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Impact of e-commerce in lowering operational costs and raising customer satisfaction
Abstract
Purpose
Much research has been done on how e‐commerce has allowed companies to integrate business processes and reduce operational costs. The intent of this study, however, is to understand how e‐commerce has affected companies' abilities to serve the customers' needs and to raise their level of satisfaction.
Design/methodology/approach
Exploratory data analysis and logistics regression were used to analyze data collected from a multi‐industry company survey. The analysis showed that companies have been able to improve the level of service they can provide to their customers with e‐commerce.
Findings
The research showed that there is a direct correlation between the use of e‐commerce and improved customer service. In particular, e‐commerce has improved the availability of information, reduced processing errors, reduced response times, lowered costs of services, and has effectively raised customer satisfaction and the level of service that customers expect to receive.
Practical implications
The research revealed, that many businesses are making the transition to integrated e‐commerce business operations. This is being done with the expectations of lowering operational costs and also significantly improving the level of their service offerings.
Originality/value
The study is unique in terms of applying logistics regression approach to multi‐company data across various industries to analyze the impact of e‐commerce on the service aspect of business operations. It also addresses the research question – whether e‐commerce use in a business effectively raises the level of customer service and overall business operation to a more desirable quality.
... Online retailers must be creative to attract and retain consumers in competitive marketplace. As per impulse buying literature, there is enough evidence that 60% of transactions account for impulsive shopping (Verma & Singh, 2019;Kumar & Petersen, 2006;Lavuri, 2023). In addition, 90% of USA adults have bought an online impulsive, spending an estimated $17.78 trillion on an average of $82 per person (McDermott, 2017). ...
... However, there is a questionable problem due to more complexity in the analysis of consumer impulsive behaviour (Kaur et al., 2022;Mangiaracina et al., 2019) The predominance of online impulse sales can be attributed to multiple reasons, such as ease of access to goods, the consistency of the platform and virtual knowledge (Lavuri & Umair, 2023;Lavuri 3 & Park, 2023;Saini, 2005). Due to the benefits of e-commerce and rapid techno advancements, Internet, greater flexibility, wider product range, quicker transactions and personalisation encouraging sales (Verma & Singh, 2019;Lavuri et al., 2022;Kumar and Petersen, 2006). ...
... For online shopping, entertainment variables were used to attract the attention of the customer and to create a positive impression of the brand 5 / goods. Hedonic aspects such as entertainment and pleasure etc., improve online shopper's satisfaction with the virtual networks/websites, and so consumers spend much more time shopping for other products (Kumar & Petersen, 2006;Lavuri & Umair, 2023). Ensuring customer experience improves marketing efficiency and exposes customers to competitive incentives (Lavuri, 2023), and higher consumer hedonic value perceptions can lead to higher customer intentions for shopping (Lavuri et al., 2023a). ...
In an emerging market, understanding the behaviour of shoppers in the online market is essential to the development of online retail strategies. The aim of this research study is to examine the factors affects of seven factors namely, perceived utilitarian value, hedonic value, trust, materialism, fashion involvement, enjoyment, and attitude on online impulsive shopping in the Indian emerging market. Data is collected from 349 respondents, using purposive and snowball sampling. The data was analyzed using the IBM SPSS and AMOS package using Exploratory Factor Analysis (EFA), Confirmatory factor analysis (CFA) and Structural equation modeling (SEM). The results showed that seven of the research constructs had a positive impact on online impulsive shopping of shoppers; and it is clear that Perceived Utilitarian value, Perceived Trust and online shopping attitude had a major predictor factors. This research would help e-retailers develop new strategies and plans to increase sales volume and create strong relationships with online customers by providing trustworthiness and security in buying practices.
... Although the digitalization process is broader and deeper than the simple implementation of an electronic channel, there is no doubt that they have a direct relationship in the digital business transformation. E-commerce increases the efficiency of the value chain (costs) and, therefore, the efficiency of the supply chain (disappearance of intermediaries in traditional trade) [17,34,56,57]. E-commerce capabilities are a driver of efficiencies and performance [30] because they have a huge impact on business processes [56] that can effectively improve operational efficiency [58]. ...
... E-commerce increases the efficiency of the value chain (costs) and, therefore, the efficiency of the supply chain (disappearance of intermediaries in traditional trade) [17,34,56,57]. E-commerce capabilities are a driver of efficiencies and performance [30] because they have a huge impact on business processes [56] that can effectively improve operational efficiency [58]. Moreover, e-commerce intensifies competition among companies and competition improves their operational efficiencies [19]. ...
