Applying the Technique of Decomposition to Measure E-Commerce Performance

Document Type

Conference Proceeding


Faculty of Business and Public Management


School of Business




Fink, D. (2003). Applying the Technique of Decomposition to Measure E-Commerce Performance. In Proceedings of Business Excellence I: Performance Measures, Benchmarking and Best Practice in New Economy. Braga, Portugal: School of Engineering - University of Minho.


The technique of decomposition appears intuitively well suited to solving the problem of developing performance measures for e-commerce. To produce a meaningful measure of performance necessitates e-commerce values are decomposed into lower levels until a "succinct statement" can be made about the value that e-commerce produces. The paper identified value constructs and value variables for six e-commerce applications, which were determined by their "internal/external to the business" nature and focus on "customer/business". The paper concludes that although there is large agreement on the key values obtained from e-commerce, it is difficult to achieve the degree of integrity required by the decomposition technique. There are two key challenges to be met, namely achieving value splicing and functional integrity. It is proposed that this further research be conducted in this important area of business activity.

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