Towards a taxonomy for regulatory issues in a digital business ecosystem in the EU

This paper addresses the role of trust and regulation where small and medium-sized enterprises (SMEs) in the European Union make use of e-business in a digital business ecosystem (DBE). We argue that in order for digital business to develop among entrepreneurs in the EU and within different industry sectors and geographical locations, trust and regulation are of critical importance. The paper assesses the importance of this argument and focuses on the interplay of regulatory and trust-based issues that need to be accommodated before one can expect SMEs to engage in ebusiness supported within a DBE environment. It then presents a taxonomy that addresses key regulatory issues and fosters trust. The paper proposes the taxonomy as the vehicle for the simplification of a bewildering array of laws, standards, norms and expectations, as well as for the elimination of regulatory overlap and conflict. The contribution of the taxonomy is demonstrated in the last section of the paper, where it is empirically tested and applied to SMEs which participated in the EU funded DBE project.