EVALUATING THE IMPACT OF SUPPLIER PARTICIPATION ON INVESTMENT STRATEGIES OF BUYER-BASED B2B E-COMMERCE SYSTEMS USING GAME-BASED OPTION VALUATION ANALYSIS

摘要

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