222 Chapter 8 Discussion Introduction This chapter reflects on the ...

addition, agents that do not survive in the simulation always have the lowest technical
competence level. Market share is closely related to price, but due to variability in
intermediary mark-up, agents with large sales are not necessarily the most profitable.
Simulation results seemed to support the analysis of the fieldwork. Some
intermediaries having low technical knowledge might not survive in a value chain
augmented by Internet technology; increasing competition would make it difficult for
them to remain profitable.
Bearing in mind the earlier literature on adoption of EDI technology, research
questions centring upon diffusion of e-commerce systems were investigated. The
fieldwork showed that, most importantly, the onus was on the manufacturer to
describe the possibilities of EC to the customers, and to make it attractive for them to
adopt. A heavy reliance would be laid upon the different support strategies that were
available to the company. The study revealed these incentives or ‘drivers’ of e-
commerce, along with a number of inhibitors, largely result from technical and
organisational under-preparedness of the customers and distributors. Clearly if the
manufacturer does take into account such obstacles to diffusion, the customers will
not be able to engage effectively in EC and hence the value chain will under perform.
These factors were then later incorporated prominently in the simulation model as
customer perceptions and beliefs. The model was intended to be representative of the
case study situation, and was reliant on the input of the stakeholders for establishing
the validity of the mapping between model and target system. Simulation experiments
were carried out to investigate the issues surrounding the e-commerce initiative and to
develop understandings of those scenarios.
The model was also based on the assumption that social influence plays an important
role in the attitude formation of potential users of the e-commerce system. Scenario
analysis carried out with the model suggested that a simple customer-customer
referrals process can produce a strong effect in influencing agents’ choice of supplier
that can ultimately drive high levels of inequality in market share for intermediaries,
as well as changes in levels of adoption and use of e-commerce.
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