Physical Sciences and Mathematics Commons^™

Business Network-Based Value Creation In Electronic Commerce, Robert John Kauffman, Ting Li, Eric Van Heck

Research Collection School Of Computing and Information Systems

Information technologies (IT) have affected economic activities within and beyond the boundaries of the firm, changing the face of e-commerce. This article explores the circumstances under which value is created in business networks made possible by IT. Business networks combine the capabilities of multiple firms to produce and deliver products and services that none of them could more economically produce on its own and for which there is demand in the market. We call this business network-based value creation. We apply economic theory to explain the conditions under which business networks will exist and are able to sustain their value-producing …