Risk Analysis of B2B Systems in Book Supply Chain from the Perspective of Information Processing Needs

Abstract

This research applied the information processing theory to evaluate the risks that are associated with B2B systems of book supply chain. Hypotheses were proposed to examine the relationships between the risks of information processing needs and the performance of B2B systems. Understanding these relationships can help companies to prioritize their task of risk reduction in a performance-driven environment of book supply chain. Our proposed hypotheses were tested upon the companies listed on the memberships of the Chinese Book Marketing Development Association. Empirical findings indentified the risk factors of Demand, Supply, Best-Selling Books, Trust, Firm Investment, and Supplier Investment from the perspective of information processing needs regarding B2B systems in book industry. While lower risk of Demand factor can produce better performance of satisfaction, new business opportunities, cost reduction, and operational efficiency from B2B systems, risk reduction on the factors of Best-Selling Books, Firm Investment, and Supplier Investment are unable to produce better performance from B2B systems. Besides, if the performance of corporation images and partnership are the most critical concerns of book supply chain, companies need to reduce the risk of Trust factor according to our findings. Finally, the companies with low risk on the factor of Supply generally can have better performance of turnover and market share from B2B systems than the ones with high risk.