E-commerce value creation and destruction: a resource-based, supply chain perspective

  • Authors:
  • Christopher W. Craighead;Neal G. Shaw

  • Affiliations:
  • University of North Carolina-Charlotte;Texas Christian University

  • Venue:
  • ACM SIGMIS Database
  • Year:
  • 2003

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Abstract

Although researchers have proposed a number of business models for organizations to use in managing electronic commerce applications, very few of these models have been able to produce value consistently for the adopting organizations. We argue that the failure of these business models is largely due to the fact that (1) they do not consider the effects of both direct and indirect value to the firm, (2) they do not view the supply chain as a macro level entity that must be managed just as organizations are managed, and (3) they do not consider the effects of interdependencies among firms in a given supply chain.As a first step in addressing the shortcomings of existing electronic commerce business models, we propose an integrated model of electronic commerce in the supply chain based upon a resource-based view of a firm. The new business model demonstrates that information technology can be used to add value to the final consumer by adding both direct and indirect value at multiple points in a supply chain. The model is used to derive static and dynamic business rules for the management of electronic commerce in the supply chain among multiple business partners. Finally, implications of the business model for researchers and practitioners are discussed.