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The main purpose of this research is to study the impacts of electronic commerce (e-commerce) applications on the organizational performance of the Indian small and medium enterprises (SMEs). There are many different types of e-commerce applications that may influence the organizational performances; in this research, they are categorized into five...
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... (Lawal, 2010). Fewer mistakes occur in paperwork because fewer people handle the data. Customer satisfaction is heightened due to better access to order and promotional data. The old rules are breaking down. Companies now share information with competitors, producing “competition”. Suppliers and buyers share information: Economic and cultural boundaries are disappearing – in some market segments businesses must be global (Johnson, 2003). Organizational performance is probably the most widely used dependent variable in organizational research today yet at the same time it remains one of the most vague and loosely defined constructs (Rogers et al., 1998). Measuring organizational performance is difficult, especially when what has to be measured keeps changing (Hubbard, 2006). Many small and medium-sized enterprises are becoming ever more focused on their organizational performance. Organizational performance comprises the actual results or output of an organization as measured against its intended results or outputs. Typically, there are different ways to characterize various types of organizational performance in small and medium sized enterprises. Dyer and Reeves (1995), proposed four possible types of measurement for organizational performance in small and medium-sized manufacturing firms: 1) Human resource outcomes (job satisfaction, absenteeism, turnover), 2) Organizational outcomes (quality, productivity, service), 3) Financial accounting outcomes (return on assets, profitability) and 4) Capital market outcomes, (stock price, growth, returns). Pierre et al. (2009) argued that organizational performance encompasses three specific areas of firm outcomes: (a) Financial performance (profits, return on assets, return on investment, etc.); (b) Product market performance (sales, market share, etc.); and (c) Shareholder return (total shareholder return, economic value added, etc.). According to Shaker and Basem (2010) organizational performance indicators from relationship marketing perspective include: Increasing market share, retaining current customers, attracting new customers, creating loyal customers, increasing profit, Increasing return on investment, positive image. Venkatrman and Ramanujam (1986) argued that organizational performance have three dimensions: Financial performance, operational performance, and stakeholder performance. According to literature review, most common types of organizational performance measures that are use in recent empirical researches are: Financial or accounting performance, operational performance and market-based performance (Combs et al., 2005; Brealey et al., 2001; Helfert, 1994; Higgins, 1995; Penman, 2001; Carton and Hofer, 2006) (Figure 1). Performance is usually assessed with accounting-based measures (for example, profitability measures such ...
Citations
... So that Vijay R. Kannan's research is in line with this study. There are 3 dimensions in measuring company performance, namely financial performance, operational performance, and market share (Jahanshahi et al., 2012). This study only uses the operational performance dimension where there are 5 dimension indicators. ...
... There is a positive and significant influence between the variables SCM, TQM and JIT on company performance and the results obtained TQM on operational performance has a negative effect (Kannan and Tan, 2005). Company performance is assessed based on 3 dimensions, namely financial performance, operational performance, and market share (Jahanshahi et al., 2012). With the reason that the research field is specifically operational management, the researcher focuses on operational performance only. ...
Purpose: This research aims to empirically determine how much influence supply chain management, strategic process, and total quality management have on the company's operational performance, both partially and simultaneously. Methodology/Approach: The study involved eight manufacturing companies in Bandung and focused on 104 operational employees. It used descriptive and verification analysis with a path analysis approach, and data were collected through questionnaires via purposive sampling and the Slovin formula. Findings: The results show that 1) Supply Chain Management (SCM) and Strategic Processes (SP) positively impact total quality management and operational performance, 2) Total Quality Management (TQM) negatively affects operational performance, and 3) supply chain management has the greatest influence on both. Research Limitation/Implication: Future research should expand the sample size or include companies from different regions and industries to improve external validity. Originality/Value of paper: This study emphasises the importance of supply chain management, strategic processes, and TQM in operational performance, with supply chain management being the most crucial factor for quality management and improved performance.
... For most profit-oriented organizations, organizational performance mainly refers to improved customer satisfaction, market share, annual return, and so on (Jahanshahi, 2012). For organizations where social goals predominate, financial success may be an aspect to consider (Sawhill & Williamson, 2001), but other aspects are especially relevant. ...
This research examines whether employees’ perceptions of service climate are related to organizational performance oriented toward improving the quality of life (QoL) of people with intellectual disability (ID) through the mediation of service quality perceived by family members. The research was conducted in 252 centers for people with ID in Spain. Employees ( N = 2.021) reported on service climate. Family members ( N = 2.267) reported on service quality and organizational performance oriented toward improving QoL. We used an overall measure of service climate. Service quality was composed of two dimensions: functional (efficiency in the delivery of the core service) and relational (quality of the social interaction between employees and service users beyond the core service) service quality. Organizational performance oriented toward QoL was composed of four dimensions: overall QoL; self-determination; social inclusion; and defense of rights of people with ID. Results supported full mediation, with functional and relational service quality mediating the relationship between service climate and performance oriented toward improving QoL. Implications for research and organizations are also discussed.
