Whither business-to-business electronic commerce in developing economies? The case of the South African manufacturing sector

Abstract

Business-to-business electronic commerce has become a priority area for many international development organisations, particularly since concerns about the ‘digital divide’ have put the policymaking spotlight on the connection between ICTs and industrial development policies. This paper aims to explore the current state and likely future direction of B2B e-commerce in the South African manufacturing sector. The empirical research is based on 120 firm-level interviews, and 31 personal interviews with industry experts. The results suggest that B2B e-commerce is in an embryonic stage in the South African manufacturing sector, and technology and market dynamics are still casting its basic shape. The ability to realise efficiency gains in the B2B electronic marketplace will largely hinge on the climate of confidence and trust that businesses are able to create in their relations with their suppliers and customers. We argue that policy decisions will have a major impact on the kind of environment in which e-commerce will develop and should therefore be crafted with due recognition of its fragile and evolving nature.