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Selected Readings on
Information Technology
and Business Systems
Management
In Lee
Western Illinois University, USA

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Hershey • New York
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Selected readings on information technology and business systems management / In Lee, editor.
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Table of Contents

Prologue ...........................................................................................................................................xviii

About the Editor .............................................................................................................................. xxix

Section I
Fundamental Concepts and Theories

Chapter I
E-Entrepreneurship: The Principles of Founding Electronic Ventures ................................................... 1
Tobias Kollmann, University of Duisburg-Essen, Germany

Chapter II
The Role of Government in E-Business Adoption ............................................................................... 16
Barbara Roberts, The University of Southern Queensland, Australia
Mark Toleman, The University of Southern Queensland, Australia

Chapter III
The Role of Simulation in Business Process Reengineering ................................................................ 33
Firas M. Alkhaldi , Arab Academy for Banking and Financial Sciences, Jordan
Mohammad Olaimat, Arab Academy for Banking and Financial Sciences, Jordan
Abdullah Abdali Rashed, Saba University, Yemen

Chapter IV
Environmental Drivers of E-Business Strategies Among SMEs .......................................................... 59
Alessandro Arbore, Bocconi University, Italy
Andrea Ordanini, Bocconi University, Italy
 Section II
Development and Design Methodologies

Chapter V
Conflicts, Compromises, and Political Decisions: Methodological Challenges
of Enterprise-Wide E-Business Architecture Creation ......................................................................... 71
Kari Smolander, Lappeenranta University of Technology, Finland
Matti Rossi, Helsinki School of Economics, Finland

Chapter VI
Nazar Foods Company: Business Process Redesign Under Supply Chain Management Context ....... 94
Vichuda Nui Polatoglu, Anadolu University, Turkey

ChapterVII
BROOD: Business Rules-Driven Object Oriented Design................................................................. 108
Pericles Loucopoulos, Loughborough University, UK
Wan M.N. Wan Kadir, Universiti Teknologi Malaysia, Malaysia

Chapter VIII
Best Practice in Company Standardization ......................................................................................... 141
Henk J. de Vries, Erasmus University, Rotterdam, The Netherlands
Florens J. C. Slob, Van Gansewinkel Zuid-Holland, Vlaardingen, The Netherlands

Section III
Tools and Technologies

Chapter IX
Best Practice in Leveraging E-Business Technologies to Achieve Business Agility ......................... 164
Ehap H. Sabri, University of Texas at Dallas, USA

Chapter X
Building Dynamic Business Process in P2P Semantic Web ............................................................... 186
Timon C. Du, The Chinese University of Hong Kong, Hong Kong, China
Eldon Y. Li, National Chengchi University, Taiwan & California Polytechnic State University, USA

Chapter XI
Patterns for Designing Agent-Based E-Business Systems.................................................................. 202
Michael Weiss, Carleton University, Canada

Chapter XII
Performance Evaluation of Consumer Decision Support Systems ..................................................... 225
Jiyong Zhang, Ecole Polytechnique Fédérale de Lausanne (EPFL), Switzerland
Pearl Pu, Ecole Polytechnique Fédérale de Lausanne (EPFL), Switzerland
Chapter XIII
E-Business Technologies in E-Market Literature ............................................................................... 244
Nikos Manouselis, Agricultural University of Athens, Greece

Section IV
Utilization and Application

Chapter XIV
Process-Oriented Assessment of Web Services .................................................................................. 269
Jan-Hendrik Sewing, Siemens Management Consulting, Germany
Michael Rosemann, Queensland University of Technology, Australia
Marlon Dumas, Queensland University of Technology, Australia

Chapter XV
Application of Web Services in the Context of E-Procurement: An SME Foci ................................. 294
Stanley Oliver, University of Bolton, UK
Kiran Maringanti , University of Bolton, UK

Chapter XVI
E-Business Adoption in SMEs: Some Preliminary Findings
from Electronic Components Industry ................................................................................................ 321
Mark Xu, Portsmouth Business School, UK
Ravni Rohatgi, Southampton, UK
Yanqing Duan, University of Bedfordshire, UK

