Leading the Organizational Dynamics of E-Business Firms

Leading the Organizational Dynamics of E-Business Firms

Esin Can Mutlu (Yildiz Technical University, Turkey), Yasemin Bal (Yildiz Technical University, Turkey) and Pinar Büyükbalci (Yildiz Technical University, Turkey)
DOI: 10.4018/978-1-61520-611-7.ch029
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Abstract

As a result of globalization and continuously changing environmental conditions, new business models emerge in the new era of management. E-business firms also have been formed during this era and took attention of management scholars as they show a wide variety of new organizational dynamics in terms of certain structural characteristics. Leading these dynamics requires special leadership traits that constitute a base for the harmonic functioning of e-business firms. In this context, the main aim of this study is to conceptually discuss the important organizational aspects in e-business firms and support them with the needed leadership traits.
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Background

When we look at the definition of e-business (or e-commerce), we see that there is no consensus in literature. To some, e-business is just commerce using computers while to others it is the more encompassing definition of business activities carried out over computer-mediated channels (Davis, 2003).

Basing on Turban et. al. (2002), Gottschalk (2006) differentiated between the terms “e-commerce” and “e-business” by claiming that e-business is a more comprehensive concept. According to him, “Electronic Commerce” is a concept that describes the process of buying, selling or exchanging, products, services and information, via computer networks, including the Internet; while, e-business refers to a broader definition of E-Commerce, not just buying and selling of goods and services, but also, servicing customers, collaborating with business partners, and conducting electronic transactions within an organization. Gottschalk (2006) further clarifies these conceptual definitions with the following illustration (p.16);

Figure 1.

The concepts of E-Commerce and E-Business

Key Terms in this Chapter

Complexity: Complexity refers to the number and diversity of the elements in the internal and external environment of organization.

Transformational Leadership: Leadership style that influences emotions and moral values of followers to divert their efforts towards a certain goal, by using motivation as a major tool.

Formalization: Formalization refers to the extent to which explicit rules, regulations, policies and procedures govern organizational activities.

Centralization: Centralization means that the decision authority is located near the top of the organization. If the decision authority is pushed downward to lower organizational levels then the company is called to be decentralized.

E-Commerce: E-commerce can be defined as a concept that describes the process of buying, selling or exchanging, products, services and information via computer networks including the internet.

Leadership: Leadership can be defined as the process of influencing other people to understand and agree about what needs to be done and how it can be done effectively. It also consists of facilitating individual and collective efforts to accomplish the shared objectives and reach the goals.

E-Business: E-business refers to a broader definition of e-commerce. It includes not only buying and selling of goods and services, but also, servicing customers, collaborating with business partners and suppliers, conducting electronic transactions within an organization.

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