xxx Section Two, Development and Design Methodologies, contains in-depth coverage of conceptual architectures and frameworks, providing the reader with a comprehensive understanding of emerging theoretical and conceptual developments within the development and utilization of electronic business. ³(%XVLQHVV3ODQQLQJDQG$QDO\VLV)UDPHZRUN´E\%HQ&OHJJDQG%RRQ7DQUHSRUWVRQDIUDPHZRUN that has been successfully used to analyze the e-business capabilities of an organization with a view to GHYHORSLQJWKHLUHFDSDELOLW\PDWXULW\OHYHOV³$&RQWH[W%DVHGDQG3ROLF\'ULYHQ0HWKRGWR'HVLJQ and Develop Composite Web Services,” by Zakaria Maamar and Djamal Benslimane, continues the H[SORUHGHVLJQVWUDWHJLHV³%&)DLOXUHV7RZDUGDQ,QQRYDWLRQ7KHRU\)UDPHZRUN´E\$QLO03DQG\D and Nikhilesh Dholakia provides vital insight in to developing successful frameworks. From chapters VXFKDV³8QGHUVWDQGLQJWKH'HYHORSPHQWRI)UHH(&RPPHUFH(%XVLQHVV6RIWZDUH$5HVRXUFH%DVHG 9LHZ´E\:DOW6FDFFKLDQG³'HVLJQLQJD&50%DVHG(*RYHUQPHQW8VDELOLW\6HUYLFHV)UDPHZRUN ,QWHJUDWLQJ,QWHUQDODQG([WHUQDO&XVWRPHUVLQ3XEOLF6HUYLFHV´E\<L)HQ&KHQWR³'HYHORSLQJDQ 2QOLQH)OHHW0DQDJHPHQW6HUYLFH$OHUW'ULYLQJFRP´E\5RQ&UDLJDQG'HWOHY1LWVFKDQG³'HYHORSLQJ and Delivering Online Courses,” by Manohar Madan, this section covers the broad scope of e-business development and design. Section Three, Tools and Technologies, presents extensive coverage of various tools and technolo- gies and their use in creating and expanding the reaches of electronic business. The unprecedented DGYDQFHPHQWVZLWQHVVHGLQWKH¿HOGRILQIRUPDWLRQDQGFRPPXQLFDWLRQWHFKQRORJ\RYHUWKHODVWFRXSOH of years and their affect the nature and magnitude of B2B interactions and their operational effective- QHVVDQGHI¿FLHQF\LVH[SORUHGLQ³)URP2SHUDWLRQDO'DVKERDUGVWR(EXVLQHVV0XOWLDJHQW)RUPXOD- tion of Electronic Contracts” by Tagelsir Mohamed Gasmelseid. The vital implements of e-business DUHDOVRGLVFXVVHGLQ³(%XVLQHVV&RPPHUFH$JHQWVDQG3D\PHQW6\VWHPV´E\6KHQJ8HL*XDQDQG LQ³$SSOLFDWLRQRI$JHQWEDVH7HFKQRORJ\DV&RRUGLQDWLRQDQG&RRSHUDWLRQLQWKH6XSSO\&KDLQEDVHG e-business” by Golenur Begum Huq and Robyn Lawson. Also discussed in this chapter is the key issue RIVHFXULW\7KURXJKFKDSWHUVVXFKDV³6HFXULW\LQ0RELOH$JHQW6\VWHPV´E\&KXD)DQJ)DQJDQG* 5DGKDPDQL³5),'6\VWHPV$SSOLFDWLRQVYV6HFXULW\DQG3ULYDF\,PSOLFDWLRQV´E\'HQQLV0/:RQJ DQG5DSKDHO&:3KDQDQG³%XVLQHVV&DVHVIRU3ULYDF\(QKDQFLQJ7HFKQRORJLHV´E\5RJHU&ODUNH the technologies and tools required by e-business are thoroughly presented. Section Four, Utilization and Application, investigates the use and implementation of electronic business technologies in a variety of contexts. Small businesses are one important context for this inves- WLJDWLRQDQGWKHFKDSWHUHQWLWOHG³6PDOO%XVLQHVV&ROODERUDWLRQ7KURXJK(OHFWURQLF0DUNHWSODFHV´E\ Yin Leng Tan and Linda Macaulay looks at how e-business can impact the economy worldwide through FROODERUDWLRQ$QRWKHULPSRUWDQWDSSOLFDWLRQRIHEXVLQHVVLVGLVFXVVHGLQ³7KH5ROHRI:HE6LWHVDQG E-Commerce in the Development of Global Start-Ups” by Brychan Thomas, Christopher Miller, Gary 3DFNKDPDQG*HRII6LPPRQV³(%XVLQHVV$GRSWLRQLQ60(V6RPH3UHOLPLQDU\)LQGLQJVIURP(OHF- WURQLF&RPSRQHQWV,QGXVWU\´E\0DUN;X5DYQL5RKDWJLDQG<DQTLQJ'XDQ³$GRSWLRQRI0RELOH Technology in the Supply Chain: An Exploratory Cross-Case Analysis” by Bill Doolin and Eman Al Haj $OLDQG³&DVH6WXG\6HUYLFH2ULHQWHG5HWDLO%XVLQHVV,QIRUPDWLRQ6\VWHP´E\6DP&KXQJ=DFKDU\ Bylin and Sergio Davalos provide real-world examples and analysis vital to implementing successful EXVLQHVVVWUDWHJ\DQGIRUUHVHDUFKHUVDWWHPSWLQJWRH[SDQGWKH¿HOG2YHUDOOWKLVVHFWLRQSURYLGHVWKH ¿UPJURXQGRIH[SHULHQFHDQGUHVHDUFKIRUUHDGHUVZKRZLVKWRQDYLJDWHWKURXJKWKHPDQ\G\QDPLF applications of e-business. Section Five, Organizational and Social Implications, includes a wide range of research pertain- ing to the organizational and cultural implications of electronic business. Not least among these impli- FDWLRQVLVWKHVXEMHFWRIWKHFKDSWHU³7HVWLQJ0HDVXULQJDQG'LDJQRVLQJ:HE6LWHVIURPWKH8VHUV¶ Perspective” by Leszek Borzemski, which insightfully considers the tendencies and expectations of xxxi