STUDY OF THE DYNAMIC COORDINATION MECHANISM OF INTERORGANIZATIONAL INFORMATION SYSTEMS UNDER NEGATIVE NETWORK EXTERNALITIES

ZHUANG Weiqing,LIU Zhenyu

Journal of Systems Science and Mathematical Sciences ›› 2015, Vol. 35 ›› Issue (4) : 472-488.

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Journal of Systems Science and Mathematical Sciences ›› 2015, Vol. 35 ›› Issue (4) : 472-488. DOI: 10.12341/jssms12555

STUDY OF THE DYNAMIC COORDINATION MECHANISM OF INTERORGANIZATIONAL INFORMATION SYSTEMS UNDER NEGATIVE NETWORK EXTERNALITIES

  • ZHUANG Weiqing1 , LIU Zhenyu2
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Abstract

This paper starts as a point of manufacturer and suppliers' revenue, and considers the network externality of IOS to study on the dynamic coordination relationships and strategies for interorganizational information systems. Firstly, this paper sets discrete dynamic properties of network externalities and two control vectors of attraction mechanism and competition mechanism, and then gives the network externalities' dynamic optimal control algorithm and some propositions. Then, builds revenue structure models, and simulates the evolutionary trajectory of network externalities, manufacturer and suppliers' revenue, the IOS number of suppliers joined under two cases of whether the manufacturer provides the suppliers subsidy policy or not, and comes to the dynamic rule of the interorganizational information systems' coordination of the manufacturer and suppliers. Results suggest that 1) with the increasing number of suppliers, the marginal competition mechanism will be greater than marginal attraction mechanism, making the impact of negative network externalities is far greater than positive network externalities; 2) the impact of positive network externalities and negative network externalities coincide with Metcalfe's law (N(N1)) under without considering subsidy policy, and the impact of negative network externalities is slightly larger than the Metcalfe's law (N(N1)) under considering subsidies policy; 3) it should encourage suppliers to enter IOS at the initial stage because the faster reaction about the change of subsidy policy after suppliers entering IOS at the initial stage; 4) the more gains both manufacturer and suppliers can obtain under considering the subsidy policy than without considering the subsidy policy, so the manufacturer should actively adopt the subsidy policy to suppliers to inhibit negative network externalities that all suppliers will join the IOS.

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ZHUANG Weiqing , LIU Zhenyu. STUDY OF THE DYNAMIC COORDINATION MECHANISM OF INTERORGANIZATIONAL INFORMATION SYSTEMS UNDER NEGATIVE NETWORK EXTERNALITIES. Journal of Systems Science and Mathematical Sciences, 2015, 35(4): 472-488 https://doi.org/10.12341/jssms12555
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