The basic formula of the chosen model is similar to the CCR model (Charnes, Cooper, Rhodes)

:

s

u

j j

y

j=

=

1

max

q

t

i

v

i

x

i=1

The previous formulation cannot be solved by linear programming tools and therefore has to be 

transformed in the following equation which is an output oriented maximization example: 

s

t

max =

u

j j

y

 with constant input 

i

v

i

x = 1

j=1

i 1

=

s

t

j

u

j

y C

i

v

i

x

j=1

i=1

with s.t. 

j

u i 0 ,

i

v i 0

The second method used in the analysis is focused on the strategic goals of e commerce using 

firms, as defined in Kraemer et al., 1999. According to the four quadrant model developed by 

Kraemer, firms are asked about driving reasons and current application of e commerce in two 

different ways: the impacts on internal process optimization (operational focus to reduce costs) 

and external market penetration (market focus to enter new businesses or markets). In the 

original model, Kraemer used a seven point Likert scale where  1  indicates  do not agree  and 

 7  indicates  agree completely  to measure the degree of IT impact on the focused strategic 

goal. The model used in this paper is modified and uses a five point Likert scale. For example, if 

executives rated two or less on each item, they were assigned to the  unfocused  group since 

their responses suggested they had no discernible goal for information technology (IT). If 

executives rated three or above on the operational focus and two or less on the strategic market 

positioning, they were assigned to the  operations focus  group. Alternatively, if executives 

scored two or less on the first item, and three or above on the second item, they were assigned to 

the  market focus  group. If executives rated three or above on both items, they were assigned to 

the  dual focus  group. Based on executives' responses to these items, firms were assigned to 

one of four quadrants. 

E COMMERCE READINESS 

In spite of the downturn of the former euphoric developments and enthusiastic expectations 

about the new era called the  new economy  and in spite of the  bubble burst,  e commerce 

usage has become more routine. After the hype, substantial e commerce business models were 

implemented or reinvented by traditional non e commerce firms in the retail and wholesale 

distribution, manufacturing, and banking and insurance sectors. The ratio of e commerce sales 

rose to 0.98% of the German GDP, as the latest available figures for B2B and B2C revenues 

estimate for 2000. This is equivalent to the largest ratio or one third of total e commerce sales in 

continental Europe and looks promising for sustainable growth in the future (Table 2). 

9