Chapter XVII
How Can Internet Service Providers Tap into the Potentially-Lucrative Small Business Market? .... 339
Avinash Waikar, Southeastern Louisiana University, USA
Minh Q. Huynh, Southeastern Louisiana University, USA

Chapter XVIII
Process-Driven Business Integration Management for Collaboration Networks ............................... 356
Dominik Vanderhaeghen, Institute for Information Systems (IWi) at the German Research Center
for Artificial Intelligence (DFKI), Germany
Anja Hofer, Institute for Information Systems (IWi) at the German Research Center for Artificial
Intelligence (DFKI), Germany
Florian Kupsch, Institute for Information Systems (IWi) at the German Research Center for
Artificial Intelligence (DFKI), Germany

Chapter XIX
Measurements in E-Business .............................................................................................................. 375
Damon Aiken, Eastern Washington University, USA
 Section V
Critical Issues

Chapter XX
E-Business in Developing Countries: A Comparison of China and India .......................................... 385
Peter V. Raven, Seattle University, USA
Xiaoqing Huang, Seattle University, USA
Ben B. Kim, Seattle University, USA

Chapter XXI
A Model of Information Security Governance for E-Business ........................................................... 404
Dieter Fink, Edith Cowan University, Australia
Tobias Huegle, Edith Cowan University, Australia
Martin Dortschy, Institute of Electronic Business–University of Arts, Germany

Chapter XXII
A Security Blueprint for E-Business Applications.............................................................................. 416
Jun Du, Tianjin University, China
Yuan-Yuan Jiao, Nankai University, China
Jianxin (Roger) Jiao, Nanyang Technological University, Singapore

Chapter XXIII
E-Business Process Management and Intellectual Property: Issues and Implications ....................... 427
Kathleen Mykytyn, Southern Illinois University, USA
Peter Mykytyn, Southern Illinois University, USA

Chapter XXIV
E-Business Risk Management in Firms .............................................................................................. 448
Ganesh Vaidyanathan, Indiana University South Bend, USA

Section VI
Emerging Trends

Chapter XXV
Evaluating E-Business Leadership and its Links to Firm Performance ............................................ 471
Jing Quan, Salisbury University, USA

Chapter XXVI
Business Networking: The Technological Infrastructure Support ..................................................... 481
Claudia-Melania Chituc, Faculty of Engineering of the University of Porto (FEUP),
INESC Porto, Portugal
Américo Lopes Azevedo, Faculty of Engineering of the University of Porto (FEUP),
INESC Porto, Portugal
Chapter XXVII
Outsourcing Non-Core Business Processes: An Exploratory Study .................................................. 499
Adriana Romaniello, Universidad Rey Juan Carlos, Spain
B. Dawn Medlin, Appalachian State University, USA

Chapter XXVIII
Delivering the ‘Whole Product’: Business Model Impacts and Agility Challenges
in a Network of Open Source Firms .................................................................................................. 516
Joseph Feller, University College Cork, Ireland
Patrick Finnegan, University College Cork, Ireland
Jeremy Hayes, University College Cork, Ireland

Index ................................................................................................................................................... 530

Detailed Table of Contents

Prologue ...........................................................................................................................................xviii

About the Editor .............................................................................................................................. xxix

Section I
Fundamental Concepts and Theories

Chapter I
E-Entrepreneurship: The Principles of Founding Electronic Ventures ................................................... 1
Tobias Kollmann, University of Duisburg-Essen, Germany

The fundamental advantages of information technology in regard to efficiency and effectiveness assure
that its diffusion in society and in most industries will continue. The constant and rapid development of
Internet-related technologies in the accompanying net economy has inevitably had a significant influ-
ence on various possibilities for developing innovative online business concepts and realizing these by
establishing entrepreneurial ventures. The term “e-entrepreneurship” respectively describes the act of
founding new companies that generate revenue and profits independent from a physical value chain.
With this in mind, this chapter focuses on the process of creating electronic customer value within the
net economy as well as the success factors and development phases of electronic ventures.

