ABSTRACT

It has been widely publicized that along the value chain in certain sectors (such as retailing and car manufacturing), IOS have been set up for the exchange of product information, orders and invoices (Li, 1995). Similarly, competing firms in certain sectors have also collaborated to provide common communications infrastructures for essential services. Examples include: the LINK network of cash dispensing machines among the main UK banks and building societies (Li, 1995); the online seat reser-

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a group of independent transportation firms for the exchange of jobs and for avoiding the running of empty vehicles on return delivery trips (Bloch, 1987). Such cases have demonstrated that IOS can serve to stabilize and strengthen existing relations between firms and raise the entry barriers for potential competitors (e.g., Emmelhainz, 1987; Large, 1987; Sharpe, 1987; Rochie, 1993).