operations are not electronically integrated with those of its customers or suppliers. The firm does not
require suppliers to make use of B2B e-commerce technologies.
Firm K started using B2B e-commerce in order to keep up with other firms and the applications have been
developed and promoted by its suppliers and customers. Since the introduction of B2B e-commerce the
firm has changed suppliers, but this has not helped to increase revenues or profits. The firm would use
B2B e-commerce more often if it was cheaper or more reliable. Seventy percent of the firm’s inputs are
acquired through the use of B2B e-commerce. The main products purchased are inks (Switzerland) and
accessories and fabrics (Hong Kong). A quarter of the firm’s international sales are supported by B2B ecommerce and the main products sold internationally to business customers are clothing in the UK, the
Netherlands and Switzerland.
FIRM L
Firm L was founded in 1972 in Nakuru4 and is involved in manufacturing yarn, fabrics and apparel.
Fabrics are the company’s most significant source of revenue, followed by apparel. The firm employs
700 workers and has an annual turnover of $ 4.0 million. The firm’s products are exported to the US, the
UK, East Africa Community and COMESA. Its inputs are obtained from India, Indonesia, Austria and
South Korea. The firm is connected using modem-based analogue equipment and has access to an
Intranet. The firm always uses e-mail to maintain contact with buyers and suppliers and frequently to
place or accept product orders. The firm seldom uses the web except occasionally to get general
information about input markets or product markets, to obtain information about specific customers, to
obtain information about specific suppliers, to accept orders from international business customers and to
place orders with international suppliers. The firm frequently uses an Extranet to accept orders from
international businesses customers and to place orders with international suppliers. It also It seldom uses
Electronic Data Interchange to accept orders from domestic business customers or from international
business customers, but frequently uses EDI to place orders with domestic and international suppliers.
The firm has never used the Internet to purchase or sell products internationally, even though it has
registered with web-based international trading sites. It also does not use the Internet for supply chain
management.
4
The firm's Executive Director, the son of the founder, is very comfortable with computer technology. He gives Power point
presentations at business meetings, uses e-mail regularly, and appears to be personally involved in upgrading the firm’s ICTs. He
does not rely exclusively on electronic communication but travels extensively to meet customers and suppliers face- to- face.
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