Chapter II
The Role of Government in E-Business Adoption ............................................................................... 16
Barbara Roberts, The University of Southern Queensland, Australia
Mark Toleman, The University of Southern Queensland, Australia

This chapter provides an analysis of the role of government in e-business adoption with empirical evi-
dence from Australia. It is shown that government influence is multifaceted. Governments champion
e-business adoption for national economic gain; they provide the physical network on which much of
e-business depends and increasingly provide e-government services to improve regulation and compli-
ance effectiveness. E-government in particular can act as a strong driver of organizational adoption for
some types of e-business processes. The authors hope that further research by IS professionals will guide
future e-business project directions by improving the understanding of government’s role in e-business
adoption in practice, which in turn will improve theoretical understanding of how the benefits can best
be maximized.
Chapter III
The Role of Simulation in Business Process Reengineering ................................................................ 33
Firas M. Alkhaldi , Arab Academy for Banking and Financial Sciences, Jordan
Mohammad Olaimat, Arab Academy for Banking and Financial Sciences, Jordan
Abdullah Abdali Rashed, Saba University, Yemen

This chapter discusses the importance of business process simulation, illustrating the relationship be-
tween business process reengineering (BPR) and change management and focusing on both the role
of simulation in supporting BPR and the effect of simulation on business environment related skills,
business management related skills, leadership related skills, employees empowering level, process im-
provement, ethical issues, and stakeholders’ management skills. This selection also discusses the value
of simulation in implementing reengineering strategies, presents future challenges of business process
simulation, and describes the limitations of simulation technology in reengineering business processes.
Finally, it concludes with a discussion of the characteristics of successful simulation and simulation
applications.

Chapter IV
Environmental Drivers of E-Business Strategies Among SMEs .......................................................... 59
Alessandro Arbore, Bocconi University, Italy
Andrea Ordanini, Bocconi University, Italy

In front of traditional interpretations of the digital gap based on endogenous conditions of the firms,
this chapter intends to emphasize the importance that some external pressures may have on the e-busi-
ness strategy of small and medium enterprises (SMEs). The environmental factors analyzed here are
market position, competitive intensity, and institutional pressures. SMEs have been grouped according
to their level of e-business involvement, in relation to the number of e-business solutions adopted so
far. A general conclusion is that different models seem to explain exclusion and involvement. Specifi-
cally, two factors among those analyzed reveal to be more suitable in explaining e-business exclusion.
They are the size of a SME and a lack of institutional pressures to adopt. On the other hand, e-business
involvement seems to be primarily prompted by a selective competitive environment and not by imita-
tive behaviors, as in the previous case.

Section II
Development and Design Methodologies

Chapter V
Conflicts, Compromises, and Political Decisions: Methodological Challenges
of Enterprise-Wide E-Business Architecture Creation ......................................................................... 71
Kari Smolander, Lappeenranta University of Technology, Finland
Matti Rossi, Helsinki School of Economics, Finland

This chapter describes the architecture development process in an international ICT company, which is
building a comprehensive e-business system for its customers. The implementation includes the inte-
gration of data and legacy systems from independent business units and the construction of a uniform
Web-based customer interface. Research focuses on the creation of e-business architecture and observes
that instead of guided by a prescribed method, the architecture emerges through somewhat non-deliber-
ate actions obliged by the situation and its constraints, conflicts, compromises, and political decisions.
Conclusions are drawn from the observations and possibilities and weaknesses of the support that UML
and RUP provide for the process are pointed out.

Chapter VI
Nazar Foods Company: Business Process Redesign Under Supply Chain Management Context ....... 94
Vichuda Nui Polatoglu, Anadolu University, Turkey

This chapter presents the case study of the Nazar Group of Companies, which has been a leading pro-
ducer and distributor of cookies, crackers, cakes, chocolate, and other products in Turkey for more than
40 years. This case describes the impact this group’s management had in making the companies more
consumer-focused using supply chain management as a strategic framework. Descriptions of supporting
business systems are summarized and the challenges and problems facing managers are presented.

ChapterVII
BROOD: Business Rules-Driven Object Oriented Design................................................................. 108
Pericles Loucopoulos, Loughborough University, UK
Wan M.N. Wan Kadir, Universiti Teknologi Malaysia, Malaysia

A critical success factor for information systems is their ability to evolve as their environment changes.
There is compelling evidence that the management of change in business policy can have a profound
effect on an information system’s ability to evolve effectively and efficiently. For this to be successful,
there is a need to represent business rules from the early requirements stage, expressed in user-under-
standable terms, to downstream system design components and maintain these throughout the lifecycle
of the system. The BROOD approach, discussed in this chapter, aims to provide seamless traceability
between requirements and system designs through the modeling of business rules and the successive
transformations, using UML as the modeling framework.

