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By Frederick Winthrop Faxon

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Fig. 5. 3 lntroduction of managing directors and "company" system Some of Japanese leading companies like NEC and Sony introduced a new practice of managing directors and "company" system which means a company within company. Active arguments about corporate govemance were made by managers and academics on the occasion of corporate 29 scandals and bankruptcy of banks and security companies. Some companies shifted their target from stable stock-holders to active stock-holders to keep friendly investor relationship.

While self generated solutions are generally considered tobe very expensive this is not true on the Web. Here, companies can work with solutions that have been developed by the founders requiring only small amounts of money. Companies belonging to the group of integrated units and to those working with outside capital were less satisfied with their profitability which could partly be due to another aspiration Ievel. In addition, companies that went online early are more satisfied. This can be explained by the Ionger period in which they could reach break-even.

The relationships described so far represent a structural equation modelthat is given in Figure 2. 4 Empirical study and data In order to test empirically the relative importance of the various success factors and to examine whether a start-up or an integrated unit within an established company is the better organizational solution, we have distributed a questionnaire via email (in a few cases also by fax and surface mail) to 590 companies. We obtained the addresses ofthe companies with the help of an online-search for phrases like e-commerce, start-up, onlineshop etc.

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A Bibliography of the Modern Chap-Books and their Imitators by Frederick Winthrop Faxon


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