... E-commerce has a significant impact on the performance of the electronic trade industry (Jahanshahi et al. 2012) and the performance of small and mediumsized enterprises (Alzahrani, 2019). E-commerce has a significantly positive impact on the performance of the microfood and small non-food industries, enhancing market access while boosting revenue and profitability for these sectors (Silaban et al. 2024). ...
... These findings aligned with previous research showing that e-commerce significantly impacted the performance of the electronic trade industry and small and medium-sized enterprises. E-commerce enhanced market access, revenue, and profitability for sectors such as microfood and small non-food industries (Jahanshahi et al. 2012;Alzahrani 2019;Silaban et al. 2024). This evolution, driven by the fourth industrial revolution, reshaped the retail sector and created new markets (Fakhrurrazi et al. 2022;Wijaya and Hidayati 2024), with factors like seller type and digital platform membership duration influencing sales (Unggara et al. 2021). ...
Background: The extent of digital transformation among Indonesian businesses is varied, highlighting the need for an in-depth examination of the characteristics of e-commerce. Purpose: The purpose of this study is to examine the diversity of Indonesian e-commerce business models. design/methodology/approach: The microdata set from the 2023 e-commerce survey was officially obtained from BPS-Statistics Indonesia. This study focuses on wholesale and retail trade and motor vehicle repair (Category G). After data cleaning, our analysis included 11,345 businesses. Cluster analysis categorized e-commerce into distinct business models based on business profiles, innovative activities, and performance. Additionally, one-way ANOVA was employed to reveal significant diversity among these Indonesian e-commerce models. Findings/results: Five distinct business models were identified, each characterized by unique features. Business Model 1 includes business to customer (B2C) sellers with substantial offline revenue. Business Model 2 encompasses small-scale B2C sellers who focus on direct sales and also achieve significant offline revenue. Business Model 3 involves micro e-commerce sellers engaged in both B2C and business to business (B2B) transactions using traditional payment methods. Business model 4 consists of small B2B and B2C sellers with limited digital integration. Business Model 5 features marketplace-driven micro e-commerce sellers employing a hybrid approach. conclusion: Our examination of Indonesian e-commerce business models revealed distinct clusters, each with varying roles, customer types, payment methods, internet usage, and revenue sources, highlighting significant variability in e-commerce strategies. originality/value (state of the art): The originality of this study lies in its analysis of diverse Indonesian e-commerce business models to identify distinct types based on key characteristics.
... Enhancing organizational performance through technology tools involves leveraging digital solutions to improve various aspects of a firm's operations. Jahanshahi (2012) infers that financial or accounting performance, operational performance, and market-based performance measures contribute to enhancing firm outcomes via automation and efficiency, data analytics, and financial planning and forecasting. It measures standard or prescribed indicators of effectiveness, efficiency, and environmental responsibility, which allow researchers and managers to evaluate organizations over time and compare them with their rivals. ...
... Technological adoption for organizational performance embracing technology tools such as project management software, communication platforms, and AI-driven analytics is imperative for enhancing operational dynamics, employee interactions, and overall organizational performance. Diverse facets of evaluation encompassing human resource outcomes, financial performance, and market-based indicators, as highlighted by Jahanshahi (2012) and Richard et al. (2009), provide insights into the multifaceted nature of assessing organizational success. ...
This study reviewed the related literature and ascertained a range of factors that shape and improve cultural awareness, with the critical findings poised to impact the overall organizational culture and performance associated with technology. The research question was simple. “What technology tools aid leaders in facilitating the removal of embedded ideologies that plague cultures?” The result of the literature review was a flow chart developed to explicate a framework for the synergistic use of technology tools to improve leadership. The study found that effective leadership fosters positive interactions, enhances performance, and establishes fair, non-stereotypical expectations. Six recommendations are given to foster synergistic technology delivery in facilitating the removal of embedded ideologies that plague corporate cultures.
... Part of the scientific research effort is devoted to the relationship between e-commerce and business performance ( Alderete, 2018 ;Azeem et al., 2015 ;Baršauskas et al., 2008 ;Igwe et al., 2014 ;Jahanshahi et al., 2012 ;Quirós Romero and Rodríguez, 2010 ;Saeed et al., 2005 ;Šaković Jovanović et al., 2020 ;Sedighi and Sirang, 2018 ). These studies have shown that e-commerce implementation positively influences business performance. ...