ZHEVLWHXVHUV7KLVWRSLFLVIXUWKHUGHYHORSHGLQWKHFKDSWHU³7KH,QÀXHQFHRIWKH,QWHUQHWRQ5HODWLRQ- ships Between Consumers and Vendors,” by Horst Treiblmaier, which offers practical implications IRUGHVLJQLQJWKHLQWHUDFWLRQSURFHVVZLWKRQOLQHXVHUV7KHFKDSWHUV³6RFLDO,PSOLFDWLRQVRI'LVWDQFH (GXFDWLRQLQ$ODVND´E\%RJGDQ+RDQFDDQG.HQULFN0RFN³6WUDWHJLHVIRU9LUWXDO/HDUQLQJDQG( (QWUHSUHQHXUVKLSLQ+LJKHU(GXFDWLRQ´E\-XKD.HWWXQHQDQG0DXUL.DQWRODDQG³6RFLDO,PSOLFDWLRQV of E-Mentoring: Development of an E-Mentoring Model” by Eddie Blass, Andrew Ettinger and Viki Holton analyze and present the many social implications of e-learning interacting with e-business. ³2UJDQLVDWLRQDO&KDOOHQJHVRI,PSOHPHQWLQJ(%XVLQHVVLQWKH3XEOLF6HUYLFHV7KH&DVHRI%ULWDLQ¶V National Mapping Agency” by Francesca Andreescu, provides yet another real world example of this section’s main concern, understanding the implications, the changes and consequences wrought by the continued emergence of e-business. Section Six, Managerial Impact, presents contemporary coverage of the managerial applications and implications of electronic business. Managerial impact is always a major factor in the success or failure RIEXVLQHVVYHQWXUHVDQGHEXVLQHVVLVQRH[FHSWLRQ7KLVDVSHFWLVH[SORUHGLQFKDSWHUVVXFKDV³&RQ- FHSWVDQG&KDOOHQJHVRI(/HDGHUVKLS´E\7HUHVD7RUUHV&RURQDVDQG0DULR$ULDV2OLYD³(YDOXDWLQJ (%XVLQHVV/HDGHUVKLSDQGLWV/LQNWR)LUP3HUIRUPDQFH´E\-LQJ4XDQDQG³(&50DQG0DQDJHULDO Discretion” by Tim Coltman and Sara Dolnicar which provide both constructive analysis and methods RIHYDOXDWLQJDQGLPSURYLQJPDQDJHULDOWHFKQLTXHV³&RPSHWHQFHRI,QIRUPDWLRQ7HFKQRORJ\3URIHV- VLRQDOVLQ,QWHUQHW%DVHG9HQWXUHV´E\7RELDV.ROOPDQQDQG0DWWKLDV+lVHO³&RQVXPHUV¶3UHIHUHQFHV DQG$WWLWXGHV7RZDUG0RELOH2I¿FH8VH$7HFKQRORJ\7UDGH2II5HVHDUFK$JHQGD´E\;LQ/XRDQG 0HUULOO:DUNHQWLQDQG³7KH3XUFKDVLQJ$JHQW¶V9LHZRI2QOLQH5HYHUVH$XFWLRQV´E\3HJJ\'/HH GHOYHLQWRPRUHVSHFL¿FIDFHWVRIHEXVLQHVVORRNLQJDWQRWRQO\PDQDJHULDODFWLRQVEXWDOVRWKHYDULRXV viewpoints, considerations and experiences of employees, consumers and those actively participating in the e-business experience. Section Seven, Critical Issues, presents readers with an in-depth analysis of the more theoretical and FRQFHSWXDOLVVXHVZLWKLQWKLVJURZLQJ¿HOGRIVWXG\E\DGGUHVVLQJWRSLFVVXFKDVWKHTXDOLW\VHFXULW\ DQGULVNIDFWRUVLQHEXVLQHVV³$7\SRORJ\RI,QWHURUJDQL]DWLRQDO5HODWLRQVKLSV$0DUULDJHD)OLQJ or Something in Between” by Wonyoung Lee, Praveen Aggarwal, Hyonkil Shin, Taihoon Cha, and Seunghan Kim dissects the dynamics and considerations surrounding the parameters of the strategic cooperation in partnerships. Security and privacy are also examined and discussed in chapters such as ³(6HUYLFHV3ULYDF\1HHGV$SSURDFKHV&KDOOHQJHV0RGHOVDQG'LPHQVLRQV´E\2VDPD6KDWD³:HE Services Security in E-Business: Attacks and Countermeasures” by Wei-Chuen Yau and G. S. V. Radha .ULVKQD5DRDQG³$6HFXULW\%OXHSULQWIRU(%XVLQHVV$SSOLFDWLRQV´E\-XQ'XDQG<XDQ<XDQ-LDR 7KLVVHFWLRQDOVRLQFOXGHVDFRPSOHWHGLVFXVVLRQRIULVNPDQDJHPHQWZLWKFKDSWHUVVXFKDV³(OHFWURQLF Risk Management” by Tapen Sinha and Bradly Condon, which highlight this important consideration. In all, this section provides the reader with a complete view of the factors anyone must consider before engaging in electronic business. The concluding section of this authoritative reference tool, Emerging Trends, highlights research SRWHQWLDOZLWKLQWKH¿HOGRIHOHFWURQLFEXVLQHVVZKLOHH[SORULQJXQFKDUWHGDUHDVRIVWXG\IRUWKHDGYDQFH- PHQWRIWKHGLVFLSOLQH³$5RDGPDSIRU$PELHQW(6HUYLFH$SSOLFDWLRQVDQG(PEUDFLQJ0RGHO´E\ <XDQ&KX+ZDQJDQG6RH7V\U<XDQ³$6XUYH\RQ1HXUDO1HWZRUNVLQ$XWRPDWHG1HJRWLDWLRQV´E\ ,RDQQLV3DSDLRDQQRX,RDQQD5RXVVDNLDQG0LOWLDGHV$QDJQRVWRXDQG³3DWWHUQVIRU'HVLJQLQJ$JHQW Based e-Business Systems” by Michael Weiss provide a broad picture of new and developing arenas IRUWKHDSSOLFDWLRQRIHEXVLQHVV³*OREDO7UHQGVRI3D\PHQW6\VWHPVDQGWKH1H[W*HQHUDWLRQ57*6 Project in Japan” by Masaaki Nakajima chronicles the advancements taking place in Japan and closely DQDO\VHVWKH1H[W*HQHUDWLRQ5HDO7LPH*URVV6HWWOHPHQW57*6V\VWHPVIHDWXUHVDQGEHQH¿WV$OVR xxxii discussed are the future trends in topics as diverse as future government