capital allocation: Decentralized vs. hierarchical firms”, Working paper, MIT Sloan School of Management, MIT, Cambridge, MA.
Straub, D.W., Rai, A. and Klein, R. (2004) “Measuring Firm Performance at the Network Level: A Nomology of the Business Impact of Digital Supply Networks”, Journal of Management Information Systems, Vol 21, No.1, pp 83-114.
Streeter, D.N. (1973) “Centralization or dispersion of computing facilities”, IBM Systems Journal Vol 3, pp283 – 301.
Swanson, E.B. and Ramiller, N.C. (2004) “Innovating Mindfully with Information Technology”, MIS Quarterly, Vol 28, No.4, pp553-583.
Tavakolian, H. (1989) “Linking the information technology structure with organizational competitive strategy: a survey”, MIS Quarterly, Vol 13, No.3, pp309-317.
Taylor, J.R., Tucker, C.C. (1989) “Reducing data processing costs through centralized procurement”, MIS Quarterly, Vol 13, No.4, pp487-499.
Teo, H.H., Wei, K.K. and Benbasat, I. (2003) Predicting Intention to Adopt Interorganizational Linkages: An Institutional Perspective, MIS Quarterly, 27, 1, 19-49.
Turner B.A. (1983) The use of grounded theory for the qualitative analysis of organizational behaviour. Journal of Management Studies 20(3), 333-348.
Vaishnavi, V. and Kuechler, B. (2006) Design Research in Information Systems, [online], http://ais.affiniscape.com/displaycommon.cfm?an=1&subarticlenbr=279.
Van der Aalst, W. (2000) “Loosely coupled interorganizational workflows: modeling and analyzing workflows crossing organizational boundaries”, Information & Management, Vol 37, pp67-75.
Von Simson E.M. (1990) The centrally decentralized IS organization. Harvard Business Review, 158-162.
Wang, E.T.G., Tai, J.C.F. and Wei, H.-L. (2006) A Virtual Integration Theory of Improved Supply-Chain Performance, Journal of Management Information Systems, 23, 2, 41-64.
Weill P. (2004) Don’t just lead, Govern: How top-performing firms govern IT. MIS Quarterly Executive 3(1), 1-17.
Weill P. and Ross J. (2005) A Matrixed Approach to Designing IT Governance. MIT Sloan Management Review Winter 2005, 25-34.
W3C (2005) Web Services Choreography Description Language Version 1.0. Retrieved from http://www.w3.org/TR/ws-cdl-10/ on October 1, 2009.
White A, Daniel E, Ward J, Wilson H (2007) The adoption of consortium B2B e-marketplaces: an exploratory study, Journal of Strategic Information Systems, 16(1), 71-103.
WMC (1999). Workflow Management Coalition: Terminology & Glossary, p 65, Retrieved from http://www.wfmc.org/ on September 7, 2009.
WMC (1995). Workflow Management Coalition: The Workflow Reference Model, p 55, Retrieved from http://www.wfmc.org on September 7, 2009.
Xue, Y., Liang, H., Boulton, W.R. (2008) “Information technology governance in information technology investment decision processes: the impact of investment characteristics, external environment, and internal context”, MIS Quarterly, Vol 32, No.1, pp67-96.
Zhu, K., Kraemer, K.L., Gurbaxani, V. and Xu, S.X. (2006) Migration to Open-Standard Interorganizational Systems: Network Effects, Switching Costs, and Path Dependency, MIS Quarterly, 30, Special Issue, 515-539.
The author bears the responsibility for checking whether material submitted is subject to copyright or ownership rights (e.g. figures, tables, photographs, illustrations, trade literature and data). The author will need to obtain permission to reproduce any such items, and include these permissions with their final submission.
It is our policy to ask all contributors to transfer for free the copyright in their contribution to the journal owner. There are two broad reasons for this:
- ownership of copyright by the journal owner facilitates international protection against infringement of copyright, libel or plagiarism;
- it also ensures that requests by third parties to reprint or reproduce a contribution, or part of it, in either print or electronic form, are handled efficiently in accordance with our general policy which encourages dissemination of knowledge within the framework of copyright.
In conformity with the French law, the author keeps the 'moral rights' related to the article:
- The 'authorship right': It is the author's right to have his name associated with each publication and exploitation of the article.
- The 'integrity right': It can be claimed by the author if he finds that during an exploitation, his work has been distorted (cutting, reassembly...).