Outsourcing of services is usually viewed as a way to increase or decrease capacity at themargin. By outsourcing a firm can vary its ability to provide goods or services such asinformation technology (IT) processing capacity or applications development, withouttaking on the long term commitment...

This paper examines how firms use the Internet and the emerging quot;globalinfostructurequot; to improve key processes and competitive capabilities. Itproposes the widespread diffusion of the emerging quot;infostructurequot; willdramatically reduce transaction costs, leading to growth in...