Business‐to‐Business ( B 2 B ) Internet Business Models

Abstract

Abstract Business‐to‐business (B2B) e‐commerce refers to transactions between business entities conducted electronically via Internet, extranet, intranet, and/or private networks. B2B commerce existed before, with private telecommunication networks. These networks require costly investments in infrastructure and operation. With the advent of Web‐based technologies, data communication over the Internet has become affordable for many businesses, maximizing the efficiency of their business communication internally as well externally. Together with business‐to‐consumer (B2C) e‐commerce, one observes booming B2B e‐commerce in the e‐marketplace. It has been asserted that both buyers and suppliers benefit from transactions over the Internet. B2B e‐commerce models address effectively issues in supply chain management and customer relationship management. Companies have reached a larger pool of buyers/suppliers, making better deals in purchases/sales. B2B e‐commerce has reduced related administrative/logistic costs and simplified paperwork. It has also reduced human error and expedited the purchase/sale cycle. This article reviews major B2B e‐commerce business models, their merits and limitations, critical success factors for implementation, and enabling technologies and services.

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