Resource title

Value creation in e-business

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Resource description

The authors explore the theoretical foundations of value creation in e-business by examining how 59 American and European e-businesses that have recently become publicly traded corporations create value. Grounded in the rich data obtained from case study analyses and in the received theory in entrepreneurship and strategic management, they develop a model of the sources of value creation. The model suggests that the value-creation potential of e-businesses hinges on four interdependent dimensions, namely, efficiency, complementarities, lock-in, and novelty. Their findings suggest that no single entrepreneurship or strategic management theory can fully explain the value-creation potential of e-business. Rather, an integration of the received theoretical perspectives on value creation is needed. To enable such an integration, they offer the business-model construct as a unit of analysis for future research on value creation. A business model depicts the design of transaction content, structure, and governance so as to create value through the exploitation of business opportunities. They propose that a firm's business model is an important locus of innovation and a crucial source of value creation for the firm and its suppliers, partners, and customers.

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Resource language

en

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application/pdf

Resource resource URL

http://flora.insead.edu/fichiersti_wp/inseadwp2000/2000-74.pdf

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Copyright INSEAD. All rights reserved