“Electronic Economics of Scope:  Investigating Synergies from Procuring and Selling on the Web,” The Journal of Computer Information Systems, Vol. XXXXI, No. 1, Fall 2000 (Whitten and Ellis).




Information Technology (IT) investments have increased at a rapid pace in recent years, partly due to the growth in electronic commerce (e-commerce). As firms begin to invest more financial resources in IT and consequently expand their e-commerce activities, it becomes more important to study the relationships that exist between these investments and the types of e-commerce activities these firms undertake. This research explores the impact of buying and/or selling on the World Wide Web on various IT-related variables. Synergies are found to exist that indicate firms undertaking substantial IT investment should both buy and sell on the web to realize greater benefit from their investment dollars.