Affiliations: Industrial Restructuring Programme, School of
Development Studies, University of Natal, Durban, 4041, South Africa. Tel.:
+27 31 2602241; Fax: +27 31 2602359; E-mail: Moodleys58@nu.ac.za
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.