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Cybercrime
Business organizations and consumers face major economic damages and increased threats when the underlying information infrastructure is targeted or made vulnerable by unethical, illegal Internet activi-WLHV&\EHUFULPHLVEHFRPLQJPRUHZLGHVSUHDGDQGDWLPHO\UHYLHZRIH[LVWLQJDSSURDFKHVWR¿JKWLQJ various forms of cybercrime is vital for the growth of e-business. Some of the cybercrimes include QHWVSLRQDJHWKHIWRIFRQ¿GHQWLDOLQIRUPDWLRQHWKHIWFUHGLWFDUGIUDXGIUDXGXOHQWLQWHUQHWEDQNLQJ sites, cyber-terrorism, cyber-piracy, and viruses.
The characteristics of cybercriminals, cybercrime victims, and law enforcement agencies have a re-inforcing effect on each other, leading to a vicious circle of cybercrime (Kshetri, 2006). Approaches to ¿JKWLQJF\EHUFULPHDUHOHJDORUJDQL]DWLRQDODQGWHFKQLFDO*LYHQWKHGLYHUVLW\RIFXOWXUDODQGEXVLQHVV practices in different regions of the world, business organizations and law enforcement agencies need to develop global cybercrime prevention and detection programs standards and a comprehensive ethics policy. As the global nature of e-business accelerates, it will be also of great importance to promote common ethical standards and practices across different countries on the Internet.
MANAGERIAL IMPACT OF ELECTRONIC BUSINESS
This section discusses e-business strategies and value creation opportunities.
E-Business Strategy
7KHGLJLWDOHFRQRP\SUHVHQWHGQXPHURXVRSSRUWXQLWLHVDQGFKDOOHQJHVIRU¿UPVOHDGLQJWRWKHHPHU-gence of new business models, innovative technologies, strategies, and management practices (Thomson, 2006). As the e-business environment becomes more complex economically, socially, politically, and OHJDOO\LWLVLPSHUDWLYHIRU¿UPVWRGHYHORSHEXVLQHVVVWUDWHJLHVWKDWFRXQWHUWKHFRPSOH[LW\LQWKHLU HQYLURQPHQW)XUWKHUPRUHLQWKHFXUUHQWJOREDOSROLF\ODQGVFDSHIHZ¿UPVFDQDIIRUGWRLJQRUHJOREDO policy frontiers, and therefore need to proactively employ theories and methods integrating policy with market and technology issues (Jarvenppa & Tiller, 1999).
Developing a sound e-strategy should be based on the enterprise plan, business strategy, and enter-prise information technology plan. Firms need to understand failure factors as well as success factors to counteract the forces that discourage the growth of e-business. A number of strategy development models have been suggested to formulate e-strategy including SWOT (strengths, weaknesses, opportunities, WKUHDWVDQDO\VLV0F&DUWK\¶VIRXUPDUNHWLQJPL[PRGHODQG3RUWHU¶V¿YHFRPSHWLWLYHIRUFHVPRGHO )LYHHVVHQWLDOVWHSVIRUIRUPXODWLQJHFRPPHUFHEXVLQHVVPRGHOVDQGVWUDWHJLHVLQFOXGHUHGH¿QHWKH competitive advantage; rethink business strategy; re-examine traditional business and revenue models, re-engineer the corporation and Web site; and re-invent customer service (Lee, 2001). Realization of RSHUDWLRQDODQGVWUDWHJLFEHQH¿WVZDVIRXQGWREHFRQWLQJHQWRQHIIHFWLYHDVVLPLODWLRQRIHEXVLQHVV innovation, top management championship, strategic investment rationale, and extent of coordination (Chatterjee et al., 2002).
Value Creation Opportunities
7KHYDOXHFUHDWLRQSRWHQWLDORIHEXVLQHVVHVKLQJHVRQIRXULQWHUGHSHQGHQWGLPHQVLRQVHI¿FLHQF\ complementarities, lock-in, and novelty (Amit and Zott, 2001). To explain the value creation potential
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of e-business, an integration of the received theoretical perspectives on value creation is needed and a ¿UP¶VEXVLQHVVPRGHOLVDQLPSRUWDQWORFXVRILQQRYDWLRQDQGDFUXFLDOVRXUFHRIYDOXHFUHDWLRQIRUWKH ¿UPDQGLWVVXSSOLHUVSDUWQHUVDQGFXVWRPHUV
.LFNXODQG*XQGU\H[DPLQHGWKHLQÀXHQFHRIPDQDJHPHQWGLYHUVLW\DQGFUHDWLYLW\RQRS-portunity assessment for e-commerce organizations, and on innovative internal and external managerial relationships and practices. Opportunity assessment for e-commerce organizations mediates the effects RIPDQDJHULDOGLYHUVLW\DQGFUHDWLYLW\LQÀXHQFLQJWKHDGRSWLRQRILQQRYDWLYHSUDFWLFHVWKDWIRFXVRQ employee relationships, external networks, and new products and services.
The role of technological opportunism in the context of e-business adoption was studied to under-VWDQGZK\VRPH¿UPVDGRSWUDGLFDOWHFKQRORJLHVWRFKDQJHWKHLUEXVLQHVVPRGHOVZKLOHRWKHU¿UPVDUH reluctant or unable to do so (Srinivasan et al., 2002). Technological opportunism is a capability that RUJDQL]DWLRQVFDQGHYHORSE\WDNLQJVSHFL¿FDFWLRQVVXFKDVIRFXVLQJRQWKHIXWXUHWRSPDQDJHPHQW advocating new technologies, and by becoming more of an adhocracy culture and less of a hierarchy FXOWXUH7KHVWXG\VXJJHVWVWKDWWHFKQRORJLFDORSSRUWXQLVPRIIHUVDVLJQL¿FDQWLQFUHPHQWDOH[SODQDWLRQ of technology adoption over and above those offered by existing constructs.
CRITICAL ISSUES IN ELECTRONIC BUSINESS
This section discusses privacy and security issues and channel coordination issues.
Privacy and Security Issues
Online privacy policies typically include an organization’s practices on customers’ data collection, access, disclosure, and disposal. Consumers refer to website privacy policies to decide on the data pro-vision, search activities, and purchasing decisions. Due to technological, managerial, and legal issues of privacy and security, corporate online privacy and security have been a subject of in-depth study LQFOXGLQJSULYDF\SROLFLHVVHFXULW\WUXVWDQGHFRPPHUFHDGRSWLRQ
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