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Information Systems Failure and Adoption of Internet-based After-sales Services in a Business-to-business Context Authors: Ulrika Mollstedt and Odd Fredriksson

Ulrika Mollstedt Division for Information Technology Department of Information Systems Karlstad University S-651 88 Karlstad Sweden E-mail: [email protected] Phone: +46 54 7001667 Fax: +46 54 7001446

Odd Fredriksson Division for Information Technology Department of Information Systems Karlstad University S-651 88 Karlstad Sweden E-mail: [email protected] Phone: +46 54 7002126 Fax: +46 54 7001446

Information Systems Failure and Adoption of Internet-based After-sales Services in a Business-to-business Context Abstract A Swedish paper machine producer has launched an Internet-based after-sales service to its customers. Even though the development process was considered to be successful, the degree of usage of the Internet-based after-sales service has been low. Taking a stand-point in information systems (IS) failure literature; we claim that an inter-organizational relationship perspective must be taken. Furthermore, this paper identifies four inter-organizational IS failure types in the paper machine producer case. The most important IS failure types identified are the problem to meet customers’ needs regarding the product, communication with the supplier, not sufficient top management support and organizational changes at the supplier.

Keywords Internet-based after-sales service, information systems failure, business-to-business relationship.

Introduction Well-functioning after-sales services are becoming more and more important for firms. Today, one increasingly important channel for business-to-business after-sales services is the Internet. The objective of supporting services, for example after-sales services, for the supplier is often to add value to a physical product (Grönroos 2000). Customer support, e.g. in the form of after-sales services, can provide a competitive advantage (Goffin & New 2001) and be a means for the firm to differentiate itself from its competitors (Van der Veeken & Rutten 1998). Often, a new innovation is considered to be a good thing since a new idea aims to be useful, profitable, constructive or solve a problem. However, a new idea that is not useful could instead be considered to be a mistake (Kimberly 1981; Van de Ven 1986). A Swedish paper machine producer, Metso Paper Karlstad, has developed an Internet-based after-sales service for its customers. Metso Paper Karlstad’s initial idea behind its SymBelt e-Business development project is to create a Web site, named the SymBelt Customer Center (SCC), with customer focus. In other words, it is intended to create added value for the customer through helping it with 2

operations, maintenance, development and troubleshooting when working with the SymBelt Shoe Press Roll, a critical component of the paper machine. The customer’s self-service work is also intended to create added value for the supplier Metso Paper Karlstad by contributing to making its operations more efficient and effective. This Internet-based after-sales service, which contains various information about the SymBelt Shoe Press Roll, has been tested by six pilot customer firms. Even though most of the pilot customers have had an influence on the system development process and perceive the usability to be good or reasonably good, there are, to date, few adoptions made of this Internet-based after-sales service. Not surprisingly at all, the CEO of the focal paper machine supplier stresses the critical importance of the firm’s interaction with its customers. Given this situation, the CEO is interested in finding out the customers’ rationales for adopting or not adopting this Internet-based after-sales service. The research question of this paper is: What factors can lead to a low adoption degree of Internet-based after-sales services in a business-tobusiness context? In this paper, a major focus therefore will be to identify failure types as regards the adoption of an Internet-based after-sales service. In order to answer the research question, we take a stand-point in Lyytinen’s and Hirschheim’s (1987) work on a classification of information systems (IS) failures. They classify IS failures in categories, domains and types, a classification which we do not only apply, but also suggest to extend with an inter-organizational domain and a number of failure types in this paper. One key factor that will be focused on is the customer-perceived value. Liljander et al. (2002) argue that there is a lack of studies of the perceived value of online supplementary services, which are offered by goods producing firms. In the business-to-business context, where mutual benefits often are required (Fredriksson 2001), we argue that it is relevant to apply a relationship perspective when inter-organizational Internet-based after-sales services are studied. To apply a relationship perspective is really the obvious primary unit of analysis in order to understand the adoption and use of Internet-based after-sales services. It is therefore surprising that a clear majority of research studies in the inter-organizational systems area apply an actor perspective, which is to say that only one of the two parties’ viewpoints is considered on a more profound basis. Kurnia and Johnston (2000) point out that adoption of an interorganizational system is a complex endeavour since the system cross over firm boundaries. Moreover, the technology adoption of one firm is influenced by complex interactions with other firms in the supply chain and industry. The field of Internet-based after-sales services is still a quite unexplored field. Not least in interorganizational settings where the Internet-based after-sales service is built around a critical and expensive component of a firm’s production process. Furthermore, the context of the study concerns a business-to-business context characterized by strong relationships between stakeholders at the customers’ firms and the supplier. After a short description of the methodology applied in this study, we present the field of IS failure. The latter is divided into three sections: IS failure categories, IS failure domains and inter-organizational IS failure types, to a high degree inspired by the work of Lyytinen and Hirschheim (1987). The paper ends with discussion and conclusions.