The main objective of this research is to carry out a comprehensive analysis of how e-commerce affects the performance of small and medium-sized enterprises (SMEs) in Mexico. This study will pay special attention to the role of business digitalization and the optimization of operational processes in this context. Our research involved creating a partial least squares structural equation model (PLS-SEM) to examine our hypotheses. According to our research, incorporating e-commerce, digitalizing business processes, and improving operational efficiency significantly contribute to corporate performance. Our results show direct effects that, together with indirect effects of business digitalization and operational efficiency, enhance the positive influence of online commerce. This research fills a gap in the literature by investigating the relationship between e-commerce, business digitalization, operational efficiency, and business performance. It provides essential insights into the direct impact of e-commerce on corporate performance and the indirect impact through the mediation of business digitalization and operational efficiency. The results show significant implications for business managers, as the findings can help them to invest in technologies that foster e-commerce, which, by improving business digitalization and operational efficiency, will result in better corporate performance and the ability to adapt to today's turbulent environment.
... For instance, Florido-Benítez [24] suggests universalizing firms' brand apps with the aim of increasing the number of users in direct contact with the firm, and promoting products and services internationally in a more immediate way. As stated by Kumar and Petersen [25], there is a direct correlation between the use of e-commerce and improved customer service. In particular, e-commerce companies have reduced response times and lower service costs, and have effectively raised customer satisfaction and the level of service that customers expect to receive. ...
... Based on the results of research, this study encourages the improvement of commercial alliances between online companies and air cargo carriers, with the aim of improving the quality of shipping and personalized services, distribution channels, efficiency of distribution, logistics distribution information optimization, and the development of futures alliances in the logistics industry. Kumar and Petersen [25] revealed that internet and e-commerce allowed the complete integration of all business elements including suppliers, customer service networks, and manufacturing units. Onstein et al. [139] indicated that the design of a spatial distribution structure was of strategic importance for companies, in order to meet required customer service levels and to keep logistics costs as low as possible. ...
Background: The purpose of this study is to analyse the role of the main 50 US cargo airports and 25 air cargo airlines in the logistics of e-commerce companies from 2000 to 2020, to highlight the importance of airports in the logistics and e-commerce industries. Methods: A review of the relevant literature on airports, air cargo carriers, logistics, and e-commerce sectors was undertaken to understand the link between them. The data were collected using four criteria: airport category, airport location, top 25 air cargo carriers, and other relevant data from the Federal Aviation Administration, International Air Transport Association, Organization for Economic Co-operation and Development, US Department of Transportation, amongst many others. Results: The findings reveal that there is a consolidated relationship between airports, air cargo airlines, and e-commerce, which has been especially evident during the COVID-19 pandemic. Airports and air cargo carriers are identified as the most relevant partners in the e-commerce industry. This is because of the e-commerce sector and its users’ demand for speed and reliability in the interaction between the demand for and supply of products and services. Conclusions: The pandemic has changed the way in which organizations operate and is likely to create new demand from companies and users in the aviation and e-commerce industries. E-commerce companies are highly dependent on the quality and efficiency of air cargo airlines and airports because they need to provide a good shipping service for their products to customers.
... Reduction in the spending of online shopping because of vulnerability and fear spread all over the world by the covid. This reduction is higher in the younger generation as compared to traditional people because younger generations are more actively involved in social media and e-commerce services [3]. Another survey revealed that women were more likely to be concerned and affected by the covid-19 than the man as the data show that about one-third of the male compare through 25% of the female adverse effect on the buying behaviour and spend money on products [4]. ...
... The paper also suggests measures that demonstrate the sustainable consumption relationship in the discussion. [3]. Because of the spreading covid-19 pandemic crisis, several kinds of research were conducted in the field, demonstrating the impact of covid-19 in the economy of the world and the relationship between e-commerce platforms. ...