regulations, e-health systems, dispute resolution and consumer perception to give any reader cutting-edge knowledge of the electronic business world. Although the contents of this multi-volume book are organized within the preceding eight sections which offer a progression of coverage of important concepts, methodologies, technologies, applications, VRFLDOLVVXHVDQGHPHUJLQJWUHQGVWKHUHDGHUFDQDOVRLGHQWLI\VSHFL¿FFRQWHQWVE\XWLOL]LQJWKHH[WHQVLYH indexing system listed at the end of each volume. Furthermore, to ensure that the scholar, researcher, and educator have access to the entire contents of this multi-volume set, as well as additional coverage that could not be included in the print version of this publication, the publisher will provide unlimited, multi-user electronic access to the online aggregated database of this collection for the life of the edi- tion free of charge when a library purchases a print copy. In addition to providing content not included within the print version, this aggregated database is also continually updated to ensure that the most current research is available to those interested in electronic business. $VHEXVLQHVVSUDFWLFHVEHFRPHPRUHDQGPRUHSUHYDOHQWWKHEHQH¿WVDQGULVNLQYROYHGPXVWEH weighed carefully. Consumers and business associates alike demand that e-business run as smoothly DQGHI¿FLHQWO\DVSRVVLEOHLQRUGHUWRGHOLYHURQWKLVSURPLVHRQHPXVWKDYHDFOHDUYLHZRIQRWRQO\ the soaring possibilities represented but also the risks involved. With this knowledge, on is able to ac- tively participate in the increasingly global, dynamically mobile and ever-expanding world of electronic business. The diverse and comprehensive coverage of e-business in this four-volume, authoritative publica- tion will contribute to a better understanding of all topics, research, and discoveries in this developing, VLJQL¿FDQW¿HOGRIVWXG\)XUWKHUPRUHWKHFRQWULEXWLRQVLQFOXGHGLQWKLVPXOWLYROXPHFROOHFWLRQVHULHV ZLOOEHLQVWUXPHQWDOLQWKHH[SDQVLRQRIWKHERG\RINQRZOHGJHLQWKLVHQRUPRXV¿HOGUHVXOWLQJLQD JUHDWHUXQGHUVWDQGLQJRIWKHIXQGDPHQWDOVZKLOHDOVRIXHOLQJWKHUHVHDUFKLQLWLDWLYHVLQHPHUJLQJ¿HOGV We at Information Science Reference, along with the editor of this collection, hope that this multi-volume collection will become instrumental in the expansion of the discipline and will promote the continued growth of e-business. xxxiii E-Business: Concepts, Methodologies, Tools, Applications, and Future Directions In Lee Western Illinois University, USA ABSTRACT Web-based e-business is becoming increasingly popular. E-business has affected the dynamics of corporate competition, globalization, life style, customer relationship, and technological innovations. New e-busi- ness technologies, standards, and business models are rapidly emerging from different industries. This FKDSWHUH[DPLQHVPDMRUVWXGLHVLQWKHHEXVLQHVV¿HOGGLVFXVVHVFULWLFDOLVVXHVDQGSUHVHQWVHPHUJLQJ trends for future research efforts. INTRODUCTION ,QWKHHDUO\VHEXVLQHVVXVKHUHGLQZKDWLVQRZFDOOHG³WKHGLJLWDOHFRQRP\´,WUHYROXWLRQL]HG the process of buying, selling, and exchanging products and services, and spawned a host of business and technological innovations. As globalization and competition pose new opportunities and challenges, ¿UPVIDFHLQFUHDVHGSUHVVXUHVIURPVWDNHKROGHUVWRFUHDWHHEXVLQHVVYDOXHV7KH\DUHDWWHPSWLQJWR¿QG which e-business models and applications will contribute effectively to their sustainability, growth, and LQQRYDWLRQ,QQRYDWLRQVLQWHFKQRORJ\LQWKHHEXVLQHVVDUHDKDYHFRQVWDQWO\HQFRXUDJHG¿UPVWRLPSURYH existing business processes and develop new business models and applications. Recently, advancements of wireless technologies have extended the reach of e-business to mobile business environments. As a growing number of customers utilize mobile devices to exchange information and to conduct busi- QHVVWUDQVDFWLRQV¿UPVDUHFRPSHWLQJWRSURYLGHWKHPRVWYDOXHDGGHGLQQRYDWLYHFRQYHQLHQWPRELOH VHUYLFHVIRUWKHLUFXVWRPHUV:KLOHODUJH¿UPVKDYHEHHQWKHHDUO\DGRSWHUVDQGEHQH¿FLDULHVRIPRVW e-business innovations, an increasing number of small and medium-sized enterprises (SMEs) are also