Business process digitization, strategy, and the impact of firm age and size: the case of the magazine publishing industry |
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| Authors: | Anat BarNir John M Gallaugher Pat Auger |
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| Institution: | a Department of Management, College of Business Administration, University of North Texas, Denton, TX 76203, USA;b Department of Operations and Strategic Management, Wallace E. Carroll School of Management, Boston College, Chestnut Hill, MA 02467, USA;c Melbourne Business School, Carlton, Victoria 3053, Australia |
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| Abstract: | Despite increasing interest among researchers and practitioners in the field of Internet commerce, significant controversy remains regarding the large incumbent versus nimble newcomer dynamic. This paper explores issues related to firm age and size and the firm's propensity to engage in Internet-enabled process digitization by conducting an empirical investigation based on a sample of 150 firms in the magazine publishing industry. Results suggest that (a) differences exist as a function of firm age and size in the degree and manner in which firms digitize business processes through the Internet, (b) Internet-enabled digitization of business processes is associated with both strategies of innovation and of low cost, and (c) the digitization–strategy relationship is stronger for new versus established firms and for smaller versus larger firms. |
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