Abstract The development of B2B in China lags its western counterparties. Although previous researchers have addressed the reasons for the underdevelopment of Chinese B2B, but their arguments treat different B2B as an undifferentiated entity, as well as lacking theoretical foundation. Based on institution theory, this paper tries to develop an integrative framework by incorporating organizational absorptive capacity theory, to guide us in seeking the key barriers of B2B development. The conclusions include, first, institutional forces that shape B2B structure forms key barriers to the development of aggregation based B2B, whereas weak organizational IT absorptive capacity, determined by previous IT knowledge and transaction institutions delay the development of supply chain based B2B.
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Received: 09 May 2007
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Corresponding Authors:
Zheng Shi
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