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Access eCommerce Research Briefs 

Brief 3

Four-stage e-commerce development model

Rao et al. (2003) developed a four-stage e-commerce development model and characterized how business is developed on the Internet.

The Presence Stage is that company has e-mail address and may have online catalog. The benefits of this stage are flexibility to change the business or the product based on the changing market and competitive access cost for the target users. There are several challenges. Those are resistance to technology within the organization and financial costs for development of technology (hardware/software) within the company. Effective presentation of product or service is required.

The Two-Way Communications Stage (Portals) is that communicating or online order placing with consumer or suppliers is accomplished.Business should be collaborating with suppliers outside the organization, as well as within. In online trade, cultural and language issues should be considered.

The Online Financial Transactions Stage is to accomplish financial transactions (both selling and buying) between partners. Technology for all financial business and transactions are enable to collaborate partnerships and third party opportunities. There are challenges in online trade because of the inconsistency of global financial system; tax and trade policy; legal environments; intellectual property. Security issues and competitive payment systems should be considered in this stage.

The Enterprise Integration Stage is to accomplish the complete integration of business processes, including managing customer and the supply chain relationship.Business process should be integrated and controlled. Significant technological barriers exist including technology availability; technology diffusion regionally and globally.

Rao, S.S., Metts, G., & Monge, C.A.M. (2003). Electronic commerce development in small and medium sized enterprises: A stage model and its implications. Business Process Management Journal, 9 (1), 11-32.

Research Briefs are provided by students in DHA 8170 Topics in Design, Housing and Apparel: Global E-commerce. Dr. Seung-Eun Lee, University of Minnesota


Access eCommerce Research Briefs

  • Brief 1: How businesses are using the Internet
  • Brief 2: Small business Internet commerce issues
  • Brief 3: Four-stage e-commerce development model
  • Brief 4: Benefits small businesses can gain from opening shop on the Internet
  • Brief 5: The Internet as an information solution
  • Brief 6: Determinants of the locus of global e-commerce
  • Brief 7: Are there any economic incentives to engage in electronic commerce, or is it just a fad?
  • Brief 8: Digital development in rural areas: potentials and pitfalls
  • Brief 9: Digital divide and purchase intention: Why demographic psychology matters.
  • Brief 10: Ethical issues in electronic commerce
  • Brief 11: One brand, three ways to shop.
  • Brief 12: The nature of and conditions for online trust
  • Brief 13: E-shopping in a multiple channel environment
  • Brief 14: The E-Marketing Mix: A Contribution of the E-Tailing Wars
  • Brief 15: Consumers shop to acquire items, and they shop for fun.
  • Brief 16: How companies use content and design features in their website.
  • Brief 17: Conceptualizing consumer experiences in cyberspace.
  • Brief 18: Cross-cultural and cognitive aspects of web site navigation
  • Brief 19: Managerial issues for international Web-based electronic commerce
  • Brief 20: Cultural context in multilingual website usability
  • Brief 21: Using corporate websites for export marketing
  • Brief 22: The measurement of web-customer satisfaction
  • Brief 23: Developing and validating trust measures for e-commerce
  • Brief 24: Designing effective cyber store user interface