Chapter VIII
Best Practice in Company Standardization ......................................................................................... 141
Henk J. de Vries, Erasmus University, Rotterdam, The Netherlands
Florens J. C. Slob, Van Gansewinkel Zuid-Holland, Vlaardingen, The Netherlands

This chapter describes a best practice model for standardization within companies, based on a process
approach to the development of company standards. Per process, a best practice is developed based on
an investigation within six multinational companies and a review of literature, if any. The findings are
benchmarked against experiences in three comparable fields: IT management, quality management,
and knowledge management. Though the number of company standards exceeds by far the number of
external standards, they have been neglected in standardization research. The authors hope that standards
practitioners will benefit from their study and that it will stimulate researchers to pay more attention to
this topic.
 Section III
Tools and Technologies

Chapter IX
Best Practice in Leveraging E-Business Technologies to Achieve Business Agility ......................... 164
Ehap H. Sabri, University of Texas at Dallas, USA

This chapter explains the best practice in implementing e-business technologies to achieve business
cost reduction and business agility. Although the benefits of implementing e-business technologies are
clear, enterprises struggle in integrating e-business technologies into supply-chain operations. Within
this selection, the author illustrates the strategic and operational impact of e-business technologies on
supply chains and explains the performance benefits and challenges firms should expect in implementing
these technologies. Also, the author provides the best-practice framework in leveraging e-business ap-
plications to support process improvements in order to eliminate non-value-added activities and provide
real-time visibility and velocity for the supply chain. Finally, this chapter presents the future trends of
using e-business in transformation programs.

Chapter X
Building Dynamic Business Process in P2P Semantic Web ............................................................... 186
Timon C. Du, The Chinese University of Hong Kong, Hong Kong, China
Eldon Y. Li, National Chengchi University, Taiwan & California Polytechnic State University, USA

Business process management systems such as the workflow management system and the enterprise
application integration system manage process flow on a minute-by-minute basis in various application
domains. In the conventional approach, the business process must be predefined before it is implemented.
However, involving business users in the early stage of the design phase is neither efficient nor realistic
in the dynamic business world. This chapter proposes a framework to implement a dynamic business
process in the P2P Semantic Web, which provides the flexibility to dynamically alter business process
and to take semantic data into consideration.

Chapter XI
Patterns for Designing Agent-Based E-Business Systems.................................................................. 202
Michael Weiss, Carleton University, Canada

Agents are rapidly emerging as a new paradigm for developing software applications. They are being
used in an increasing variety of applications, ranging from relatively small systems such as assistants to
large, open, mission-critical systems like electronic marketplaces. One of the most promising areas of
applications for agent technology is e-business. This chapter describes a group of architectural patterns
for agent-based e-business systems. These patterns relate to front-end e-business activities that involve
interaction with the user, and delegation of user tasks to agents. Patterns capture well-proven, common
solutions, and guide developers through the process of designing systems. This chapter should be of
interest to designers of e-business systems using agent technology. The description of the patterns is
followed by the case study of an online auction system to which the patterns have been applied.
Chapter XII
Performance Evaluation of Consumer Decision Support Systems ..................................................... 225
Jiyong Zhang, Ecole Polytechnique Fédérale de Lausanne (EPFL), Switzerland
Pearl Pu, Ecole Polytechnique Fédérale de Lausanne (EPFL), Switzerland

Consumer decision support systems (CDSSs) help online users make purchasing decisions in e-com-
merce Web sites. To more effectively compare the usefulness of the various functionalities and interface
features of such systems, the authors of this chapter have developed a simulation environment for deci-
sion tasks of any scale and structure. A set of experiments carried out in such simulation environments
showed that most CDSSs employed in current e-commerce Web sites are suboptimal. On the other hand,
a hybrid decision strategy based on four existing ones was found to be more effective. This result is
consistent with earlier findings in that some advanced tools do produce more accurate decisions while
requiring a comparable amount of user effort. However, the simulation environment will enable the
efficient comparison of more advanced tools, and indicate further opportunities for functionality and
interface improvements.