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Methodology This study is an interpretative case study (Walsham 1993) which took place between 2002 and 2004. According to Walsham (1993:4-5), interpretive methods of research in information systems are: “aimed at producing an understanding of the context of the information system, and the process whereby the information system influences and is influenced by the context.” The study started in the spring of 2002 with examining some of Metso Paper Karlstad’s Swedish pilot customers’ expectations of the SCC. The longitudinal study focused on three pilot customer firms through their implementation process and their usage of the Internet-based after-sales service. They have been interviewed three times about their perceptions of the Internet-based after-sales service: before it was introduced, during the test phase and then during the use phase. The interviewed representatives for the three Swedish pilot customers work at the operations or maintenance departments at the mills. Personal interviews have been conducted with two to four respondents at the mills on three occasions. The topic-centered interviews (Mason 1996) primarily contained questions about the pilot customers’ expectations about value and quality regarding the SCC. They have also been asked about their interaction with Metso Paper Karlstad and if they believe that the SCC will have any effects or not on their relationships with the service supplier. The pilot customers started to test the SCC in the spring of 2003. At that time the pilot customers had used the SCC for approximately one month. Their expectations on the areas mentioned above, were followed up in interviews conducted in the summer of 2003. In 2004, when the pilot customers and personnel at Metso Paper Karlstad had used the SCC for approximately a year, their perceptions about the usage of the Internet-based after-sales services and its effects have been collected. During the same period of time, interviews with various personnel at Metso Paper Karlstad have been conducted. Stakeholders interviewed at Metso Paper Karlstad have been the project leader of the SCC development project, personnel at functions such as service, IT, and top management. In our interviews with personnel at Metso Paper Karlstad, we have asked the respondents about their concerns and perceptions regarding the Internet-based after-sales services SCC.

IS failure IS failure categories Lyytinen and Hirschheim (1987) propose a classification of the empirical literature on information systems failure. They claim that most studies of IS failure are based on a failure concept that is not really articulated. Furthermore, most studies on IS failure lack the multiplicity of reasons for failures. According to Lyytinen and Hirschheim (1987, p. 261):

