EVALUATING THE IMPACT OF SUPPLIER PARTICIPATIONON INVESTMENT STRATEGIES OF BUYER-BASEDB2B E-COMMERCE SYSTEMS USING GAME-BASEDOPTION VALUATION ANALYSIS

摘要

Companies that seek to build buyer-based B2B e-commerce systems face a challenge to estimate the investmentrnvalue while the attitude of suppliers toward the participation is full of uncertainty. This research provides anrngame-based option valuation approach that clarifies the uncertainties of each investment timing strategies byrnanalyzing the expected revenue, cost, project risks, and time to the market for both buyers and sellers, whichrnthe buyer can take as a guideline while designing the B2B e-commerce systems. Although the potential of optionrnpricing models on evaluating IT value is discussed in prior literature, the models are never applied tornevaluating the investment strategy, which the success of the investment depends on the participation of multiplernparties. The model developed examined the effect of counteractions between the supplier and the buyerrnunderlies a number of findings with potential to assist managers designing a iewin-winli investment strategy.