rapidly adopting e-business to better serve customers, improve productivity, extend a market base, and stay competitive. xxxiv The growth of e-business has been phenomenal in terms of sales volume and the number of corporate and individual adopters. For several years before 2006, growth rates exceeded 25% each year. Forrester forecasted that online sales will continue to grow to $204 billion in 2008 (BuzReport, 2008a). It is ex- pected that in 2009 online sales will reach $235 billion, by 2010 it will reach $267 billion, and by 2012 RQOLQHVDOHVDUHH[SHFWHGWRUHDFKELOOLRQ7KRXJKVWLOOJURZLQJIDVWHUWKDQWKDWRIRIÀLQHVDOHV the growth rate is declining as the market becomes more saturated with online shoppers. Obstacles to online retail sales growth include a social and physical aspect. (EXVLQHVVKDVSURYLGHG¿UPVZLWKQHZZD\VRIDSSURDFKLQJDFTXLULQJDQGUHWDLQLQJFXVWRPHUV 2QWRSRIYDULRXVZHEEDVHGPDUNHWLQJVRXUFHV¿UPVKDYHUHFHQWO\VKRZQVLJQL¿FDQWLQWHUHVWWRRQ- line social networking as a new marketing source. Online social networking services such as MySpace, )DFHERRNDQG/LQNHG,QSURYLGH¿UPVZLWKVLJQL¿FDQWEXVLQHVVEXLOGLQJFRPPXQLWLHVEDVHGRQLQWHUHVWV DQGUHODWLRQVKLSV$FFRUGLQJWRH0DUNHWHUV¿UPVDUHH[SHFWHGWRVSHQGDERXW$1.6 billion in social networking in 2008. That is an increase of 69% from 2007 expense (BuzReport, 2008b). In 2007, 37% of the US adult Internet users and 70% of teens participated in online social networking at least once a month. eMarketer predicted that the number of participants will continue to grow by more than 45% by the year 2011. (EXVLQHVVEURXJKWDERXWDSDUDGLJPVKLIWFDXVHGE\³GLVUXSWLYH´WHFKQRORJ\WKDWLVUDGLFDOO\FKDQJLQJ the traditional way of doing business. The digital economy emerging from the Internet revolution changed WKHUXOHVDQGSULQFLSOHVWUDGLWLRQDOO\KHOGE\EXVLQHVV¿UPV7KHSDUDGLJPVKLIWZDVXQSUHFHGHQWHGLQ WHUPVRIWKHFRPSOH[LW\DQGPDJQLWXGHDQGSUHVVXUHG¿UPVWREHPRUHLQQRYDWLYHDQGSURDFWLYHWR business problems than ever before. Anecdotal evidences of excellent companies such as e-Bay and Amazon.com show that they understand the dynamics of the complex interrelated internal and external forces imposed on the company, develop comprehensive business plans from multi-layered stakehold- ers’ perspectives, and implement the plans at the right time, magnitude, and place. However, in light of the current lack of comprehensive studies in e-business planning and management, an overarching framework is in urgent need to assist e-business managers in analyzing enabling technologies and the success factors when developing e-business plans. Although a large volume of literature is already available on e-business, many new ideas and applica- tions are constantly emerging and provide potential opportunities and challenges for further research. The purposes of this introductory chapter are: (1) to review the literature on e-business using a suitable clas- VL¿FDWLRQVFKHPHDQGORQJLWXGLQDOVWXGLHVWRXQGHUVWDQGZKDWKDVEHHQVWXGLHGDQGZKDWZLOOEHQHHGHG for future research, and (2) to present a framework of e-business research which consists of concepts, methodologies, tools, applications, critical issues, and emerging trends. Our chapter is both descriptive and prescriptive, and intends to stimulate further interest in this area. It will provide a reference source for anyone interested in e-business research and practices. Analyzing E-Business Research Trends 7RXQGHUVWDQGZKDWHEXVLQHVV¿HOGKDVGRQHDQGWRSURMHFWZKHUHLWZLOOEHKHDGLQJMRXUQDODUWLFOHV SXEOLVKHGLQWKHHEXVLQHVV¿HOGKDYHEHHQDQDO\]HGZLWKWKHH[WHQVLYHXVHRIWKH*RRJOH6FKRODUZKLFK is a tool that is used for literature search. To identify high impact research subjects, two key words (e- business and e-commerce) and the citation numbers were used. For example, for journal articles up to 2004, 20 citations were used as the minimum threshold. To take into account the publication timing effect on the article citations, a minimum number of 15 citations was used for the 2005 journal publications; a minimum number of 10 citations was used for the 2006 journal publications; a minimum number