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“IS failure occur when outcomes that would coincide with adopted values are not obtained, i.e. some goal is not achieved or performance is below standard.” Furthermore, they state that there are no ‘general’ IS failures, but an IS failure concerns a problem for members of a specific stakeholder group. Moreover, Lyytinen and Hirschheim (1987) propose that literature on IS failure can be classified according to the way the notion of failure is defined. They mean that there are four major categories: correspondence failure, process failure, interaction failure, and expectation failure. These will be presented below and discussed regarding the empirical case of Metso Paper Karlstad and some of its SCC pilot customers. Correspondence failure typically expresses management’s view of IS failure. Correspondence failure is the most popular notion of IS failure, according to Lyytinen and Hirschheim (1987). Its foundation is that design objectives are stated in advance and if these are not met, the IS is a failure. After that the pilot customers have had access to the SCC for more than a year, personnel at the supplier Metso Paper Karlstad agree that they had wanted to see that the pilot customers used the Internet-based after-sales service to a higher degree. The interaction between the supplier firm and its customers has been very low and the customers’ use of the Forum (a service where customers can share experiences with the supplier and other mills) has been non-existing. In addition, only a few customers have signed up for the SCC. Process failure concerns two different kinds of problems. The first is that a planned information system is not workable at all, often due to difficulties or irresolvable problems in designing, implementing or configuring the IS. Other problems concern that the IS cannot be produced within the given budget or time schedule. Furthermore, this overspending leads to limitation of the benefits of the system. The launch of the SCC was delayed for about a year. The project’s financial budget, on the other hand, was not exceeded. The customers did not seem to be concerned by the relatively extensive delay much. Interaction failure deals with the idea that a low level of use of an IS can be considered to be the same as an IS failure. Studies in this field concern user’s interaction with IS, user attitudes and user satisfaction. It implies that if the user uses the IS to a high degree in the way the system is intended to be used, s/he is satisfied with it, attitudes are positive and the task performance is improved. However, Lyytinen and Hirschheim (1987) point out that there is little empirical evidence that supports the notion that intense IS use correlates with high user satisfaction and improved task performance. The pilot customers’ representatives have been positive to the SCC from the very start of the development project and throughout it. Despite this fact, the degree of use of the Internet-based after-sales service is low. We will return to interaction failure later in this paper. Expectation failure is the fourth category that is put forward by Lyytinen and Hirschheim (1987). They argue that stakeholders’ interests are formulated through a number of expectations, that is the beliefs and desires on how the IS will serve the group’s interest. They suggest (p. 263) that information system failure is the: “inability of an IS to meet a specific stakeholder group’s expectations.” 5

After the tests and one year of use of the SCC the pilot customers’ representatives state that their expectations of the Internet-based after-sales services are fulfilled. However, bearing in mind the functions of the SCC that they in 2002 expected to be valuable, the initial expectations are not fulfilled. One example is that the documented history of matters was expected to be very useful to the pilot customers. Up until today, however, there have not been many reported matters in this function of the SCC. Most likely, this is due to the fact that there have not been many matters to report at all. After one year of infrequent use of the Internet-based after-sales services, some functions are perceived to be valuable to the pilot customers. The most valuable function to date seems to be the access to drawings-function. Training material, e.g. on how to change a belt, is also perceived to be valuable. Furthermore, in 2002 some pilot customers said that they thought that the SCC would be valuable to provide “the right” contact net. The empirical study shows that personnel at the mills still use their old contacts at the supplier. When the pilot customers’ representatives expressed their expectations of the SCC’s impact on the interaction between themselves and the supplier, some were more positive to contacts through this Internet-based after-sales service than others. When the pilot customers had used the SCC for about a year not much contact had been taken through the Internet-based after-sales services. In the spring of 2004, one pilot customer expressed that since he has the phone numbers to personnel at Metso Paper Karlstad in his head, he can easily make a phone call when he has a question. Furthermore, this is facilitated by the fact that he has a portable phone so obviously, he can call from any place at the own mill.

IS failure domains Loomba (1996) points out that after-sales customer service is becoming more vital for firms in order to win orders and also becoming more important as a research priority. Loomba argues that in order for firms to compete effectively in the market today, they need to re-evaluate their existing distribution and after-sales support channels, and make adjustments when necessary. Armistead and Clark (1992, p. 5), state: “Good customer service and support ensure that the customer gets maximum value from the purchase. It would be sad if a customer spent a significant amount on a product, only to use a small percentage of its facilities or potential”, and continuous: “Good customer service and support should enable customers quickly and easily to experience full utility from the purchase. Customer service and support demands must be considered throughout the business cycle from the earliest design stage through providing clear documentation and easy access to advice.” There are several advantages with customer support, also referred to as product support, aftersales service, technical support or simply service. Manufacturers can achieve customer satisfaction and fruitful long-term relationships. In addition, customer support can provide a competitive advantage and play a role in increasing the success rate of new products (Goffin & New 2001).