India is one of the developing countries having a giant population with restricted resources. Indian perception is usually being traditional approach toward a buying behaviour which is the retail business for shopping as they were familiar with physical shopping patterns. However, due to advanced technology, people were attracted to the virtual world. This also demonstrated the e-commerce business, which steadily enhanced the ecommerce market in India. Additionally, the pandemic crisis, which is widely spread in India and the world, also paves the way for India’s e-commerce business growth and opportunities rather than the retail business. Covid-19 has its worst effect on business worldwide as it changes or influences the nature of the business. The main objective of the study is to comprehensively analyse the impact of covid on the economy with the remarkable concentration of the e-commerce and retailer sector of the business. The paper tries to understand and explore the impact of enhancing e-commerce platforms, steadily capturing the retailer’s business, and reducing the sales bar graph, ignited by the coronavirus pandemic condition were lockdown, social distancing pave the new opportunities for the e-commerce platform. However, bring challenges too to survive in the crisis. The consumer avoids going for physical shopping in the crowded area because of the pandemic outburst and its aftereffects. This is also illustrated from the survey conducted to accomplish the motive of the paper through a sample of 143 responders. The outcome reveals the ecommerce objective, which strives for a better opportunity to pave the Indian economic growth.
... this can be seen during the economic crisis of 1998, MSMEs can become a pillar of the Indonesian economy and can survive in world economic uncertainty [22], [23], [24]. MSMEs and small industries can survive in the midst of the economic crisis because they have the advantage of the quality they produce [25]. This is supported by the opinion expressed by Kim & Peterson [26] that the superiority of a product can be a competitive competitiveness in the eyes of consumers and it is possible that business activities can survive better in times of crisis. ...
... This is in accordance with the vision of ASP production, namely "To be the best and highest quality Jacket Company and always meet consumer expectations". This is certainly in line with the opinion expressed by Kumar & Petersen [25] and Kim & Peterson [26] that production products that have the best quality and have competitive advantages and are supported by proper business planning will be the main attraction for consumers. Thus the results of the research conducted by Bracker et al. [19], Lyles et al. [20], and Gibson & Cassar [21] that good business planning has a positive impact on the development of business organizations in the future in accordance with ASP Production, especially the carefulness in seeing the market potential of community jackets that are increasingly promising. ...
This study aims to determine the impact of business planning for the development of MSMEs. The research method uses is a qualitative method with a descriptive and explorative descriptive approach. From the results of the research conducted, the results show that proper business planning and the application of a good marketing strategy have a positive impact on the sustainability of MSME activities. In addition, the quality of production that has a competitive advantage is also one of the driving factors. For the development of MSMEs, there are several obstacles faced, especially related to capital and guidance from the local government. With the development of MSMEs, it is expected to improve people's welfare, including helping the government in reducing unemployment.
... Non-adopters are slow in detecting changes in technologies and have negative mindsets regarding e-commerce, such as distrusting the technology, unwilling to change, and unaware of benefits (McCole, 2005). Kumar and Petersen (2006) reported that e-commerce adoption results in the availability of information, reduced response times, lowered costs of services, and improved customer satisfaction. Another study found that SMEs that adopted e-commerce in the US, European Union, and Canada obtained such benefits as improvement of revenue and cost minimization (Johnston et al., 2007). ...
... Thus, the 13 items are considered reliable and can be used as a component for developing the maturity model of e-commerce adoption. This result is consistent with the previous researches (Johnston et al., 2007;Kumar & Petersen, 2006;Santarelli & D'Altri, 2003;Ying & Fengli, 2012). With regard to the second research question, the following benefits can be acquired by SMEs: marketing cost for exhibition, 24 ...
E-commerce provides several advantages for Small and Medium Enterprises (SMEs). E-commerce adoption by Indonesian SMEs is still very low. This study conducts a research to establish a maturity model of e-commerce adoption by Indonesia SMEs. It was carried out in two phases from 2014 until 2015. The result of the first phase recommends four levels of maturity model and 13 e-commerce benefits, 51 functionalities, and 9 non-functionalities that an e-commerce solution must have. The result of the second phase presents a maturity model of e-commerce adoption for SMEs in Indonesia.
... Lin (2003) argues that e-Customer satisfaction is of a critical importance when measuring perceived customer-delivered value that is offered by e-Commerce [6]. Kumar & Petersen (2006) have studied how e-Commerce has affected online companies' abilities to serve the e-Customers' needs and to raise their level of satisfaction [7]. Liu et al. (2008) identify factors that may influence Chinese customers' online shopping satisfaction from the perspective of total online shopping experience. ...
