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ented [3] or a marketstructure perspective [33]. Bakos argued that it is the electronic market systems that create a space where buyers and sellers converge. Malone et al. referred to it as a corresponding governance mechanism. Zwass [51 and 52] proposed an architecture that embraces the aforementioned perspectives as two ponents of an emerce structure. Emerce related IT, in this framework, serves as the infrastructure that leads to the rise of emerce. At the top level, resulting from the impact of emerce operation is the issue of governance mechanism. Support for electronic marketplaces and electronic hierarchies can be found at the bottom level. Inbetween these levels there are application layers that provide valueadded activities with respect to information sharing, business transactions, and relationship building. Thus, emerce includes not only buying and selling goods, but also various processes within and across anizations. We define emerce as the use of puting and munication technologies to engage in a wide range of activities up and down the valueadded chain, both within and outside the anization [1]. It is widely argued that emerce related IT, such as EDI, EFT, electronic messaging, shared corporate digital library etc. could enhance both anizational efficiency and effectiveness. In terms of efficiency benefits, an emerce application can generate internal efficiency and external coordination through changes in intra or interanizational integrative processes [24]. Even before the rise of emerce, and particularly the Inter, panies engaged in electronic merce using electronic data interchange (EDI) to improve their operational efficiency. Today, Inter EDI can further integrate and enhance an anization’s operational efficiency. Riggins and Mukhopadhyay [43] using Chrysler as a case, has shown that the total benefits provided by electronic integration are both tangible and significant. Effective benefits of emerce technology are reflected in the use of the extended information exchange work to create anizational value. Because of the addressability and responsiveness [14] that characterize the system, emerce could increase an anization’s ability to sense and respond to the market needs by collecting and disseminating market information throughout the anization. With that information, the anization could accurately assess or stimulate market demand and search for new markets. Making the right decision would in turn have a strategic impact that could change the relationship of the anization with its business rivals and customers. Despite the benefits provided by emerce, however, adopting emerce does not