Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Strategy, IT and control @ eBay, 1995-2005

Strategy, IT and control @ eBay, 1995-2005 Purpose – This paper aims to adapt Simons’ (1995b) theory of the role of information technology (IT) in shaping and facilitating the levers of control (i.e. the Levers of Control Applied to Information Technology – LOCaIT) as a framework for investigating how eBay’s business strategy was realized through its management control system (MCS) in the first 10 years of the online auction market. Design and method – The qualitative method uses data from public record interviews, teaching cases, books, Securities and Exchange Commission filings and other archival sources to longitudinally trace the realization of eBay’s strategy through its MCS and IT. Findings – Realizing its strategy through the eBay MCS necessitated a diagnostic control system unlike any previously seen. This system created a close-knit online community and enabled buyers and sellers to monitor one another’s performance and trustworthiness. Research limitations and implications – The LOCaIT theory facilitated understanding the core aspects of the realization of eBay’s strategy through its MCS and IT. However, LOCaIT largely omits the strong linkages evident among elements of the MCS, the importance and necessity of building a core IT infrastructure to support eBay’s strategy and the central role of building consumer trust in the realization of this strategy. Practical and social implications – eBay’s MCS is now, perhaps, the world’s most widely imitated model for creating online trust and user interactions (e.g. Yelp, TripAdvisor, Amazon). In addition, eBay’s MCS was “sold” as a consumer product that was instrumental in facilitating consumer trust in the online auction market. Originality/value – Contributions include: tracing the creation, growth and evolution of, perhaps, the world’s largest and most widely imitated MCS, which redefined the boundaries of accounting systems monitoring; and testing the range, usefulness and limitations of Simons’ LOCaIT theory as a lens for understanding eBay’s use of IT in their MCS. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Qualitative Research in Accounting & Management Emerald Publishing

Loading next page...
 
/lp/emerald-publishing/strategy-it-and-control-ebay-1995-2005-NHagIdw03i
Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
1176-6093
DOI
10.1108/QRAM-06-2013-0025
Publisher site
See Article on Publisher Site

Abstract

Purpose – This paper aims to adapt Simons’ (1995b) theory of the role of information technology (IT) in shaping and facilitating the levers of control (i.e. the Levers of Control Applied to Information Technology – LOCaIT) as a framework for investigating how eBay’s business strategy was realized through its management control system (MCS) in the first 10 years of the online auction market. Design and method – The qualitative method uses data from public record interviews, teaching cases, books, Securities and Exchange Commission filings and other archival sources to longitudinally trace the realization of eBay’s strategy through its MCS and IT. Findings – Realizing its strategy through the eBay MCS necessitated a diagnostic control system unlike any previously seen. This system created a close-knit online community and enabled buyers and sellers to monitor one another’s performance and trustworthiness. Research limitations and implications – The LOCaIT theory facilitated understanding the core aspects of the realization of eBay’s strategy through its MCS and IT. However, LOCaIT largely omits the strong linkages evident among elements of the MCS, the importance and necessity of building a core IT infrastructure to support eBay’s strategy and the central role of building consumer trust in the realization of this strategy. Practical and social implications – eBay’s MCS is now, perhaps, the world’s most widely imitated model for creating online trust and user interactions (e.g. Yelp, TripAdvisor, Amazon). In addition, eBay’s MCS was “sold” as a consumer product that was instrumental in facilitating consumer trust in the online auction market. Originality/value – Contributions include: tracing the creation, growth and evolution of, perhaps, the world’s largest and most widely imitated MCS, which redefined the boundaries of accounting systems monitoring; and testing the range, usefulness and limitations of Simons’ LOCaIT theory as a lens for understanding eBay’s use of IT in their MCS.

Journal

Qualitative Research in Accounting & ManagementEmerald Publishing

Published: Nov 11, 2014

There are no references for this article.