• Information Systems Review
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• v.10 no.3
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• pp.1-20
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• 2008

Under the rubric of the new economy, a wide variety of economic and social phenomena have been identified and discussed since the 1990's. Most of the observations in the literature on the new economy are fragmented, casual, and anecdotal, not compiling to a whole picture of what the new economy is really about. Therefore, this study attempts to provide e-commerce companies with a better, more systematic understanding of the new economy and new economy phenomena as well as the implications of them in order to help them develop more effective business strategies. To provide a better understanding of the new economy phenomena, this article adopts system perspective as an overarching frame of reference for analysis. The systemic characteristics and behavior of the new economy is sought in five generic aspects of a system; 1) what are the entities that comprise the system, and how are they related to one another?; 2) how does the system function?; 3) what are the goods and services (output) that are generated and flow in the system?; 4) what is the value of those goods and services?; and 5) what are the collective, systemic quality and attributes of the system? Based upon the review and categorization, some essential characterizations are made for the five system aspects of the new economy. Such characterizations are interpreted as collectively enunciating the systemic characteristics and behavior of the new economy. The implications of the systemic under-standing of the new economy for business and firm strategy are discussed and some future research is suggested.