Appropriating Value from Computerized Reservation System Ownership in the Airline Industry

Organization Science

Volumn 12, Issue 6, 2001, Pages 702-728

  Duliba, Katherine A ^a   Kauffman, Robert J ^a   Lucas Jr , Henry C ^a  

^a NONE

Author keywords

Agency automation; Airlines; Appropriability; Computerized reservation systems; Corporate strategy; E commerce; Information technology; Market share; Travel industry

Indexed keywords

EID: 0035603689     PISSN: 10477039     EISSN: None     Source Type: Journal    
DOI: 10.1287/orsc.12.6.702.10087     Document Type: Article

References (74)

1. Air Transportation Association of America. 1987. Strikes Under the Railway Labor Act: U.S. Carriers, 1946-1986. Air Conference, Washington, DC.
2. Bailey, E. 1988. Price-service-quality diversity in deregulated airline markets. G. Libecap, ed. Advances in the Study of Entrepreneurship, Innovation and Economic Growth, Volume 2. JAI Press, Greenwich, CT, 13-46.
3. Bakos, J. Y. 1991. A strategic analysis of electronic marketplaces. Management Inform. Systems Quart. 15(4) 295-310.
4. _. 1998. The emerging role of electronic marketplaces on the Internet. Comm. ACM. 41(8) 35-42.
5. Banker, R. D., H. H. Johnston. 1995. An empirical study of the business value of the U.S. airlines' computerized reservation systems. J. Organ. Comput. 5(3) 255-275.
6. _, R. J. Kauffman. 1988. Strategic contributions of information technology: An empirical study of ATM networks. J. DeGross, M. Olson, eds. Proc. Ninth Internat. Conf. Inform. Systems, Minneapolis, MN, 141-150.
7. Barney, J. 1991. Firm resources and sustained competitive advantage. J. Management 17(1) 99-120.
8. Barua, A., C. H. Kriebel, T. Mukhopadhyay. 1995. Information technologies and business value: An analytical and empirical study. Inform. Systems Res. 6(1) 3-23.
9. Baumol, W. J., J. C. Panzar, R. D. Willig. 1988. Contestable Markets and the Theory of Industry Structure, Revised Ed. Harcourt Brace Jovanovich, New York.
10. Belsley, D. A., E. Kuh, R. E. Welch. 1980. Regression Diagnostics: Identifying Influential Data and Sources of Collinearity. John Wiley and Sons, New York.
11. Borenstein, S. 1989. Hubs and high fares: Dominance and market power in the U.S. airline industry. Rand J. Econom. 20(3) 344-365.
12. _. 1991. The dominant-firm advantage in multiproduct industries: Evidence from the U.S. airlines. Quart. J. Econom. 106(4), 1237-1266.
13. Breusch, T., A. Pagan. 1979. A simple test for heteroskedasticity and random coefficient variation. Econometrica 47 1287-1294.
14. Brynjolfsson, E. 1993. The productivity paradox of information technology. Commun. ACM 35(12) 67-77.
15. _, L. Hitt. 1994. The three faces of information technology value: Theory and evidence. Proc. Fifteenth Internat. Conf. Inform. Systems Vancouver, 263-277.
16. _, _. 1996. Paradox lost? Firm-level evidence on the returns to information systems spending. Management Sci. 42(2) 541-558.
17. Caves, D., L. Christensen, M. Tretheway. 1981. U.S. trunk air carriers, 1972-1977: A multilateral comparison of total factor productivity. T. Cowing, R. Stevenson, eds. Productivity Measurement in Regulated Industries. Academic Press, New York.
18. Chircu, A. M., R. J. Kauffman. 2000. Reintermediation strategies in business-to-business electronic commerce. Internat. J. Electr. Commerce 4(4) 7-42.
19. _, _, D. Keskey. 2001. Maximizing the value of Internet-based corporate travel systems. Comm. ACM, 44(11).
20. Clemons, E. K. 1991. Evaluation of strategic investments in information technology. Comm. ACM 34(1) 22-36.
21. _, S. P. Reddi, M. C. Row. 1993. The impact of information technology on the organization of economic activity: The move to the middle hypothesis. J. Management Inform. Systems 10(2) 9-35.
22. _, M. Row. 1988. A case study of economist: A strategic information system. J. Management Inform. Systems 5(1) 36-50.
23. _, _. 1991. Information technology at Rosenbluth Travel. J. Management Inform. Systems 8(2) 53-79.
24. Cohen, M., J. March, J. Olsen. 1972. A garbage can model of organizational choice. Admin. Sci. Quart. 17 1-18.
25. Cooper, L. G., M. Nakanishi. 1988. Market Share Analysis: Evaluating Competitive Market Effectiveness. Kluwer Academic Publishers, Boston, MA.