... The positive influence of net profit margin on financial performance varies according to the category of companies, being greater for larger companies (hypothesis H5) ( Jahanshahi et al., 2012 ) . ...
The study investigates the inverse relationship between financial performance and capital structure for the Romanian B2C e-commerce companies, based on a representative sample of 437 companies active in the period 2005-2020. Statistical analyzes show the evolution of financial performance and the impact of the COVID-19 pandemic on it, depending on the company category. All company categories had better financial performance in 2020 compared to 2019, based on sample results. The study reveals valid reference values for the financial ratios of Romanian electronic commerce, being a model to be applied in any industry. The analysis of the causality of the financial variables and their correlations, on the sub-periods 2005-2008 and 2009-2020, both at the company category level and at the sample level, are the basis of the GMM approach. The econometric models Difference GMM and System GMM explain the relationship between financial performance and capital structure leading to interesting conclusions. As e-commerce has a sustainable development, the findings and conclusions of the study provide guidance for economic policies at the sectoral level. Financial performance in relation to strategic debt management depends on the company category. Stimulating the development of those categories of companies that ensure the efficient performance framework can be the key to a sustainable development of the national economy. The study is useful for managers, investors, financial analysts, decision makers, in financial education as well as for the banking system.
... Previous studies have found that micro and small industries that apply ecommerce have the opportunity to improve their status and business performance even further. By implementing e-commerce, micro, and small businesses can experience an increase in sales, turnover, and business income (Hardilawati, et al., 2019, Jahanshahi, 2012, Almutairi & Altameem, 2016, Hendrawan, et al., 2018, Helmalia & Afrinawati, 2018. Despite the importance of e-commerce for micro and small businesses in Indonesia, there is still a lack of research on the specific impact of ecommerce on the performance and growth of micro and small businesses in Indonesia. ...
The micro and small industries play an important role in the growth of the national economy, as evidenced by the increasing number of micro and small business units every year and their contribution to the Gross Domestic Product (GDP). However, the COVID-19 pandemic has decreased revenue for micro and small industry players, forcing them to make efficiency measures in their business. To overcome this difficult situation, implementing e-commerce in micro and small industries is considered an important marketing strategy to maintain business continuity. In fact, only a few micro and small business actors apply e-commerce. This study aims to analyze the factors that influence the implementation of e-commerce in micro and small industries, as well as the impact of e-commerce implementation on the performance of micro and small businesses in Indonesia. The data used in this study were secondary data from the 2019 survey of micro and small industries conducted by the Central Statistics Agency (BPS), and the respondents were categorized into two groups: micro and small industries (SMI) that implement e-commerce and those that do not. The data was analyzed using propensity score matching. The study results showed that the implementation of e-commerce has a positive and significant impact on the performance of micro and small industries, namely an increase in employees, revenue, and business profit.
... The concept of company performance is based on the opinion that companies are productive associations, including achieving common goals (Jahanshahi et al., 2012). Improvement in company performance is an expectation that every company has. ...
... Company performance refers to how well the company can achieve market-orientated goals and financial goals. The company performance measures used in this study are financial performance measures, operational performance and market-based performance (Jahanshahi et al., 2012). Financial performance is often measured using accounting-based measures. ...
... Financial indicators are calculation techniques using the company's financial criteria, such as profit, return on investment, sales, and so on. Some experts often use return on sales, profitability, sales growth, labour productivity improvement, and production cost improvement to measure financial performance (Jahanshahi et al., 2012). ...
The presence of companies often triggers socio-economic that can disrupt the operations of oil companies. Previous research using stakeholder theory and the social license to operate theory contextualizes that operating companies need to focus on social and environmental responsibility to reduce socio-economic conflicts in local communities. A holistic CSR perspective becomes part of the company's strategic planning and core operations so that the company will be managed in the interests of its broad stakeholders to achieve maximum economic and social value in the long term. This research was conducted to analyse of the relationship between corporate social responsibility can provide social protection and it will generate profits for the company (business reasons). Researchers analyzed the relationship between corporate social responsibility and Firm Performance in The National Oil and Gas Companies of Indonesia, Pertamina in the period 2020 - 2022. The empirical analysis was conducted using Pertamina's sustainability performance highlights database with the measure of Economic, Environment, Social and Governance (ESDG aspect). This paper supports previous research which states that corporate social responsibility may not have a positive influence on Company Performance due to the complexity of the relationship. The results of this study indicate that the complexity of the relationship caused by the implementation of Pertamina Group's social and environmental responsibility activities is part of the implementation of the strategic role as a "locomotive of social development" as a state-owned enterprise (not always for business reasons), but it also aims to improve the company's reputation and credibility.
