STRATEGIC OUTSOURCING OF e-BUSINESS VENTURES

This paper derives a conceptual framework on the virtual value web extending the existing literature on strategic alliances and partnership outsourcing to the Internet business. An empirical test on Internet ventures is presented next. The empirical study analyzes the determinants of the outsourcing level for Internet ventures. The survey data was collected from 80 Korean e-business startups having various business models such as click-and-mortar, intermediary/auction, and portal/information services. The results show that the outsourcing level is significantly influenced by strategic goals, outside financing (negative), product innovations, and supplier competition.