The Coordination Mechanism of Inter-Organizational Transaction in Electronic Commerce Environments

Abstract

This article has explored the concepts of coordination and inter-organizational coordination mechanisms. Based on a case of automobile procurement, the evolutional issue of coordination mechanisms in electronic commerce has been studied. We establish a framework, which describes how IT impacts on inter-organizational transactions coordination mechanisms according to system science. We conclude that inter-organizational coordination in EC environment includes not only the innovation of coordination mechanisms, but also the improvement of inter-organizational relationships. To explain the transactions coordination mechanisms, we integrate both economic and political organization management perspectives. But which theory is more feasible depends on the transactions' nature and inter-organizational relationship's environment, the latter includes trust factor. Our theory can further direct study on the impact of IT on inter-organizational relationships