26. Copeland, D., J. McKenney. 1988. Airline reservations systems: Lessons from history. Management Inform. Systems Quart. 12(3) 353-370.
27. Cornwell, C., P. Schmidt, R. Sickles. 1990. Production frontiers with cross-sectional and time-series variation in efficiency levels. J. Econometrics 46 185-200.
28. Davamanirajan, P., T. Mukhopadhyay, C. Kriebel, R. Kauffman. 1999. Systems design, process performance and economic outcome. Working paper, Graduate School of Industrial Administration, Carnegie Mellon University, Pittsburgh, PA.
29. Davern, M. J., R. J. Kauffman. 2000. Discovering value and realizing potential from information technology investments. J. Management Inform. Systems 16(3) 121-143.
30. Davidson, R., J. MacKinnon. 1981. Several tests for model specification in the presence of alternative hypotheses. Econometrica 49 499-517.
31. Doganis, R. 1985. Flying Off Course: The Economics of International Airlines. George Allen and Unwin Publishers, London, U.K.
32. Dos Santos, B., K. Peffers. 1995. Rewards to investors in innovative information technology applications: A study of first movers and early followers in ATMs. Organ. Sci. 5(2) 241-259.
33. Farrell, J., G. Saloner. 1986. Installed base and compatibility: Innovation, product preannouncements and predation. Amer. Econom. Rev. 76(5) 940-955.
34. Ghosh, A., C. S. Craig. 1983. Formulating retail location strategy in a changing environment. J. Marketing 47 (Summer) 56-68.
35. Goldfeld, S., R. Quandt. 1965. Some tests for homoskedasticity. J. Amer. Statis. Assoc. 60 539-547.
36. Greene, W. 1990. Econometric Analysis. Macmillan, New York.
37. Harris, S. E., J. L. Katz. 1991. Organization performance and information technology investment intensity in the insurance industry. Organ. Sci. 2(3) 263-295.
38. Harvey, A., G. Phillips. 1974. A comparison of the power of some tests for heteroskedasticity in the general linear model. J. Econometrics 2307-316.
39. Jain, A., V. Mahajan. 1979. Evaluating the competitive environment in retailing using multiplicative competitive interactive model. Research in Marketing: Volume 2. JAI Press, Greenwich, CT, 217-235.
40. Johnson, R., M. Vitale. 1988. Creating competitive advantage with interorganizational information systems. Management Inform. Systems Quart. 12(2) 153-165.
41. Judge, G. G., W. E. Griffiths, R. Carter Hill, H. Lutkepohl, T. S. Lee. 1985. The Theory and Practice of Econometrics, 2nd ed. John Wiley and Sons, New York.
42. Kauffman, R. J., J. J. McAndrews, Y. M. Wang. 2000. Opening the 'black box' of network externalities in network adoption. Inform. Systems Res. 11(1) 61-82.
43. Kennedy, P. 1985. A Guide to Econometrics, 2nd ed. The MIT Press, Cambridge, MA.
44. Kmenta, J. 1986. Elements of Econometrics. Macmillan, New York.
45. Loveman, G. W. 1994. An assessment of the productivity impact of information technologies. T. J. Allen, M. S. Scott Morton, eds. Information Technology and the Corporation of the 1990: Research Studies. MIT Press, Cambridge, MA.
46. Lucas, H. C., Jr. 1975. The use of an accounting information system, action and organizational performance. Accounting Rev. 50(4) 735-746.
47. _. 1993. The business value of IT: An historical perspective and thoughts for future research. R. D. Banker, R. J. Kauffman, M. A. Mahmood, eds., Strategic Information Technology Management: Perspectives on Organizational Growth and Competitive Advantage. Idea Group Publishing, Harrisburg, PA, 359-374.
48. _. 1999. Information Technology and the Productivity Paradox: Assessing the Value of Investing in IT. Oxford University Press, New York.
49. Lyle, C. 1988. Computer-age vulnerability in the international airline industry. J. Air Law and Commerce 54(1) 161-179.
50. Malone, T., J. Yates, R. Benjamin. 1987. Electronic markets and electronic hierarchies. Comm. ACM. 30(6) 484-497.
51. Mata, F., W. Fuerst, J. Barney. 1995. Information technology and sustained competitive advantage: A resource-based view. MIS Quart. 9(4) 487-505.
52. Morrison, S. A., C. Winston. 1989. Enhancing the performance of the deregulated air transportation system. Brookings Papers on Economic Activity. Brookings Institution, Washington, DC, 61-123.
53. Mukhopadhyay, T., V. Mangal. 1997. Direct and indirect impacts of information technology applications on productivity: A field Study. Internat. J. Electron. Commerce 1(3) 1-18.