Chapter XIII
E-Business Technologies in E-Market Literature ............................................................................... 244
Nikos Manouselis, Agricultural University of Athens, Greece

E-business processes are implemented through existing, as well as novel technologies. This chapter fo-
cuses on the field of electronic markets (e-markets), and studies the technologies and solutions that are
applied and proposed in this field. In particular, the chapter reviews e-market literature in order to identify
which are the technological trends that have appeared in the e-markets field during the last decade. A
conceptual model that allows for the classification of e-market research literature according to a number
of technical topics is first introduced. Then, e-market literature is reviewed, and the technologies that
seem to be attracting more research attention are identified. Representative contributions are discussed,
and directions for future research are indicated.

Section IV
Utilization and Application

Chapter XIV
Process-Oriented Assessment of Web Services .................................................................................. 269
Jan-Hendrik Sewing, Siemens Management Consulting, Germany
Michael Rosemann, Queensland University of Technology, Australia
Marlon Dumas, Queensland University of Technology, Australia

Though Web services offer unique opportunities for the design of new business processes, the assessment
of the potential impact of Web services is often reduced to technical aspects. This chapter proposes a
four-phase methodology which facilitates the evaluation of the potential use of Web services in e-business
systems both from a technical and from a strategic viewpoint. It is based on business process models,
which are used to frame the adoption of Web services and to assess their impact on existing business
processes. The application of this methodology is described using a procurement scenario.
Chapter XV
Application of Web Services in the Context of E-Procurement: An SME Foci ................................. 294
Stanley Oliver, University of Bolton, UK
Kiran Maringanti , University of Bolton, UK

This chapter highlights the importance of e-procurement and the barriers affecting its widespread adoption
in the context of small and medium enterprises. The chapter takes a technical perspective and critically
analyzes the importance of information systems in the procurement domain and the integration challenges
faced by SMEs in today’s digitally networked economy. Next, the role of XML-based Web services in
solving the integration challenges faced by SMEs is discussed. Subsequently, a procurement transfor-
mation framework enabled by Web services which provides a clear methodology of the way in which
information systems should be introduced in the procurement domain is discussed. The chapter concludes
by a discussion of the measures that must be undertaken by various stakeholders like the government
and universities in increasing the awareness levels of SMEs to the latest e-business mechanisms.

Chapter XVI
E-Business Adoption in SMEs: Some Preliminary Findings
from Electronic Components Industry ................................................................................................ 321
Mark Xu, Portsmouth Business School, UK
Ravni Rohatgi, Southampton, UK
Yanqing Duan, University of Bedfordshire, UK

The lack of anticipated engagement in e-business by Small and Medium sized Enterprises (SMEs) is
a rising concern to the UK government and service providers alike. This chapter uses the e-adoption
model to examine the current practice of e-business technology adoption in SMEs and the driving forces
for and against the adoption. Through interviews with 40 owner managers in the electronic components
industry, the chapter reveals that most of the small firms in this industry are at the lower level of the “e-
adoption ladder”—predominantly using the Internet and e-mail. The e-adoption ladder model is modified
by incorporating the influential factors identified within this study. The findings have many implications
for researchers, service providers, and policy makers.

Chapter XVII
How Can Internet Service Providers Tap into the Potentially-Lucrative Small Business Market? .... 339
Avinash Waikar, Southeastern Louisiana University, USA
Minh Q. Huynh, Southeastern Louisiana University, USA

Small businesses need Internet service to be competitive, and their spending on IT activities continues
to grow. How can Internet Service Providers tap into this potentially lucrative market? This chapter at-
tempts to identify Internet service features that are important to small businesses. Specifically, it used a
survey method to explore the relationships between the importance of various features and organizational
characteristics of small businesses, for example, size and type of business. The results show that the size
of business affects the perceived importance placed on certain features, while the type of business does
not. Implication of this finding for packaging Internet service is discussed.
Chapter XVIII
Process-Driven Business Integration Management for Collaboration Networks ............................... 356
Dominik Vanderhaeghen, Institute for Information Systems (IWi) at the German Research Center
for Artificial Intelligence (DFKI), Germany
Anja Hofer, Institute for Information Systems (IWi) at the German Research Center for Artificial
Intelligence (DFKI), Germany
Florian Kupsch, Institute for Information Systems (IWi) at the German Research Center for
Artificial Intelligence (DFKI), Germany