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One of the messages of the Interaction Approach model (The IMP Group 1982) is that the process of interaction between firms will depend upon the elements of interaction and the characteristics of the parties involved (Ford 1998). Thus, both the inter-organizational level as well as the boundary-crossing inter-personal level are considered to be of importance. The individuals involved in the key inter-organizational business processes are particularly important since they exchange important information and often develop strong personal bonds with each other, which might influence on the decisions of each firm (The IMP Group 1982). More specifically, the maintenance of service relationships in the business-to-business context is a complex process as shown by Bolton et al. (2003). In their study they found that social bonds created through employee-delivered services can be even stronger than the structural bonds in place. Holmlund and Törnroos (1997) present three dimensions that focus on different aspects or factors of a relationship in a business network. These dimensions are structural, economic and social aspects of a relationship. The structural dimension relates to visible aspects of relationships as they represent activity patterns and the flow of goods that takes place between firms. The second economic dimension of relationships contains investments and economic bonds. The social dimension of relationships has to with how people in firms interact with each other over time, pivotal social concepts are: commitment, trust, atmosphere, attraction and social bonds. These have to do with the behavior and perceptions of the people involved in the relationship. Holmlund and Törnroos (1997) point out that communication is part of all three dimensions and is a connector between them and bring them together. Contrary to previous studies on information technology and communication, Olesen and Myers (1999) draw the conclusion that the use of a groupware does not necessarily mean dramatic improvements in communication and collaborative activities. They emphasis that it is important to understand the use of a groupware in its social context and not only rely on the results of laboratory experiments. Ravald and Grönroos (1996) suggest that customer-perceived value has to be related to different personal values, needs and preferences. Furthermore, they discuss the concept of value and relationship marketing. The focus of marketing for firms is shifting from the activity of attracting customers to activities with an emphasis to keep and take care of the existing ones. The core of relationship marketing is relationships, and specifically maintenance of relationships between a firm and its surrounding actors, i. e. suppliers, the public and the customer. In relationship marketing, the central idea is to create customer loyalty so that a stable and long-term relationship, which is profitable for both parts, is enhanced. Value is regarded as an important part of relationship marketing and the ability from a firm to provide excellent value to its customers is considered to be an important strategy for competitive advantage. By adding more value to the core product, e.g. the quality of the product is improved or services are added, firms try to improve customer satisfaction and strengthen the relationship bonds (Ravald & Grönroos 1996). Perceived value is a difficult concept since it is hard to define and measure (Zeithaml 1988; McDougall & Levesque 2000). Broadly defined, perceived value is the results or benefits customers receive in relation to the total costs. In other words, it is the difference between perceived benefits and perceived costs (McDougall & Levesque 2000). According to Zeithaml (1988), customer-perceived value is the consumer’s overall assessment of the utility of a product based on a perception of what is received and what is given. This can vary between people but also from occasion to occasion for the same person (Zeithaml 1988). Caruana et al. (2000, p. 1339) state: 7