of 5 citations was used for the 2007 journal publications. A total of 524 journal articles published in the xxxv HEXVLQHVV¿HOGEHWZHHQDQGZHUHLGHQWL¿HGDQGFDWHJRUL]HGDQGPDMRUUHVHDUFKWKHPHVDQG arguments were summarized. In addition, recent publications included in this volume and select journal publications were also referenced to augment the literature survey. Overall, the review shows that an increasing volume of e-business research has been conducted over time in a diverse range of areas. The published articles were analyzed to develop high-level perspectives WKDWKDYHJXLGHGHEXVLQHVVUHVHDUFK7KHVHDUWLFOHVZHUHFODVVL¿HGDQGUHVXOWVZHUHSUHVHQWHGEDVHGRQ the themes. A comprehensive list of all the articles analyzed can be provided upon request. This paper consists of ten sections: (1) introduction, (2) fundamental concepts and theories in elec- tronic business, (2) electronic business development and design methodologies, (3) electronic business tools and technologies, (4) utilizations and application of electronic business, (5) electronic business of mobile computing, (6) organizational and social implications of electronic business, (7) managerial impact of electronic business, (8) critical issues in electronic business, (9) emerging trends in electronic business, and (10) a conclusion. Table 1 summarizes the themes and research methodologies used by the articles cited in this chapter. FUNDAMENTAL CONCEPTS AND THEORIES IN ELECTRONIC BUSINESS ,QWKLVVHFWLRQZHGH¿QHHEXVLQHVVSUHVHQWWKUHHIXQGDPHQWDOWKHRULHVUHODWHGWRHEXVLQHVVWUDQVDFWLRQ cost economy, agency cost theory, and network externality), and discuss three major types of e-business (B2B, B2C, and C2C). Section Category Theme Research Methodology Fundamental Concepts and Theories Business-to-Business (B2B) E-Commerce Success factors and organiza- tional constraints; Value assessment; E-marketplaces; E-supply chain; Global B2B Framework; Survey; Case study Business-to-Consumer (B2C) E-Commerce Extensions of TAM; SERVQUAL; Trust; E-services Survey, Framework; Lab experiment Consumer-to-Consumer (C2C) E-Commerce Reputation systems; Extensions of TAM; SERVQUAL; Trust; TCA Concept; Survey Electronic Business Develop- ment and Design Methodolo- gies Frameworks for E-Business Applications E-business management frame- work; E-business architecture plan- ning model; E-business infrastructure Concept; System design methods; Framework Design Methodologies for E-Business Applications Devel- opment IT development practices in e-commerce; E-commerce development methodology; Web quality metrics; Requirement engineering for e-services development Survey; System design methods; Framework Table 1. Themes and research methodologies used by the cited articles continued on following page xxxvi Section Category Theme Research Methodology Electronic Business Tools and Technologies Web Technology Standards XML; XBRL Infrastructure; Survey Agent Technologies Agent-mediated e-commerce; Characteristics of e-business agents; Combined Negotiation Support System (CNSS) Survey; Concept; Architecture; Infrastructure Digital Rights Management (DRM) Systems Digital watermarking tech- niques Infrastructure; Algorithms Utilization and Application of Electronic Business Recommender Systems Taxonomy of recommender systems; &ROODERUDWLYH¿OWHULQJ&) Concept; Algorithms Web Personalization Processes of web personaliza- tion; Web personalization tech- niques; Privacy issues Architecture; Algorithms; Infrastructure; Concept Web Mining Web mining techniques; Practical guidelines for web mining usage Concept; Algorithms Organizational Learning and Knowledge Management E-business systems adoption; Use of e-business knowledge Survey, Concept, Framework Mobile Computing Overview of m-commerce; Consumer perception and loyalty on m-commerce; Organizational issues in m- commerce; Cross-cultural study in m-com- merce Concept; Survey; Framework Organizational and Social Implications of Electronic Business Structural Changes in Markets Role of intermediaries Concept; Analytical