The purpose of this article is to examine how electronic commerce can fundamentally change the inter‐organisational processes at the interface between the buyer and supplier.
First, an overview is provided of the evolution of B2B commerce and the typical business models that have been developed. Second, a number of factors are identified which impact on the buyer‐supplier interface in B2B commerce. Finally, the conclusions will examine the implications for managers involved in B2B commerce who have to interact across organisational boundaries.
Electronic commerce not only enables the redesign of internal organisational processes but is extended into both the buyer and supplier organisations. Innovations in electronic commerce have a key role to play in managing inter‐organisational networks of supply chain members. It is also found that in many instances electronic commerce is radically changing the way in which organisations have traditionally traded. As well as impacting the external trading arrangements between buyers and suppliers, electronic commerce is also affecting the traditional roles of the functions involved in managing the buyer/supplier relationship.
It is essential for top management to understand that the internet is more than a tool or technique, but rather something that is woven into the fabric of the organisation and the relationship with its environment. Adopting such an approach represents a drastic change from traditional management thinking and, more importantly, for management's behaviour.
This paper provides an improved understanding of how the internet represents a powerful technology for commerce and communication at the buyer‐supplier interface. This will be a useful insight for academics and practitioners alike.
