A model of competing interorganizational systems and its application to airline reservation systems

Interorganizational systems (IOS) are automated information systems that cross company boundaries. This article presents a descriptive model of competition between providers of interorganizational systems in a mature market. The model emphasizes the competitive role of switching costs in conjunction with user benefit functions which increase with the number of users. Also introduced is a notion of competitive position which aids in describing competitive risks and opportunities in a market. The case of airline computerized reservation systems (CRS) is used throughout the paper to demonstrate the model.