Inter-Firm Integration Vertical integration; Horizontal integration Concept; Analytical Virtual Communities Virtual community marketing; Community knowledge sharing Concept; Survey; Case study Digital Divide Policymaking; SMEs Concept; Survey; Cybercrime Categories Concept; Analytical Managerial Impact of Elec- tronic Business E-Strategy Strategy development models Framework; Case study Value Creation Opportunities Source of value creation; Opportunity assessment Concept; Framework; Survey Table 1. continued continued on following page xxxvii Table 1. continued Section Category Theme Research Methodology Critical Issues in Electronic Business Privacy and Security Issues Privacy policy and e-commerce adoption Concept; Architecture; Survey Channel Coordination Issues Internal channel coordination; ,QWHU¿UPFKDQQHOFRRUGLQDWLRQ Mobile channel Concept; Analytical; Survey Emerging Trends in Electronic Business Web Services and Semantic Web UDDI search strategy; Composite Web services; Semantic web services Framework; Architecture; Language Web 2.0 &ODVVL¿FDWLRQ Concept; Framework Voice over IP (VoIP) and IP Communications Technology development Concept; Framework Ubiquitous Computing and U- Commerce Computing environment; Technology development Concept 'H¿QLQJ(%XVLQHVV One of the most profound developments of the 1990s was the emergence of the Web. While a number of e-business applications such as electronic data interchange (EDI), electronic funds transfer (EFT), and automatic teller machine (ATM) had existed long before the advent of the Web, e-business by the con- WHPSRUDU\PHDQLQJHPHUJHGZKHQWKH¿UVWZHEEURZVHUFDOOHG³0RVDLF´EHFDPHDYDLODEOHWRWKHJHQHUDO public in 1993. This web browser is the single most important contributor to the widespread use of the Internet by general public and the successful diffusion of the e-business applications. The web browser employs the graphic user interface and hypermedia technologies, and utilizes an array of the Internet and Web standards and protocols. Extending the transactional and informational roles of e-commerce, HEXVLQHVVLVEURDGO\GH¿QHGDVDQ\EXVLQHVVUHODWHGSURFHVVRUDFWLYLW\RQWKH,QWHUQHW,WLQFOXGHVQRW only electronic transactions of products, services, and information, but also inter-/intra- electronic col- laboration, e-services, and e-integration, to name a few. Taking advantage of the time, space, and cost advantages over traditional business, e-business became an essential component for any organization interested in staying close to customers and business partners, and achieving a competitive advantage. While managing e-business rapidly emerged as one of the most important managerial tasks for contemporary managers for the survival and growth of the business, many managers still lack the core e-business knowledge needed to develop effective e-business strategies and solutions. To make the PDQDJHU¶VMREPRUHFKDOOHQJLQJPDQ\HEXVLQHVVPRGHOVKDYH\HWWRSURYHWKHLUHI¿FDF\$VDPLQL- PXPTXDOL¿FDWLRQDGRSWLRQRIDQ\HEXVLQHVVPRGHOUHTXLUHVFRQWH[WXDOL]LQJHEXVLQHVVDQGGHVLJQLQJ a holistic solution derived from multi-layered perspectives of concepts, methodologies, tools, and ap- plications. Our chapter attempts to lay an overarching e-business foundation for researchers and practi- tioners that cuts across different disciplines and puts essential building blocks together by synthesizing multi-dimensional perspectives. E-Business Theories The rapid growth of e-business has been explained by three theories: transaction cost economics (TCE) theory, agency cost theory (ACT), and network externality effects. TCE theoretically explains why an xxxviii organization chooses a particular organizational form for transaction (Williamson, 1975 & 1979). TCE VWDWHVWKDWLILWLVFKHDSHUWRSURGXFHZKDWLWFDQEX\RQWKHPDUNHW¿UPVH[SDQGYHUWLFDOO\WRPLQLPL]H external business transactions. Two key assumptions underpin the behavioral aspects of TCE; bounded rationality and opportunism (Williamson, 1985). Researchers have focused on the ways of utilizing IT to reduce coordination costs and transaction