The Unified Procurement Strategy for Enterprise Software: A Test of the ‘Move to the Middle’ Hypothesis.

To increase their firms' competitiveness, information technology (IT) managers are adopting a strategy that many deemed risky in the past. Recent IT advances combined with certain firm and industry characteristics are prompting firms to move toward a unified procurement strategy for enterprise...

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Main Authors: KAUFFMAN, Robert John, Tsai, J.Y.
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Language:English
Published: Institutional Knowledge at Singapore Management University 2009
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Online Access:https://ink.library.smu.edu.sg/sis_research/2750
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spelling sg-smu-ink.sis_research-37502015-11-12T06:48:07Z The Unified Procurement Strategy for Enterprise Software: A Test of the ‘Move to the Middle’ Hypothesis. KAUFFMAN, Robert John Tsai, J.Y. To increase their firms' competitiveness, information technology (IT) managers are adopting a strategy that many deemed risky in the past. Recent IT advances combined with certain firm and industry characteristics are prompting firms to move toward a unified procurement strategy for enterprise software solutions. Unified procurement occurs when a firm elects to purchase all compatible products and services from a single vendor. Key benefits of unified procurement involve motivating managers to alter their procurement strategy. At the top of the list of benefits is transferred risk, which includes risks that can be transferred from one participating party to another during a transaction. In the case of unified procurement, they include technology risks and integration costs that are transferred from the procurement firm to its vendor. Firms have been shifting toward a unified procurement strategy for enterprise software solutions. We discuss the evolution of procurement practices in an industry that exemplifies a manifestation of Clemons et al.'s [10] "move to the middle" hypothesis predictions. The adoption of unified procurement is being driven by changes in IT, firm, and industry structure. We explore the "move to the middle," transaction cost economics, and industry clockspeed theory to explain this phenomenon. We present a series of propositions that extend the prior theory to the more specific setting of enterprise software procurement-an example of middle range theory development-and use mini-cases to validate the various perspectives that we offer. 2009-10-01T07:00:00Z text https://ink.library.smu.edu.sg/sis_research/2750 info:doi/10.2753/MIS0742-1222260208 Research Collection School Of Computing and Information Systems eng Institutional Knowledge at Singapore Management University Software Engineering
institution Singapore Management University
building SMU Libraries
continent Asia
country Singapore
Singapore
content_provider SMU Libraries
collection InK@SMU
language English
topic Software Engineering
spellingShingle Software Engineering
KAUFFMAN, Robert John
Tsai, J.Y.
The Unified Procurement Strategy for Enterprise Software: A Test of the ‘Move to the Middle’ Hypothesis.
description To increase their firms' competitiveness, information technology (IT) managers are adopting a strategy that many deemed risky in the past. Recent IT advances combined with certain firm and industry characteristics are prompting firms to move toward a unified procurement strategy for enterprise software solutions. Unified procurement occurs when a firm elects to purchase all compatible products and services from a single vendor. Key benefits of unified procurement involve motivating managers to alter their procurement strategy. At the top of the list of benefits is transferred risk, which includes risks that can be transferred from one participating party to another during a transaction. In the case of unified procurement, they include technology risks and integration costs that are transferred from the procurement firm to its vendor. Firms have been shifting toward a unified procurement strategy for enterprise software solutions. We discuss the evolution of procurement practices in an industry that exemplifies a manifestation of Clemons et al.'s [10] "move to the middle" hypothesis predictions. The adoption of unified procurement is being driven by changes in IT, firm, and industry structure. We explore the "move to the middle," transaction cost economics, and industry clockspeed theory to explain this phenomenon. We present a series of propositions that extend the prior theory to the more specific setting of enterprise software procurement-an example of middle range theory development-and use mini-cases to validate the various perspectives that we offer.
format text
author KAUFFMAN, Robert John
Tsai, J.Y.
author_facet KAUFFMAN, Robert John
Tsai, J.Y.
author_sort KAUFFMAN, Robert John
title The Unified Procurement Strategy for Enterprise Software: A Test of the ‘Move to the Middle’ Hypothesis.
title_short The Unified Procurement Strategy for Enterprise Software: A Test of the ‘Move to the Middle’ Hypothesis.
title_full The Unified Procurement Strategy for Enterprise Software: A Test of the ‘Move to the Middle’ Hypothesis.
title_fullStr The Unified Procurement Strategy for Enterprise Software: A Test of the ‘Move to the Middle’ Hypothesis.
title_full_unstemmed The Unified Procurement Strategy for Enterprise Software: A Test of the ‘Move to the Middle’ Hypothesis.
title_sort unified procurement strategy for enterprise software: a test of the ‘move to the middle’ hypothesis.
publisher Institutional Knowledge at Singapore Management University
publishDate 2009
url https://ink.library.smu.edu.sg/sis_research/2750
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