An assumption in prior research is that debt is homogeneous and provides inappropriate governance for R&D investments. We argue that debt is heterogeneous: although transactional debt does indeed impose strict contractual constraints that provide inappropriate governance for R&D investments, relational debt has very different characteristics that provide more appropriate governance. Using a sam...

Contemporary research on business value has examined the impacts of IT investments at various levels of analysis. This research examines the impacts of IT investments by a partner. The impacts of partner’s investments are examined for the individual firms, as well as for the overall value co-created for the relationship. Further, we examine whether the value that is co-created is in fact approp...

If asset specificity renders the investing party dependent ex post, why would the ex ante willingness to make relationship-specific investments vary? We show how specific investments generate both positive and counter-negative cooperative incentives. We also observe the influences of trust and time horizon on these incentives, which are aggregated to derive the specific investments effect (SIE)...

For several years researchers & practitioners have been concerned about the impact of investments in Information & Communication Technologies (ICT) on productivity. The research framework of neoclassical growth accounting is widely used in this area of research on IT & Productivity. While several studies have explored the relationship between investments in ICT and metrics such as GDP, the link...

By employing leverage to gain more exposure to stocks when young, individuals can achieve better diversification across time. Using stock data going back to 1871, we show that buying stock on margin when young combined with more conservative investments when older stochastically dominates standard investment strategies—both traditional life-cycle investments and 100%-stock investments. The expe...

This article tests whether parents reinforce or compensate for child endowments. We estimate how the difference in birth weight across siblings impacts specific parental investments: breast-feeding, well-baby visits, immunizations, and preschool attendance. Our results indicate that normal-birthweight children are 5%-11% more likely to receive early childhood parental investments than their low...

INTRODUCTION Worldwide B2B e-commerce revenues are expected to reach $2.7 trillion by the end of 2004. At the center of this dramatic growth are interorganizational information systems (IOS), which are information systems (IS) that facilitate the exchange of products, services and information between firms. Examples of IOS include EDI systems in a supply chain, B2B electronic marketplaces, and ...

Implementation and maintenance of interorganizational systems (IOS) require investments by all the participating firms. Compared with intraorganizational systems, however, there are additional uncertainties and risks. This is because the benefits of IOS investment depend not only on a firm’s own decisions, but also on those of its business partners. Without appropriate levels of investment by a...

Decisions of health care institutions to invest in nursing care are often guided by mixed and conflicting evidence of effects of the investments on organizational function and sustainability. This paper uses new evidence generated through Interdisciplinary Nursing Quality Research Initiative (INQRI)-funded research and published in peer-reviewed journals, to illustrate where the business case f...

comments on related versions. Abstract We provide a general model for comparing stepwise and lumpy investments, considering stage specific volatilities, drifts and possibility of project failure. Stepwise investments allow for interim project value realizations, instead of considering only a final project value as in sequential investments. We conceive of an environment in which stepwise invest...