Proprietary and Open Systems Adoption: A Risk-Augmented Transactions Cost Perspective.

This article presents an economic model that enables the study of incentives for business-to-business (B2B) e-procurement systems investments which permit inventory coordination and improved operational control. We focus on the information technology (IT) adoption behavior of firms in the presence of transaction costs, agency costs and information uncertainty. But we conclude that it is appropriate to rethink the prior theory and develop an...