The implications of Western electronic commerce for Chinese business networks

Examines the application of electronic commerce (EC) in a cross‐cultural context. The problems likely to be encountered by a Chinese organization are analysed and interpreted in terms of conflicting cultural values. The costs associated with EC are also analyzed and two new costs, technology and competition, are introduced. The costs are classified according to the traditional market and the EC market and also by the coordination mechanism. While Chinese firms are showing considerable enthusiasm for EC, it is felt that they may not yet be ready to undertake the major organizational developments and re‐engineering efforts required to successfully implement EC. EC will also present Chinese managers with faceless transactions which may conflict with current cultural values.