risks (Clemons and Row, 1992). TCE can be used to explain the phenomenal growth of B2C and B2B e-commerce (Malone, et al., 1987; Bakos, 1991; Rayport & 6YLRNOD6WHLQ¿HOGDQG:KLWWHQ(FRPPHUFHKDVYHU\GLIIHUHQWFRVWVWUXFWXUHVIURPWUD- GLWLRQDOFRPPHUFHEHFDXVHLWW\SLFDOO\LQYROYHVYHU\KLJKXSIURQW¿[HGFRVWVDQGYHU\ORZYDULDEOH costs. These differences create some opportunities and threats not typically associated with traditional HFRQRP\YHU\KLJKULVNRIIDLOXUHKLJKSRWHQWLDOSUR¿WVLQFUHDVHGWKUHDWVWKDWRWKHUVZLOOVWHDOVWKH digital goods (digital leakage), etc. TCE can be used to explain the phenomenal growth of the online digital content, digital services, and software, since digital goods involve virtually no variable cost for production, storage, or distribution. Since consumers can purchase products/services from either an on- line or an off-line channel, it is reasonable to assume that consumers will choose the channel that has the lower transaction cost (Liang & Huang, 1998). Different interests between principals and agents give rise to agency costs (Jensen & Meckling, 1976; Ross, 1973). The goals and objectives of the principals and agents may not always fully correspond with each other, creating situations where the agents may not act in the best interests of the principals (Jensen & Meckling 1976). As companies grow, agency costs increase due to a rising complexity of management and control of the agents and a higher information asymmetry between the principals and the agents. Agency costs include costs of coordination and monitoring of operations, as well as opportunity costs arising when the agents make decisions that are not in the interests of the principals. Information tech- nology (IT) has impacts on agency costs (Gurbaxani & Whang 1991). IT enables companies to lower agency costs through effective coordination and monitoring of agent activities. E-business is capable of reducing agency costs by effectively coordinating sales activities, monitoring web site activities, and improving customer communication. For example, e-recruiting reduces agency costs, since it facilitates the coordination and monitoring of activities among hiring managers, human resources staff, and job applicants. %HQH¿WVWRQHWZRUNSDUWLFLSDWLRQLQFUHDVHDVWKHVL]HRIWKHQHWZRUNJHWVODUJHU7KLVHIIHFWZDV labeled as network externality (Katz & Shapiro, 1985 &1986). Shapiro and Varian (1998) suggested that FRPSDQLHVXWLOL]HWKHEHQH¿WRIQHWZRUNH[WHUQDOLW\LQWKHIRUPDWLRQRIVDOHVVWUDWHJ\7KLVLVDXQLTXH feature of online services and software products where the utility a consumer receives increases as the QXPEHURIRWKHUXVHUVLQFUHDVHV([DPSOHVLQFOXGHHPDLOLQVWDQWPHVVDJLQJ¿OHVKDULQJVRFLDOQHW- working sites, and online auctions. Lots of eBay users means that it’s theoretically more valuable to the next user when compared with smaller online auction sites. General-purpose job boards such as Monster. com, HotJobs.com, and Careerbuilder.com are a recruiting intermediary and seek to take advantage of WKHEHQH¿WVRIQHWZRUNH[WHUQDOLW\:KHQWKHMREERDUGVH[SDQGWKHQHWZRUNRIUHFUXLWHUVDQGMREDS- SOLFDQWVEHQH¿WVWRUHFUXLWHUVDQGMREDSSOLFDQWVJURZVLJQL¿FDQWO\EHFDXVHWKH\KDYHDEHWWHUFKDQFH of job-applicant match in a larger pool. Business-to-Business (B2B) E-Commerce For many traditional brick and mortar organizations, two main e-business initiatives are B2B and B2C e-commerce. Anecdotal evidence indicates that B2B e-commerce enhances supply chain information H[FKDQJHDQGFRRUGLQDWLRQ6LQFHWKHDGYHQWRIWKH:HE¿UPVKDYHLQYHVWHGKHDYLO\LQ%%HFRP- xxxix merce to save costs, to reduce delivery time, and to stay competitive (McIvor, & Humphreys, 2005). B2B e-commerce has not only elevated information reach and richness, but has also lowered technologi- FDOEDUULHUVIRU¿UPVUHJDUGOHVVRIWKH¿UPVL]H)RULQVWDQFH:HEEDVHG(',DOORZV60(VWRUHDGLO\ WDNHDGYDQWDJHRIWKH(',WHFKQRORJLHVZKLFKZHUHRQFHDYDLODEOHRQO\WRODUJH¿UPV7RDFKLHYHWKH PD[LPXPEHQH¿WVIURPWKH%%SDUWLFLSDWLRQ%%HFRPPHUFHDGRSWHUVVWLOOQHHGHGPHFKDQLVPVWR seamlessly and dynamically share information and coordinate the supply chain activities