Business-to-business E-business Models: Classification and Textile Industry Implications

Since the introduction of the Internet and e-commerce in the mid-1990s, there has been a lot of hype surrounding e-business, the impact that it will have on the way that companies do business, and how it will change the global economy as a whole. Since the crash of the dotcom companies in 2001, there has been much less hype surrounding the use of the Internet for business. There seems to have been a realization that e-business may not be the answer to all of a company’s problems, but can be a great asset in the struggle to increase efficiencies in daily business dealings, and that the Web is primarily a new way of relating to customers and suppliers. This paper categorizes and discusses the different types of business-to-business electronic business models currently being used by businesses and discussed in the academic literature, and shows how these business models are being implemented within the textile industry. This paper is divided into three parts. Part I gives an overview and some important definitions associated with businessto-business e-business, and discusses some characteristics that are unique to doing business on the Internet. Risks and benefits associated with doing business online are also discussed. Part II analyzes the different types of e-business models seen in the academic literature. Based on the analysis of the literature, a taxonomy of e-business models was developed. This new classification system organized e-business models into the following categories: sourcing models, ownership models, service-based models, customer relationship management models, supply chain models, interaction Models and revenue models. Part III reviews how these e-business models are currently being used within the textile industry. A preliminary analysis of 79 textile manufacturing companies was conducted to identify the applications of e-business.