In this chapter, a framework for cross-enterprise business integration management addressing orga-
nizational and technical dimensions is developed. First, the authors identify basic characteristics of
cross-organizational business processes whose complexity necessitates efficient and effective business
integration management. Then, a holistic framework is created, consisting of a view concept for knowl-
edge management in collaboration networks, a three-tier architecture, and a process-oriented life-cycle
model. The framework for business integration management offers the required methods to set up
enterprise processes and ICT-support in collaboration networks. It proposes a management guideline
for collaboration participants defining what, why, when, and how they might manage their business
integration intra- and cross-organizationally.

Chapter XIX
Measurements in E-Business .............................................................................................................. 375
Damon Aiken, Eastern Washington University, USA

This chapter is designed to answer two fundamental questions related to research on electronic surveys
and measures. First, what are some of the major measures specifically related to e-business? Second,
what makes Internet research methods different from off-line research methods? The chapter partly
delineates what makes Internet research methods distinctive through its discussion and separation of
the most common measures. This separation not only provides the framework for the chapter, but it
distinguishes research for understanding the evolving e-consumer from measures related to the new
paradigm for e-business strategy. In total, 17 different measures are discussed. The chapter concludes
with a discussion of emerging issues in e-business metrics, and possibilities for future research.

Section V
Critical Issues

Chapter XX
E-Business in Developing Countries: A Comparison of China and India .......................................... 385
Peter V. Raven, Seattle University, USA
Xiaoqing Huang, Seattle University, USA
Ben B. Kim, Seattle University, USA

The Internet has changed the way many companies do business, but has also tended to increase the dispar-
ity between firms in developed countries and those in developing countries. This chapter examines two
large developing countries, China and India, in an attempt to understand their approaches to developing
e-business. These approaches are based on a number of factors, including government initiatives and
focus, infrastructure building, experience and understanding of business operations, and culture. China
appears to be ahead of India in the mechanics and infrastructure, but India is ahead in e-readiness. While
both countries are poised for rapidly increasing e-business, poverty and inequality between urban and
rural connectivity must be resolved to really take advantage of e-business.

Chapter XXI
A Model of Information Security Governance for E-Business ........................................................... 404
Dieter Fink, Edith Cowan University, Australia
Tobias Huegle, Edith Cowan University, Australia
Martin Dortschy, Institute of Electronic Business–University of Arts, Germany

This chapter identifies various levels of governance followed by a focus on the role of information
technology (IT) governance with reference to information security for today’s electronic business (e-
business) environment. It outlines levels of enterprise, corporate, and business governance in relation
to IT governance before integrating the latter with e-business security management. The emergence of
and dependence on new technologies, like the Internet, have increased exposure of businesses to tech-
nology-originated threats and have created new requirements for security management and governance.
The proposed model achieves the necessary integration through risk management in which the tensions
between threat reduction and value generation activities have to be balanced

Chapter XXII
A Security Blueprint for E-Business Applications.............................................................................. 416
Jun Du, Tianjin University, China
Yuan-Yuan Jiao, Nankai University, China
Jianxin (Roger) Jiao, Nanyang Technological University, Singapore

This chapter develops a security blueprint for an e-business environment taking advantage of the three-
tiered e-business architecture. This security blueprint suggests best practices in general. It involves (1)
security control by layers — from physical access, to network communication, to operating systems,
to applications, and (2) different stages of the management process, including planning, deployment,
administration, and auditing. Also reported is a case study of the implementation of the proposed security
blueprint in a Singapore multinational corporation. Such issues as security control analysis, management
process analysis, and cost-benefits analysis are discussed in detail.

Chapter XXIII
E-Business Process Management and Intellectual Property: Issues and Implications ....................... 427
Kathleen Mykytyn, Southern Illinois University, USA
Peter Mykytyn, Southern Illinois University, USA

The emergence of e-business as a viable business model is unquestioned and global in its involvement
and impact. Further, the value that intellectual property (IP) in the form of trademarks, copyrights, and
patents plays in that medium of doing business impacts businesses, information technology (IT) profes-
sionals, academics responsible for IT coursework and programs, and, of course, the legal community.
This chapter reviews these IP types with particular emphasis on their relationship and impact on e-busi-
ness. The chapter also provides appropriate recommendations for e-business in light of these IP issues,
and identifies some possible future trends and research issues.

