Value Creation in International Electronic Markets: A Conceptual Framework

The emergence of electronic markets in the 1970s fostered the development of numerous processes in business-to-business (B2B) markets that, in turn, led to greater efficiencies in distribution channels. Although the Internet has further fueled the growth of electronic markets during the 1990s, the primary objectives of firms in deploying electronic forms of exchange essentially remain unchanged. These goals include becoming more competitive by virtue of enhancing customer value and service, increasing market scope, and improving efficiency. Such objectives are consistent with the marketing philosophy, particularly the notion of creating greater customer value which has been the cornerstone of marketing theory and practice since the 1950s (Drucker, 1954; Day, 1990, 1994; Mizik and Jacobson, 2003). Given the potential benefits of leveraging off electronic media as a means of developing more efficient supply chain (SC) systems, and the high costs associated with logistics and supply chain management (SCM), the value creation potential of electronic media, such as the Internet, is an important topic for investigation.