Business-to-government e-commerce or B2G is generally defined as commerce between
companies and the public sector. It refers to the use of the Internet for public
procurement, licensing procedures, and other government-related operations. This kind
of e-commerce has two features: first, the public sector assumes a pilot/leading role in
establishing e-commerce; and second, it is assumed that the public sector has the
greatest need for making its procurement system more effective.15
Web-based purchasing policies increase the transparency of the procurement process
(and reduces the risk of irregularities). To date, however, the size of the B2G ecommerce
market as a component of total e-commerce is insignificant, as government
e-procurement systems remain undeveloped.
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