E-business paradigm completely changes the form of traditional business processes. Many manufacturing companies are beginning or planning to transform existing purchasing processes into the electronic marketplace. While past studies show several possible forms of electronic marketplace, they failed to help system implementers design information systems. The objective of this thesis is to propose a model for implementing electronic procurement strategies that can be adopted to build information systems. The model is built on the basis of two major purchasing factors: relationship costs and purchasing process complexity. The model is applied to a Korean electronic company to illustrate its practical usefulness.
