The Internet creates new network structures that enable firms to integrate cross-functional activities at relatively low cost and eliminate non-value-adding activities. However, there is little empirical evidence on how structural characteristics of network organization and the Internet affect service responsiveness and firm performance.
Network structures are further enhanced through four Internet drivers of open systems, virtual channels, multi-user engagement and extended customizability. This alters the ways firms coordinate their activities through responsive processes and complements existing structures with relevant Internet capabilities.