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The impact of e-business on the demand-driven management: an empirical study in China

Zhen Zhu and Jing Zhao

International Journal of Networking and Virtual Organisations, 2010, vol. 7, issue 6, 560-580

Abstract: To meet the needs of increasing customisation, it is better for organisation to shift focus from supply-driven to demand-driven. However, the role of e-business in this trend remains unclear. From the e-business processes perspective, we present two models: a supply-driven model and a demand-driven model. Drawing from a sample of 105 traditional companies in China, we provide a comparison analysis to illustrate the impact of e-business on the demand-driven management using structural equation modelling (SEM). The results provide strong overall validation for the trend from supply-driven to demand-driven and show that companies with high level of e-business are good at demand-driven management. More companies with demand-driven strategy will improve demand integration through adopting e-business in ordering and CRM process. The results of this study will help managers understand the importance of e-business in improving responses to the needs of market and customers.

Keywords: demand-driven management; supply-driven management; e-business; electronic business; demand integration; China; customisation; structural equation modelling; CRM; customer relationship management. (search for similar items in EconPapers)
Date: 2010
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