Question Jermain Business & Management

What are the sustainability dimensions of e- commerce as a prevailing business model?

What are the sustainability dimensions of e- commerce as a prevailing business model?

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Answer Expert #27044

The appealing business model of e-commerce is noted for the extensive convenience offered to customers, implying high dependence on service. Organisations utilising the medium of e-commerce are focused on offering an optimal mix of tangible and intangible services, which is considered an important strategy to inform value (Chen and Zhang, 2015). As a result, customer value appears co-created due to the substantial efforts of businesses and consumers in establishing a seamless experience in various e-commerce products. At this point, implementing sustainability has become a significant concern for e-commerce businesses, as running eco-friendly businesses is directly related to increasing customers’ interest in particular products and services (Shao and Cai, 2005). It has become important to frame sustainability for the e-commerce sector as part of the overall objective to expand customers’ loyalty to certain brands. In this way, e-commerce companies are focused on the environmental impact produced as a result of their businesses. From this perspective, it can be expected that this type of commerce will decrease prices and boost consumption patterns. Yet, the importance of the information economy should not be disregarded when it comes to the sustainable development of e-commerce (Shao and Cai, 2005). The digital divide appears more substantial upon considering the social aspects of sustainability in relation to the field of e-commerce. Exploring the patterns of e-commerce should be conducted in a more holistic manner, since this is a quite new business model having important financial implications for the companies utilising it (Yao and Tan, 2010). It has been pointed out that the mode of electronic affairs is represented in the ongoing process of strengthening the coordination between upstream and downstream enterprises found in the supply chain. In this way, it has become possible to promote extensive cooperation between enterprises.

References

Chen, Q. Zhang, N. (2015). Does e-commerce provide a sustained competitive advantage? An investigation of survival and sustainability in growth-oriented enterprises. Sustainability. 7(1) 1411-1428.

Shao, J. Cai, Z. (2005). Empirical research for the effect of electronic commerce initiatives on firm performance. Science, Technology, and Public Policy. 11(1) 162-165

Yao, G. A. Tan, Z. (2010). The impact of experience in maintaining customer trust in e-commerce enterprises. Nankai Business Review. 1(1) 99-107.