Chapter XXIV
E-Business Risk Management in Firms .............................................................................................. 448
Ganesh Vaidyanathan, Indiana University South Bend, USA

In order to understand the different types of e-business risks, this chapter uses a framework focusing on
five dimensions of e-businesses. This chapter examines e-business risk management in a broader context
by integrating various functions within firms. Primary consideration is given to characteristics of the
integrated supply chain functionalities of a firm and their associations with information technology (IT),
business models of firms, business processes that have become important to e-business, services that
have been interlocked into e-business, the relative importance of partnerships, trust, and the necessity
of adaptation in managing the supply chain in order to attain competitive advantage. The purpose of this
chapter is to understand how to identify and manage various online risks.

Section VI
Emerging Trends

Chapter XXV
Evaluating E-Business Leadership and its Links to Firm Performance ............................................ 471
Jing Quan, Salisbury University, USA

Electronic business (e-business) has been popularly lauded as “new economy.” As a result, firms are
prompted to invest heavily in e-business related activities such as supplier/procurement and online ex-
changes. Whether the investments have actually paid off for the firms remain largely unknown. Using
the data on the top 100 e-business leaders compiled by InternetWeek, the leaders are compared with
their comparable counterparts in terms of profitability and cost in both the short-run and long-run. It is
found that while the leaders have superior performance based on most of the profitability measurements,
such superiority is not observed when cost measurements are used.

Chapter XXVI
Business Networking: The Technological Infrastructure Support ..................................................... 481
Claudia-Melania Chituc, Faculty of Engineering of the University of Porto (FEUP),
INESC Porto, Portugal
Américo Lopes Azevedo, Faculty of Engineering of the University of Porto (FEUP),
INESC Porto, Portugal

The rapid evolution of information and communication technologies, the changing client’s demands,
and market conditions impelled enterprises to adapt their way of undertaking business, from traditional
practices to e-business, and to participate in new forms of collaboration, such as networked organiza-
tions. The aim of this chapter is to underline the main issues, trends, and opportunities related to busi-
ness integration from a technological perspective, analyzing and discussing the most relevant business
integration reference models, frameworks, standards, technologies, and supporting infrastructures, and
to briefly present relevant research projects in the area of business networking. A special emphasis is
made on frameworks such as ebXML and RosettaNet, and the importance of papiNet, BPLE4WS, and
freebXML is underlined.

Chapter XXVII
Outsourcing Non-Core Business Processes: An Exploratory Study .................................................. 499
Adriana Romaniello, Universidad Rey Juan Carlos, Spain
B. Dawn Medlin, Appalachian State University, USA

This chapter examines corporate performance effects when banks outsource noncore business processes.
Additionally, the article proposes that knowledge management process plays a significant role in de-
termining the outcomes of outsourcing. Drawing from resource theory and knowledge management
literature, the authors develop the concept of managerial outsourcing competence and then propose a
conceptual model.

Chapter XXVIII
Delivering the ‘Whole Product’: Business Model Impacts and Agility Challenges
in a Network of Open Source Firms .................................................................................................. 516
Joseph Feller, University College Cork, Ireland
Patrick Finnegan, University College Cork, Ireland
Jeremy Hayes, University College Cork, Ireland

It has been argued that competitive necessities will increasingly require OSS companies to participate in
cooperative business networks in order to offer the complete product/service (whole product) demanded
by customers. This chapter examines Zea Partners, a network of small open source companies cooperating
to deliver the ‘whole product’ in the area of content management systems (CMSs). It investigates how
participation in the network augments the business models of participant companies and identifies the
business agility challenges faced by the network. The article concludes that reconciling the coordina-
tion needs of OSS networks with the operational practices of participant firms is a critical issue if such
networks are to achieve adaptive efficiency to deliver whole products in a ‘bazaar-friendly’ manner.

Index ................................................................................................................................................... 530

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