... Lin (2003) argues that e-Customer satisfaction is of a critical importance when measuring perceived customer-delivered value that is offered by e-Commerce [6]. Kumar & Petersen (2006) have studied how e-Commerce has affected online companies' abilities to serve the e-Customers' needs and to raise their level of satisfaction [7]. Liu et al. (2008) identify factors that may influence Chinese customers' online shopping satisfaction from the perspective of total online shopping experience. ...
The rapid development and adoption of information and communication technologies (ICTs), especially the vast proliferation of Internet and Web 2.0 paradigm in the recent years, have profoundly transformed the traditional ways of doing businesses worldwide. Going virtual has offered the companies many new possibilities, but it has also revealed many potential obstacles that have imposed new business strategies. Beyond any doubt, creating satisfied e-Customers, who will generate more e-Customers, is the best business strategy of all for online companies. Satisfied e-Customers are the key premise to attracting new e-Customers and then retaining them on a long term, the two most important aspects of doing business online. In that context, the paper highlights some results of an online survey, conducted among college students in the Republic of Macedonia, regarding their perceived levels of satisfaction vis-à-vis their B2C e-Commerce purchasing experiences. The statistical analysis of the survey results is based on the appliance of elements of descriptive and inferential statistics, as well as linear correlation and factor analysis. As such, the aim of the paper is to provide a profound knowledge and understanding of how Macedonian college students evaluate their online shopping experiences.
... is defined as the extent to which the firm's customers are satisfied with the quality, functionality and variety of its products. This construct was measured via the following items adapted from several sources (Devaraj et al., 2002; Keeney, 1999; Kumar and Petersen, 2006; Szymanski and Hise, 2000): i) Our customers are satisfied about our ability to customize products / services; ii) Our customers are satisfied about the variety of our products / services; iii) Our customers are satisfied about the quality of our products / services. ...
... Customer Value: The extent to which the firm's customers are satisfied with the quality, functionality and variety of its products. (Source: Keeney 1999, Kumar and Petersen 2006, Szymanski and Hise, 2000, Devraj et al 2002) CustValue1: Our customers are satisfied about our ability to customize products/services; CustValue2: Our customers are satisfied about the variety of our products/services; CustValue3: Our customers are satisfied about the quality of our products/services. CIO Leadership Role: The different broad-level activities undertaken by the CIO vis-a-vis generating ideas, developing action plans, coordinating among departments , and engaging in proactive decision making. ...
While information systems (IS) have traditionally been used primarily for firm-wide operational efficiency, emerging theoretical perspectives have shifted scholarly focus to IS as a force that can drive value through business innovation. This study examines how IS strategy creates customer value through an innovative business orientation and how IS leadership and the organizational context can influence the relationship between innovative IS and business strategies. Integrating several research streams under the umbrella of the IS strategic management literature, we develop and empirically validate a research model based on confirmatory analysis and structural equation modeling applied to survey data collected from senior IS executives in 165 organizations based in the United States and India. Our results suggest that organizations that have an innovative IS strategy are well positioned to engage in business innovation, which in turn yields greater customer value. Furthermore, we find that strong IS leadership and a creative organizational climate enhance the relationship between an innovative IS strategy and innovative business orientation.
... Also, it is easier for the public administration to more accurately respond to each individual citizen, since egovernment offers more efficient access of relevant data regarding the citizen of interest. (Kumar andPetersen, 2006, UN, 2008) Improved information quality. ...
... At the same time, public administrations benefit, since digital forms and such will assure the information submitted will be correct and complete. (Kumar and Petersen, 2006, Hunter et al., 2004, Charalabidis et al., 2006, Teicher et al., 2002 Increased availability and accessibility. ...
Public e-services are increasingly being used by public administrations as a way of interacting and communicating with citizens and business organisations. However, public administrations tend to view public e-service development from an inside-out perspective, meaning that motives and needs of the future users, i.e., citizens and business organisations, are, in most cases, not taken into account. This in turn has led to a situation where public e-services, designed without a clear view of the prospective users’ needs, are likely to be rejected, since they are not regarded as better alternatives than existing ways of interacting with public administrations. For a long time, user participation has brought value to systems development projects and today’s expectations are that the same benefits will apply to public e-service development. However, existing research shows that introducing user participation in public e-service development can be challenging. User participation can also mean many things and be of various degrees, as well as include a multitude of methods and techniques. Existing research on user participation in public e-service development provides scant guidance on how different forms of user participation fit into a public e-service development context as well as how user participation can be used, in terms of what form of user participation is the most appropriate one to use in a specific development project setting.
