Information Technology and Boundary of the Firm: Evidence from Plant-Level Data

It has long been believed that information technology (IT) has the potential to shift the boundaries surrounding where production takes place. Specifically, networked IT INVESTMENTS are supposed to reduce costs of monitoring behavior of internal and external partners, thereby improving incentives and reducing the risk of opportunistic behavior. Networked IT can also reduce costs of coordinating economic activity within and between firms.

Website:  http://www.arjonline.org/engineering/american-research-journal-of-computer-science-and-information-technology/