The Role of Intermediaries in e-Distribution System Dynamics Approach

Failure of dotcom companies, after 1990s’ rapid boost, raise many questions about e-Business solutions in commercial performance. The aim of this paper is to investigate the role of intermediaries in the new business environment. It is suggested that in the traditional trade models, intermediaries have a hidden role while just analyzing goods and money data and transferring the knowledge to both parties. Electronic business suggests a direct producer-consumer relationship. This can cause an immediate transfer of unfiltered data between both ends of the chain. We show here that intermediaries can manage the knowledge and help both sides to decide efficiently the level of production and transaction.