... In order to evaluate corporate success, it is crucial to standardize performance measures, standardization of measures is needed as a meter and evaluation material in preparing future plans. Several studies and experts such as according to [11] state that performance of financial, operational also market-based are the metrics of business performance that are most commonly employed in empirical research. ...
... This finding is in line with the report of Noviani Hanum and Sinarasri, (2018) and Alderete (2019) that the adoption of e-commerce affects SME's performance. The results of a former study (Jahanshahi et al., 2012) show that the adoption of e-commerce affects production/operational performance. Operational performance can be measured by sales, the introduction of new production, quality of products/services, marketing effectiveness, and customer satisfaction (Combs, Crook and Shook, 2004). ...
... The financial performance of a company can be seen from profitability, growth, cash flow, and efficiency. The findings reported by Jahanshahi et al. (2012) confirm that e-commerce adoption affects marketing performance. Marketing performance can be measured by stock returns, market value added, and capital turnover. ...
This study scrutinizes the motivational factors of e-commerce adoption using the Integrated Model of E-commerce Adoption in SMEs (IMAES) and analyzes its impact on business performance. This is quantitative research. Survey technique used to collect data. The Special Region of Yogyakarta, Indonesia, was chosen purposively as the center of traditional drinks, and 330 SMEs of traditional drinks in all districts/cities were proportionally taken as samples. Structural Equation Modeling was used as the data analysis method with PLS tools. This study shows that buyer, competitor behavior, relative advantage, organizational readiness, perceived ease, benefit observability, compatibility, ICT organizational, and innovativeness level significantly and positively influence e-commerce adoption. Risk perception and complexity have a significant and negative effect on e-commerce adoption. E-commerce adoption has a significant and positive impact on business performance, operational performance, financial performance, and marketing performance. Stakeholder collaboration is required to increase e-commerce adoption.
... The questionnaire used in this study is a modification of the expert questionnaire in which the ERP system (Kurniawan & Mudiantono, 2019;Pabedinskaitė, 2010), Practice SCM (Li et al., 2006), Competitive Advantage (Bharadwaj et al., 2015;Jie et al., 2007), dan Company Performance (Jahanshahi et al., 2012;Zainol & Ayadurai, 2011). ...
The rapid growth of retailers has resulted in increasingly fierce business competition in the market for the sale of goods and services offered to achieve excellence. One of the best service strategies for introducing various innovations in enterprise resource planning is to capture consumer interest in using these services. This study aims to examine and analyze the relationship between supply chain management practices based on enterprise resource planning (ERP) systems and business performance through competitive advantages of companies. Retail Bekasi area. This study was done. The questionnaire for each variable was distributed as a representative question of all dimensions with a sample of 200 respondents. For data analysis, we use SEM using AMOS software. In the end, the following search results were obtained: SCM practices have a positive and significant impact on competitive advantage, hypothesis 1 is accepted; (2) ERP system has a positive and significant impact on competitive advantage, hypothesis 2 is accepted; (3) SCM practices have a positive and significant impact on company performance, hypothesis 3 is accepted; (4) ERP system has a positive and significant impact on business performance, hypothesis 4 is accepted; (5) Competitive advantage has a positive and significant impact on business performance, hypothesis 5 is accepted. Pesatnya pertumbuhan bisnis ritel menyebabkan persaingan bisnis di pasar penjualan barang dan jasa semakin ketat untuk mencapai keunggulan. Salah satu strategi layanan terbaik untuk memperkenalkan berbagai inovasi perencanaan sumber daya perusahaan adalah dengan menarik konsumen untuk menggunakan layanan tersebut. Penelitian ini bertujuan untuk menguji dan menganalisis hubungan antara praktik manajemen rantai pasok berbasis sistem Enterprise Resource Planning (ERP) dengan kinerja bisnis melalui keunggulan kompetitif bisnis ritel di wilayah Bekasi. Penelitian ini dilakukan dengan menggunakan kuesioner untuk setiap variabel yang disebarkan sebagai pertanyaan yang mewakili dimensi dengan jumlah sampel sebanyak 200 responden. Untuk analisis data digunakan SEM dengan menggunakan software AMOS. Pada akhirnya diperoleh hasil pencarian sebagai berikut: (1) Praktik SCM berpengaruh positif dan signifikan terhadap keunggulan bersaing, hipotesis 1 diterima; (2) Sistem ERP berpengaruh positif dan signifikan terhadap keunggulan bersaing, hipotesis 2 diterima; (3) Praktik SCM berpengaruh positif dan signifikan terhadap kinerja perusahaan, hipotesis 3 diterima; (4) Sistem ERP berpengaruh positif dan signifikan terhadap kinerja bisnis, hipotesis 4 diterima; (5) Keunggulan kompetitif berpengaruh positif dan signifikan terhadap kinerja perusahaan, hipotesis 5 diterima.