54. Nakanishi, M., L. G. Cooper. 1974. Parameter estimation for multiplicative competitive interaction model: Least squares approach. J. Marketing Res. 11 (August) 303-311.
55. O'Callaghan, R., P. J. Kaufmann, B. R. Konsynski. 1992. Adoption correlates and share effects of electronic data interchange systems in marketing channels. J. Marketing 56 (April) 45-56.
56. Premkumar, G., K. Ramamurthy. 1995. The role of interorganizational and organizational factors on the decision mode for adoption of interorganizational systems. Decision Sci. 26(3) 303-336.
57. Reuters/I. P. Sharp Associates Limited. 1988a. ODIA User's Guide: Ticket Dollar Value Origin and Destination Data, a publication of the Data Services Documentation group, 2 First Canadian Place, Suite 1900, Toronto, Ontario, Canada, M5X 1E3, Publication Code 0693-8805-E2, May 1988a.
58. _. 1988b. Aviation Data Overview, a publication of the Data Services Documentation group, 2 First Canadian Place, Suite 1900, Toronto, Ontario, Canada, M5X 1E3, December 6, 1988b (draft version).
59. Saloner, G., A. Shepard. 1995. Adoption of technologies with network effects: An empirical examination of the adoption of automated teller machines. Rand J. Econom. 26(3) 279-501.
60. Sickles, R. 1985. A nonlinear multivariate error components analysis of technology and specific factor productivity growth with an application to the U.S. airlines. J. Econometrics 27 61-78.
61. _, D. Good, R. Johnson. 1986. Allocative distortions and the regulatory transition of the U.S. airline industry. J. Econometrics 33 143-163.
62. Smith, J. 1984. Market performance in domestic airline markets. Transportation J. 24(1) 51-57.
63. Stephenson, F. J., R. Fox. 1992. Corporate strategies for frequent flier programs. Transportation J. 32(1) 38-50.
64. Strassmann, P. 1990. The Business Value of Computers. The Information Economics Press, New Canaan, CT.
65. Teece, D. 1987. Profiting from technological innovation: Implications for integration, collaboration, licensing, and public policy. D. Teece, ed. The Competitive Challenge. Harper and Row, New York.
66. U.S. Department of Transportation. 1993. National Transportation Statistics: 1960-1993. Information available via The Bureau of Transportation Statistics, The Office of Airline Information, Office of the Secretary of Transportation, Washington, DC: Available on the Internet at 〈www.bts.gov/programs/btsprod/nts93html〉.
67. U.S. Department of Transportation. 2000. OAI International Air Passenger and Freight Statistics. Annual information available via The Bureau of Transportation Statistics, The Office of Airline Information, Office of the Secretary of Transportation, Washington, DC, various issues. Available on the Internet at 〈www.bts.gov/oai/international/index.html〉.
68. U.S. Department of Transportation. 1988. Study of Airline Computer Reservations Systems. DOT-P-37-88-2, Office of the Secretary of Transportation, Washington, DC, May.
69. U.S. Department of Transportation. 1990. Secretary's Task Force on Competition in the U.S. Domestic Airline Industry: Executive Summary. Office of the Secretary of Transportation, Washington, DC. February.
70. U.S. Senate. 1989a. Airline Concentration at Hub Airports: Hearing Before the Committee on Commerce, Science and Transportation of the One Hundredth Congress, Second Session. S. Hrg. 100-959, U.S. Government Printing Office, Washington, DC.
71. U.S. Senate. 1989b. Airline Computer Reservation Systems: Hearing Before the Subcommittee on Antitrust, Monopolies and Business Rights of the Committee on the Judiciary of the One Hundredth Congress, First Session. Serial J-100-46, S. Hrg. 100-971, U.S. Government Printing Office, Washington, DC.
72. Venkatraman, N., A. Zaheer. 1990. Electronic integration and strategic advantage: A quasi-experimental study in the insurance industry. Inform. Systems Res. 1(4) 377-393.
73. Weill, P. 1992. The relationship between investment in information technology and firm performance: A study of the valve manufacturing sector. Inform. Systems Res. 3(4) 307-333.
74. White, H. 1980. "A heteroskedasticity-consistent covariance matrix estimator and a direct test for heteroskedasticity," Econometrica 48, 817-838.