Value Creation in B2B E-Markets of China: A Practical Perspective

In China, the development of e-market has unique characteristics in the transactional processes and market mechanisms, which relate largely to the current industry structure, financial infrastructure and organization structure. This paper seeks to develop a conceptual model of B2B e-market value creation strategy, and can also be used to highlight the complexity of such activities for Chinese B2B e-markets. A process-oriented approach to modelling the value of e-market, rather than strategic position theory or a simple descriptive approach, is found to be more suitable and has been selected. The model consists of two dimensions: the e-commerce process and the controlling complexity. We apply the model in an actual Chinese B2B e-market (Alibaba.com). The crucial value creation activities and strategies in the four phases of e-commerce process are identified, and the controlling complexity of these activities is evaluated in the model. The model offers an effective approach to study the dynamic structure of transactional processes and bring into light the special issues of e-market development in China. Managers can resort to the model to offer more value to their customers by designing an effective e-market process.