Title: Explaining dotcom failures: a congestion framework

Authors: Nikhilesh Dholakia, Anil M. Pandya

Addresses: College of Business Administration, University of Rhode Island, 7 Lippitt Road, Kingston, RI 02881, USA. ' Northeastern Illinois University, 5500 N. St Louis Avenue, Chicago, IL 60625, USA

Abstract: Dotcom companies sometimes became victims of internet congestion. This paper proposes a theoretical framework about the role of congestion in early Business-to Consumer (B2C) failures. We extend the research on dotcom failures, which has focused on managerial responsibility as the cause of failure. We propose that rising customer flows have led these firms to experience negative externality. We illustrate congestion effects and discuss the strategies to combat such effects. Congestion effects are likely to recur and the paper identifies research challenges to study and counter such effects.

Keywords: electronic business; business-to-consumer; B2C; dotcom failure; e-commerce; m-commerce; internet congestion; negative externality; positive externality; strategy; mobile commerce.

DOI: 10.1504/IJEB.2007.012289

International Journal of Electronic Business, 2007 Vol.5 No.1, pp.22 - 41

Published online: 02 Feb 2007 *

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