Intelligent Contracting: An E-Supply Chain Management Perspective

Intelligent Contracting: An E-Supply Chain Management Perspective

Tagelsir Mohamed Gasmelseid (King Faisal University, Saudi Arabia)
DOI: 10.4018/978-1-60566-154-4.ch016
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Abstract

The unprecedented advancements witnessed in the field of information and communication technology over the last couple of years are significantly affecting the nature and magnitude of B2B interactions, as well as their operational effectiveness and efficiency. However, interaction and contracting among global enterprises continued to be challenged by the difference of laws, authentication requirements, and endorsement constrains. With the rapidly increasing proliferation of mobile devices, wireless communication systems, and advanced computer networking protocols, the deployment of electronic contracting platforms and applications has provided many opportunities to enterprises; dictated new axioms for doing business; and gave rise to new paradigms. Together with the increasing institutional transformations, technological advancements motivated businesses to engage in an interactive process of contract formulation and negotiation.
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Introduction

The use of internet technologies is enhancing distributed business processes through improved information generation, retrieval, and storage, cost reduction, disintermediation, and the transformation of organizational boundaries. The resulting global repositories of generic, volatile and heterogeneous data originating from different systems are significantly affecting B2B interaction (Klusch, 2001; Chrysovalantou & Petrakis, 2004; Daniel, 2003) and are resulting in alternative e-business models, strategies and enabling frameworks.

The use of such technologies in e-business allows firms to integrate core and support business processes and enhance information sharing efficiency. It addresses connections among enterprises (B2B) as well as between enterprises and customers (B2C) by speeding information processing and responsiveness and shifting the emphasis from optimizing the efficiency of individual enterprises to optimizing the efficiency of a network of enterprises in pursuit of improving competitive advantage (Xirogiannis & Glykas 2007).

According to Lumpkin & Gregory (2004), there are seven e-business models that account for the vast majority of business conducted on-line. Commission-based models are used by businesses (third-party intermediaries) to provide services for a fee such as brokerage services. Advertising-based models are used by companies that provide content and/or services to visitors and sell advertising to businesses that want to reach those visitors. Markup-based (merchant) models are used by businesses that add value in marketing and sales (rather than production) by acquiring products, marking up the price, and reselling them at a profit for both wholesalers and retailers. Production-based (manufacturing) models are used by companies that add value in the production process by converting raw materials into value-added products. In this respect, the internet adds value to this model by lowering marketing costs and enabling direct contact with end users to facilitate customization and problem-solving. Referral-based models are used by firms that steer customers to another company for a fee. Subscription-based models are used by businesses that charge a flat fee for providing either a service or proprietary content such as Internet service providers. Fee-for-service based models are used by companies that provide ongoing services similar to a utility company. Unlike the commission-based model, the fee-for-service model involves a pay-as-you-go system because activities are metered, with payment being made only for the amount of service used such as it is the case of application service providers.

However, the capacity of these e-business models to facilitate an organizational migration towards dynamic e-business and ERP applications will be improved with the existence of enabling platforms mainly electronic payment and contracting systems. Because dynamic e-business allows organizations to integrate systems across intranets, extranets, and the internet in a dynamic fashion and permit them to modify existing systems quickly and easily when the business process requires (Andrew et al, 2006), enabling systems align e-business technologies with organizational processes and competitiveness.

Within the context of globalization and organizational transformations, firms are starting to use information technology as instruments to support their trading relations, manage their contractual matrix of rights-and-obligations and reduce risk. Electronic contracting that provides means for a high level of automation of the contract establishment, contract management, and enactment processes presents significantly more opportunities to the trading parties (Angelov & Grefen, 2004; Sallé, 2002). However, the growing multiplicity of data modeling and organization tools, content representation algorithms, ontologies, vocabularies, and query languages that account for heterogeneity and global information overload is promising firms to gain much faster and cheaper processing than traditional contracts.

