Implications of Information and Communication Technologies for Business Relations

The analysis addresses the issues of how businesses interact in the light of continuous maturation of business-to-business e-commerce. The development of cheaper and more standardised information and communication technologies (ICTs) extends and deepens electronic networks, which may lead to either tighter or looser business relations. Previous analyses have offered different suggestions as to what will result: one view is that tighter connections will evolve leading to electronic hierarchies, whereas another is that the loose transaction-based interactions from the market sphere will dominate. Studies of the value chains in textile and clothing suggest mixed answers. Developments in ICTs and e-commerce offer differ-ent opportunities to different segments of the industry. 1