Analysis of E-commerce innovation and impact: a hypercube model

Department of Information Management, National Sun Yat-Sen University, 70 Lien-Hai Road, Kaohsiung 80424, Taiwan
Electronic Commerce Research and Applications (Impact Factor: 1.48). 12/2004; 3(4):389-404. DOI: 10.1016/j.elerap.2004.05.002


Electronic commerce (E-commerce) innovating applications have posed novel, technical, organizational and commercial challenges. This study uses a hypercube model to investigate these innovative changes and focuses on their impacts on E-commerce stakeholders: providers, E-commerce companies, customers, and complementors. The results indicate that mobile commerce (M-commerce) differs substantially from Web-based commerce in some technological components, yet both share common business model. However, from Web-based to M-commerce, innovation is architectural for customers and E-commerce companies, but a radical change for complementors. From M-commerce to U-commerce, innovation is modular to customers, architectural to complementors and radical to E-commerce companies and providers. Thereafter, the critical impacts of E-commerce innovations on the stakeholders are identified.

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    • "The second stream of theoretical research focuses on the innovation potential of the 'extrovert' Internetbased e-business IS, concluding that they can be drivers and enablers of radical innovations of firms' processes, products, services and business models ([19], [32], [48], [50], [58], [59], [61], [69], [70], [73]). [61] and [58] describe several new and highly disruptive business models driven by the Internet, which can deeply transform many industries and markets. "
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    • "Zwass (2003) identifies eleven categories of innovation opportunities provided by the Internet, which are associated with access to and creation of marketplaces, supply-chain linkages, networks of relationships, collaboration with business partners, communities of knowledge exchange, use of interactive media, delivery of goods and services, anytime-anywhere connectivity, development platforms, telecommunications networks and computing utility. Wu and Hisa (2004 and 2008) argue that e-commerce can drive extensive innovations that change the both core components of the products and the business model, which can be categorised into four groups: incremental innovations (no significant changes in products' core components and the business model), modular innovations (considerable changes in products' core components but not in the business model), architectural innovations (considerable changes in the business model but not in products' core components) and radical innovations (considerable changes in both products' core components and business model). Tavlaki and Loukis (2005) call for a more systematic approach to the exploitation of the extensive innovation capabilities that electronic channels (such as the Internet) offer for the design of new business models, and propose a methodology for this purpose. "
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    • "However, from M-commerce to U-Commerce, the changes are disruptive and occur in the dimensions of both technological and business models. In earlier work, Wu and Hisa (2004) used a hypercube model to explore the technical, organizational and commercial challenges posed by E-commerce innovating applications. It was found that while M-commerce differs substantially from Web-based commerce in some technological components, both share common business models. "
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