among partners without complex data and application integrations. Therefore, a number of web-based data interchange standards such as Product Data Markup Language (PDML) and UCCnet standards have emerged to promote an industry-wide adoption of data standards and application integration. Applying traditional transaction cost theory, Garicano and Kaplan (2001) attempted to analyze the HIIHFWRI%%HFRPPHUFHRQWKHWUDQVDFWLRQFRVWVFKDQJHV7KUHHFRRUGLQDWLRQHI¿FLHQFLHVSURFHVV LPSURYHPHQWVPDUNHWSODFHEHQH¿WVDQGLQGLUHFWLPSURYHPHQWVDQGPRWLYDWLRQFRVWVLQIRUPDWLRQDO asymmetries) were measured as proxies of the transactions costs from the internal data obtained from an ,QWHUQHWEDVHG¿UP7KHLUUHVXOWVLQGLFDWHGWKDW%%HFRPPHUFHFDQOHDGWRSRWHQWLDOO\ODUJHSURFHVV LPSURYHPHQWVDQGPDUNHWSODFHEHQH¿WV+RZHYHUWKH\IRXQGOLWWOHHYLGHQFHWKDWPRUHLQIRUPDWLRQDO asymmetries are achieved from the B2B e-commerce than from the existing physical ones. $V¿UPVJDLQHGPRUHH[SHULHQFHLQ%%HFRPPHUFHDQGSXVKHG%%WRHQKDQFHLQWHU¿UPEXVLQHVV relationships, the success factors and organizational constraints of the B2B adoption became a subject of great interest (Pollard & Diggles, 2006). Findings showed that the inter-organizational context and constraints, trust, and long-term relationship have a greater impact on the success of B2B e-commerce HIIRUWV%%WHFKQRORJLHVDOVRFUHDWHGLIIHUHQWEXVLQHVVYDOXHIRU¿UPVGHSHQGLQJRQKRZ¿UPVXWLOL]H WKRVHWHFKQRORJLHV/HH HW DO  ³%DVLF %%HFRPPHUFH´LV XVHG SULPDULO\ IRU WKH LQWHU¿UP H[FKDQJHRIHOHFWURQLFGRFXPHQWV,QFRQWUDVW³FROODERUDWLYH%%HFRPPHUFH´LVXVHGWRFUHDWHQHZ LQWHU¿UPFROODERUDWLRQVZLWKEXVLQHVVSDUWQHUV$VXUYH\UHVXOWIURPDJURFHU\LQGXVWU\VKRZHGWKDW the real source of performance improvement in the B2B e-commerce comes not from the basic B2B e- commerce, but from the collaborative B2B e-commerce. Current B2B e-marketplaces actively embrace LQWHU¿UPFROODERUDWLRQVDQGVXSSO\FKDLQLQWHJUDWLRQDPRQJSDUWQHUVDVZHOODVHOHFWURQLFEXVLQHVV transactions and data interchange. B2B e-commerce was also investigated from a global perspective (Raisinghani et al., 2005; Unhelkar, 2005). As the economic activities are more globalized, existing international information systems have been embracing web-based e-business technologies. Global B2B e-commerce provides potential to re- duce global business transaction costs, to lower entry barriers to a global market, and to enhance global business collaborations. Gibbs et al. (2003) observed that B2B e-commerce is likely to be driven by global forces, whereas B2C seems to be more of a local phenomenon. The difference is attributable to the fact that B2B e-commerce is driven by global economy and multinational companies that push the adoption of B2B e-commerce to their global suppliers, customers, and subsidiaries. On the other hand, the expansion of B2C to global markets encountered many obstacles such as language barriers, national law, accounting practices, and cultural differences. B2B e-marketplaces called exchanges have been an active research topic since the advent of B2B e-commerce (Goethals et al., 2007). On top of the potential transaction cost savings, e-marketplaces IXUWKHULPSURYHVXSSO\FKDLQPDQDJHPHQWE\DXWRPDWLQJLQWHU¿UPEXVLQHVVSURFHVVHVVXFKDVSUR- FXUHPHQWRUGHUPDQDJHPHQWDQGIXO¿OOPHQW7KRPVRQH+XEVDUHQHXWUDOHPDUNHWSODFHVWKDW IRFXVRQVSHFL¿FLQGXVWU\YHUWLFDOVRUVSHFL¿FEXVLQHVVSURFHVVHVKRVWHOHFWURQLFPDUNHWSODFHVDQGXVH various market-making mechanisms to mediate any-to-any transactions among businesses (Kaplan & . concepts and theories in elec- tronic business, (2) electronic business development and design methodologies, (3) electronic business tools and technologies, (4) utilizations and application of electronic. and (2) to present a framework of e-business research which consists of concepts, methodologies, tools, applications, critical issues, and emerging trends. Our chapter is both descriptive and. in the expansion of the discipline and will promote the continued growth of e-business. xxxiii E -Business: Concepts, Methodologies, Tools, Applications, and Future Directions In Lee Western