“value is seen to be more individualistic and personal than quality and involves both a give and get component.” Bussen and Myers (1997) suggest a broad contextual approach including social, cultural, political and economic perspectives when studying the issue of IS failure. According to their case study, one explanation for IS failure is the importance of the system to provide added value compared to what the previous system did. Another conclusion they draw regarding reasons for IS failure is that a long time delay can damage the success of an information system. If the implementation of the information system takes too long time there is a great risk that enthusiasm dies among the staff. Furthermore, Bussen and Myers (1997) mean that the speed of delivering a prototype to the intended users is important in order for them to understand how the information system can assist them. A recent study presented by Baccarini et al. (2004) concludes that the two highest ranked risks in information technology projects, both in literature and in their conducted survey, were ‘personnel shortfalls’ and ‘unrealistic schedule and budget’. The first risk concerns the inability to complete work due to insufficient staff. Also, three other risks were evident: (1) unrealistic expectations, (2) incomplete requirements, and (3) diminished window of opportunity due to late delivery of software. Out of the 27 risks that Baccarini et al. (2004) identified in the literature ‘lack of executive support’ was by the respondents regarded to be a risk in the middle. This risk regards, for example, that users may not support the project if they perceive that there is a lack of toplevel management sponsorship. Baccarini et al. (2004) point out that out of product processes and project management processes within a project, the latter is more important. The observation that most software problems are of a managerial, organizational or behavioural nature, not technical, is also made by Hartman and Ashrafi (2002). Also emphasizing a broad approach, Allen et al. (2000:21) state: “the efficacy of the terms of exchange and the degree to which participants mutually benefit through electronic interaction is determined by the complex interplay of a number of relational and organizational factors.” In their study of an electronic commerce trading community, the use of the electronic information system was minimal, despite the fact that a lot of firms had access to the system. Allen et al. (2000) found that the stakeholders found the information system excellent on the technical level. However, the criticism and concerns were centered on usage, management and training issues. Kimberly (1981) pointed out that while a lot of research had been done in the fields of implementation and utilization of an innovation, almost no work at that point in time had been done on exnovation. Exnovation means the removal of an innovation from an organization and (p. 91): “occurs when an organization divests itself of an innovation from an organization.” There could be several causes for an innovation to be exnovated and depends on why an organization originally adopted an innovation. Firstly, an innovation may be exnovated when a newer innovation replaces the old one. Secondly, an adopted innovation may not perform well 8

enough to justify its continued use. Other reasons for exnovation concern changing executive priorities and changing patterns of adoption behaviour in other organizations. In the private sector, exnovation of an innovation could also be driven by fluctuations in economic activity. Internal opposition to an innovation to existing interests, power and control, could also be a reason for exnovation. Lyytinen and Hirschheim (1987) propose four domains of IS failure assessment: the technical domain, the data domain, the user domain, and the organizational domain. These domains, that are interrelated and form a layered structure (see Figure 1) interact and are under constant change. When the interactions between the four domains are relatively fixed, the authors speak of ‘IS use’. When they are under a change process, they speak of ‘IS development’. Considering the importance of the inter-organizational level, we propose an extension of Lyytinen’s and Hirschheim’s four domains of IS failure assessment, to include a fifth inter-organizational domain (Figure 1).

Inter-organizational domain Organizational domain User domain Data domain Technical domain

Figure 1 Five domains of IS failure assessment (Modified from Four domains of IS failure assessment, Lyytinen & Hirschheim, “Information systems failures – a survey and classification of the empirical literature”, Oxford Surveys in Information Technology, Oxford University Press, UK, 1987, Vol. 4, p. 275)

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Inter-organizational IS failure types Lyytinen and Hirschheim (1987) mean that within each of these domains, there are a number of IS development and a number of use failure types, as presented in Table 1 below. In addition, there is domain ‘interference failures’, problems that may arise because the domains interact in the IS. They can take place within IS development or in IS use. Furthermore, a domain is the ‘development process failures’. It deals with stakeholders’ concerns over the development process in relation to organizational arrangements and processes.

Table 1 IS failure types (Lyytinen & Hirschheim, “Information systems failures – a survey and classification of the empirical literature”, Oxford Surveys in Information Technology, Oxford University Press, UK, 1987, Vol. 4, p. 276)

Domain covered

Development failures

Use failures

Technical domain

technolgy problems

technical and operational problems

Data domain

view of data

data problems

User domain

view of user

conceptual problems; job satisfaction

Organizational domain

view of organization

organizational problems

Interference problems

goal problems; complexity problems

complexity of use; complexity of maintenance

Development process problems

communication problems; control problems; view of ISD process

We have suggested the extension of Lyytinen’s and Hirschheim’s (1987) framework with an inter-organizational IS failure domain. Consequently, the next step of our study is to identify inter-organizational IS failure types that can explain the low adoption degree of Internet-based after-sales services in a business-to-business context. As the information systems development process of the SCC was considered to be successful (Klarström & Twedmark 2004), we focus on implementation and usage issues, and do not deal with the development process. In order to

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identify inter-organizational IS failure types, we analyse our conducted interviews with the pilot customers and personnel at the supplier by relating them to previous research on IS failure below.