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International Advisory Board
Table of Contents
Preface
In Lee
Chapter 1
Keith F. Ward, Erik Rolland, Raymond A. Patterson
Proponents of Customer Relationship Management (CRM) suggest that a firm can develop a value creation relationship, such that an increase in... Sample PDF
Managing the Customer Relationship: A Framework for E-CRM Analysis
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Chapter 2
Soumaya Ben Letaifa
This chapter examines how e-CRM has affected both organizational and individual behavior in a leading Canadian bank. The innovative and... Sample PDF
A New Conceptual Framework for Greater Success with Integration of E-CRM
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Chapter 3
Tim Coltman
Most sectors of industry, commerce, and government have reported variation in the performance payoff from electronic customer relationship... Sample PDF
Managerial Discretion and E-CRM Performance
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Chapter 4
Patricia T. Warrington, Elizabeth Gangstad, Richard Feinberg, Ko de Ruyter
Multi-channel retailers that utilize an e-CRM approach stand to benefit in multiple arenas by providing targeted customer service as well as gaining... Sample PDF
Multi-Channel Retailing and Customer Satisfaction: Implications for E-CRM
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Chapter 5
Veronica Liljander, Pia Polsa, Kim Forsberg
Not until very recently has mobile phone technology become sophisticated enough to allow more complex customized programs, which enable companies to... Sample PDF
Do Mobile CRM Services Appeal to Loyalty Program Customers?
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Chapter 6
Michael Shumanov
While the managerial rationale for adopting customer relationship management (CRM) has been fairly well articulated in the literature, research on... Sample PDF
Developing a Global CRM Strategy
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Chapter 7
John Gallaugher
This article synthesizes and leverages two strategic frameworks when analyzing the true nature of strategy and the Internet: (1) the concept of... Sample PDF
Strategic Positioning and Resource-Based Thinking: Cutting Through the Haze of Punditry to Understand Factors Behind Sustainable, Successful Internet Businesses
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Chapter 8
Savvas Papagiannidis
This chapter covers the concept of e-business models and how they relate to the music video and television environments. After identifying the value... Sample PDF
A Tale of E-Business Models: From the Music to the Television Industry
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Chapter 9
Kirill M. Yurov
Healthcare technology markets have been recently identified as potential investment targets. Having survived a major environmental shock, the... Sample PDF
Strategic Maneuvering in Healthcare Technology Markets: The Case of Emdeon Corporation
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Chapter 10
Olli Kuivalainen
The aim of this chapter is to provide a holistic exploration of the development of the business model of a magazine Web site, and of the factors... Sample PDF
Complementary Role of Website in Business Model Development
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Chapter 11
Tobias Kollmann
LetsWorkIt.de is a German B2C platform for different kinds of service and handcraft orders. Based on the concept of reverse auctions, demanders... Sample PDF
A Reverse Auction-Based E-Business Model for B2C Service Markets
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Chapter 12
Denis Caro
The 21st century continues to witness the transformation of organizational systems globally through the deployment of Information and Communication... Sample PDF
Evolving E-Health Systems: Symbiotic Constructs Between Corporate and E-Healthcare Worlds in International Space
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Chapter 13
Karl Knapp, Sushil K. Sharma, Kevin King
Offshore information technology (IT) outsourcing has been becoming mainstream alternative to inhouse operations. While offshore development is a... Sample PDF
Socio-Economic Impacts of Offshore Outsourcing of Information Technology
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Chapter 14
Indrit Troshani
The eXtensible Business Reporting Language (XBRL) is an emerging XML-based standard which has the potential to significantly improve the efficiency... Sample PDF
Towards Theory Development for Emergent E-Business Innovations: Using Convergent Interviewing to Explore the Adoption of XBRL in Australia
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Chapter 15
Bill Vassiliadis
Copyright protection is becoming an important issue for organizations that create, use, and distribute digital content through e-commerce channels.... Sample PDF
An Introduction to the Management and Protection of Intellectual Property Rights
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Chapter 16
Tagelsir Mohamed Gasmelseid
The unprecedented advancements witnessed in the field of information and communication technology over the last couple of years are significantly... Sample PDF
Intelligent Contracting: An E-Supply Chain Management Perspective
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Chapter 17
Jaeki Song, Eric A. Walden
In this work, we examined the boundary of the applicability of network effects theory. We theorized that when adoption is cheap, the cognitive... Sample PDF
The Applicability of Network Effect Theory to Low-Cost Adoption Decisions: An Investigation of Peer-to-Peer File Sharing Technologies
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Chapter 18
Wen-Jang Jih
Two mutually reinforcing forces currently are at work to propel an upward spiraling in the business arena. As wireless communication technology... Sample PDF
An Empirical Analysis of Cellular Phone Users' Convenience Perception and Its Impact on Shopping Intention in Mobile Commerce
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Chapter 19
Fang He
Along with the exponential increase in online business transactions, the online payment system has gained in popularity because vendors and... Sample PDF
The Effects of System Features, Perceived Risk and Benefit, and Customer Characteristics on Online Bill Paying
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About the Contributors