Sustained competitive advantage with inter-organizational information systems

Abstract

The sustainability of competitive advantage from an inter-organizational information system (IOIS) is considered. It is noted that sustainability has two aspects: retaining the competitive edge itself, or, failing that, retaining market share gained before competitors offset the edge. It is argued that in some cases an IOIS that promises to be profitable in the short run can turn out to provide only temporary advantage, and in the long term, can actually worsen a firm's position either by making it easier for buyers to switch suppliers or by promoting a price war.<>