1. Delay of the Internet-based after-sales services Previous research has shown that a long time delay can damage the success of an information system. Bussen and Myers (1997) mean that if the implementation of the information system takes a long time there is a major risk that it affects the staff and potential users in a negative way. The launch of the SCC was delayed for approximately a year. The delay was due to the parallel development project of a portal platform that the Internet-based after-sales services were supposed to be a part of. The old platform was planned to be exchanged for a new one with higher development potentials. However, the platform supplier failed and then this project was discontinued for an indefinite period of time. The planned replacement caused the delays. Perhaps a bit surprisingly, the interviewed customers of Metso Paper Karlstad were not very critical of the long delay of the SCC launch. However, some of them expressed that the information from Metso Paper Karlstad about the reasons for the delay could have been better.

2. The needs of the users at the customer firms – the product Lyytinen and Hirschheim (1987) state that the IS failure category ‘Interaction failure’ deals with the idea that a low level of use of an IS can be considered the same as IS failure. The pilot customers express that the SCC could be useful to them when there is some kind of problem with the SymBelt Shoe Press Roll. Therefore, when the pilot customers express their opinions on the value they perceive from using the SCC, one important aspect to consider is how very few problems there have been with the SymBelt Shoe Press Roll at the mills. The SymBelt Shoe Press Roll is a quite new paper machine part and there are so far almost no problems at all with it. One respondent expresses it in this way: “You do not care about a machine that works.” The pilot customers’ representatives mean that it is positive when they do not have to use the SCC, since it is a proof of that this part of the paper machine works well. The respondents say that they will use the SCC very seldom as they will not use it when the SymBelt Shoe Press Roll works well. Two of the respondents think that at their mill it can take several months between the use occasions of the SCC. As the component gets older, the number of problems is likely to rise; consequently the use of the SCC then will be more valuable. In addition, the pilot customers request more functions than is already available within the SCC. One function that two of the pilot customer representatives would like to see in the SCC is all news regarding the SymBelt Shoe Press Roll. Also, respondents lack systematic information on paper machine parts, etc., from the supplier. On a larger scale the pilot customers’ representatives would like to see that the SCC was developed to include all parts of the paper machine, not only the SymBelt Shoe Press Roll. They mean that such an Internet-based after-sales service would be more valuable to them and then they would use it more frequently.

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3. The needs of the users at the customer firms – the communication and interaction with the supplier In 2002, before the tests and use of the SCC, the pilot customers stated that they usually communicate with personnel at the supplier by phone or e-mail. The telephone was most often used. Two years later, after the launch of the SymBelt Customer Center, they still used the same communication ways to contact the supplier. In other words, the existence of SCC has not changed the customers’ interaction patterns with Metso Paper Karlstad at all. This conclusion supports Olesen and Myers’ (1999) study where they came to the conclusion that the use of a groupware does not inevitably mean remarkable improvements in communication. Furthermore, according to Bussen and Myers (1997), one explanation for not using an information system is that the way the old system works is perceived to be equally valuable. This also seems to be the case for Metso Paper Karlstad’s pilot customers. This study shows that many times the customers prefer to talk over the phone to the personnel at the supplier. Quite often, they not only talk about business, but also about private matters.

