Extending Chakravarthy's strategy framework to cope with constrained and unstable environments: Imitative catching-up e-commerce at Patagon.com

Most of the extant electronic commerce (EC) models implicitly assume a deve loped country environment that is technologically advanced and information rich, with a stable, nondisruptive political and economic climate that favo rs free markets, and with unconstrained access to technological, financial, and human resources. Unfortunately, these are not features found in most l ess-developed country environments. This study empirically analyzes the history of Patagon.com, a pioneer in La tin American Internet-based financial services. Its primary contribution is to extend Chakravarthy's strategy framework for coping with turbulence to conceptualizing imitative catch-up electronic commerce strategy in constrai ned and unstable environments, such as those in less-developed countries. T he case analysis also suggests some practical implications that should help to better understand how organizations that are not pioneers of novel brea kthroughs in developed countries can participate in electronic commerce.