The dynamics of global e‐commerce: an organizational ecology perspective

Abstract

Purpose A classical model of organizational ecology dynamics which is utilized to characterize an ecosystem called the internet is proposed and a parallel is drawn between the population ecology model and the current global e‐commerce environment. Design/methodology/approach Survivorship theory is applied to global e‐commerce. The Verhulst‐Pearl logistic equation can be used to describe the inhibition of growth within an ecosystem. The approach is to apply the Verhulst‐Pearl logistic equation to describe international growth dynamics of the internet. Findings When applying the Verhulst‐Pearl equation to the internet environment around the world, the number of domain names or host counts, the rate at which there is an increase or decrease in the number of domain names, and the availability of information technology infrastructure are all factors that are part of the equation. The model of population dynamics presented in our discussion lends itself to the description of the current pattern of growth within the internet environment. Practical implications The application of population ecology to international growth dynamics describes the long‐term survival and differentiation strategies that impact success. The next evolution of firms on the internet, which may be the ultimate survivors, should follow the path characterized as low cost producers with a focus on meeting the needs of the consumers on the internet. An ecological approach allows managers to ascertain the effectiveness of their organizations in the internet environment and accordingly devise strategies to embrace changes and challenges of the global environment. Originality/value The population ecology conceptual framework offers promise for a more sophisticated and methodologically rigorous approach to future investigations by both researchers and practitioners. The operationalization of the organizational ecology model for application to the internet is an extension of the literature.

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