4. Top management support and organizational changes at the supplier Baccarini et al. (2004) found that the risk ranked highest in information technology projects, both in literature and in their conducted survey, was ‘personnel shortfalls’. It concerns the inability to complete work due to insufficient staff. In the case of Metso Paper Karlstad two important members of staff involved in the development work of the SCC disappeared from the project for different reasons; the Business Development Manager who came up with the idea of the SCC left the firm and the project leader went on maternity leave. Software problems are often of a managerial, organizational or behavioural nature (Baccarini et al. 2004; Hartman & Ashrafi 2002). In the supplier’s case, the Business Development Manager’s absence could mean that the SCC project did not have the same sponsorship from and interaction with the top management in the firm as previously. At the same time, the mother firm was cutting back on the IT expenses. One respondent at the pilot customers also pointed out that he did not remember that he had received any information about how the project was driven while the project leader was away. He also stated that he did not know what ambitions the supplier had on a short and long run with the SCC. The customers’ lack of a clear picture of the SCC organization of the supplier firm was emphasized by the pilot customers who after the launching of the SCC, did not really know who was involved in the organization on the Internet-based after-sales services (SCC). This can also be explained by the fact that there in recent years has been a significant down-sizing and reorganizational work going on at Metso Paper Karlstad. In both those processes of changes, personnel have got new working tasks and some have been made redundant.

Discussion and conclusions Despite a successful information systems development work with involvement of pilot customers, the customers overall perceive the value of the Internet-based after-sales services to

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be fairly low. Neither has the interest for the specific IS been high by potential customers. All four major IS failure categories; correspondence failure, process failure, interaction failure, and expectation failure, proposed by Lyytinen and Hirschheim (1987), have been identified in this case. However, the category of process failure, also identified as the first IS failure type ‘Delay of the Internet-based after-sales services’ does not seem exceptionally relevant, as the interviewed customers did not really comply with that the launch of the SCC was delayed for about a year. This finding, which is not in line with the result of Bussen and Myers’ (1997) study, should be considered in light of the perceptions on value of the SCC as expressed by the pilot customers. The most important factor for the low degree of use of the SCC seems to be that the interviewed customers do not perceive the Internet-based after-sales services to be valuable enough. In this study we identified two IS failure types regarding the needs of the customer firms, one regarding the product that the SCC supports and the other regarding the communication and interaction with the supplier. The pilot customers do not see any advantages in form of utility or benefits of using the Internet-based after-sales service (Zeithaml 1988; McDougall & Levesque 2000). The low problem rate with the product of the SymBelt Shoe Press Roll and already well-working routines in the interaction with the supplier are important inter-organizational failure types of the use of an Internet-based after-sales service identified in this study. Supporting the study of Baccarini et al. (2004), personnel shortfalls of important people in the project at the supplier has also proved to be significant for IS failure in this study. In addition, the support from top management and organizational personnel changes at the supplier firm, are also important for IS failure. In this business-to-business study, support from top management seems to be more important than in the study presented by Baccarini et al. (2004). Good customer support on existing and new products is becoming an increasingly important issue for firms (Armistead & Clark 1992; Goffin & New 2001). The importance for firms to look over their existing distribution and after-sales support channels and make adjustments when necessary is emphasized by Loomba (1996). A new after-sales support channel can be regarded as an innovation. Often an innovation is considered to be a good thing, but when an innovation is removed from a firm, Kimberly (1981) labels this process exnovation. Considering the low degree of use of the SCC during the first year, it might be in the risk zone of becoming an exnovation. Neither has the Internet-based after-sales services proved to more valuable than the existing working routines around the SymBelt Shoe Press Roll. Also the non-success can be said to be a result of draw-backs on personnel in the supplier company, which in turn, is caused by the exnovation risk of fluctuations in the firm’s economic activity. This study has proved the importance of an inter-organizational domain unit of analysis when studying inter-organizational information systems failure in a business-to-business context. From the inter-organizational IS failure types identified in the empirical study and presented in this paper, we argue that it is obvious and crucial that the inter-organizational domain of IS failure types should be added to the ones proposed by Lyytinen and Hirschheim (see Table 1). This study has dealt with the issue of adoption of an inter-organizational Internet-based after-sales service. In future research, it would be interesting to study IS failure types regarding other kinds of inter-organizational information systems, for example business-to-business enterprise resource systems.

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