Based on a qualitative and interpretive research approach, this thesis is focused on how user participation can contribute to public e-service development, as a means of enhancing the possibility to develop public e-services that are employed by its external users once implemented. By combining existing research theory on user participation with empirical data collected from external public e-service users, in terms of citizens and business employees as well as public administrations, a set of guidelines that show how user participation should be implemented in public e-service development has been synthesised. These guidelines provide public administrations with recommendations, when selecting the most appropriate form of user participation to apply as well as the kinds of characteristics that user participants need to fulfil, in order to be the most suitable candidates for such a specific form of user participation.
... One of the purposes of the present course in global supply is to identify how significant the lack of common definition for SCM are and to examine the potential consequences or implications that misunderstandings of terminology could have on the academic and research-oriented world as well as the entire SCM field in practice. Barra et al. (2010), Daim et al. (2010), and Kumar and Petersen (2006) empirically explored the effects of e-commerce that help companies improve their operations for better customer service. Previous studies revealed that information technology allowed businesses to reduce errors, streamline processes and establish informative corporate websites, which result in reducing overall costs and add service value to customers (Barra et al., 2010;Daim et al., 2010;Daramola et al., 2010;Dominic et al., 2010). ...
... Hence, it challenges companies to upend cost-effective business decision to adopt B2B e-commerce model within their manufacturing operations. Kumar and Petersen (2006), for example, utilised a five-part survey to obtain business profile, help participants understand the definition of e-commerce and service during business operations. The authors assessed the use and benefit of e-commerce as it influences personal life decisions and comments on e-commerce users' experience as well. ...
The present study is a case study of lean and SCM practices of two major Ohio-based manufacturing companies with a significant global presence. The management of both firms tries to strategically leverage its product line to integrate HRM and visual information technologies, coupled with the power of the internet, to significantly impact and improve its lean operations. This enhanced focus on human capital is designed to simultaneously enhance the companies' ability to meet its customers' needs and raise customer satisfactions. It was found that whatever the operational case was cited in the present study, management was successful in its attempts integrate technology into its process to reduce cost and improve customer service as the companies continue to engage in lean manufacturing processes. Management at both companies has found that as time and competitive advantages change, technological advances change drastically as well. They have found that they can develop a strong competitive advantage by incorporating technology into their supply chain.
... Hal tersebut diakibatkan oleh peningkatan operasional usaha meliputi proses pemesanan, pengiriman produk serta promosi yang dilakukan melalui penggunaan e-commerce (Ramanathan, et al., 2012). Pemanfatan e-commerce mampu meningkatkan kepuasan konsumen melalui ketersediaan informasi mengenai konsumen tersebut (Kumar & Petersen, 2006). ...
... As technology becomes increasingly sophisticated, organizations are constantly adopting new technologies to meet customer demand for goods and services more efficiently. Technological innovations have enabled organizations to transition from the traditional way of doing business while improving their competitive advantage by minimizing operational costs [1]. Financial institutions remain the largest sector to adopt technological advancements. ...
This analysis aims to empirically investigate the impact of different forms of Fintech on the financial performance of banks in Kosovo from 2010 to 2021. The research is based on secondary data, accounting for 48 observations at quarterly frequencies. The model treats bank performance (i.e., net profits of the bank sector) as an endogenous variable of ATMs, POS, and e-payments. The methodology applied in the research is based on the OLS technique and diagnostic tests for evaluating the normality of distribution, multicollinearity, autocorrelation, specification error, and heteroscedasticity. Results show that the variability of ATMs and e-payments determines bank performance variability. In particular, e-payments show a significant positive impact on bank profitability, whereas ATM payments display a negative impact on bank profitability. In addition, an increase in ATM payments by 1% decreases bank profitability by 0.367%. While an increase in e-payments by 1% increases bank profitability by 0.11%. The POS payments were found to have no significant relationship with bank profitability.
Doi: 10.28991/ESJ-2023-07-03-016
Full Text: PDF
... Tinggi rendahnya biaya operasional yang keluarkan berhubungan sebuah produk yang didistribusikan ke pasar akan mempengaruhi tingkat penjualan selama periode tertentu, juga mempengaruhi keuntungan yang diharapkan (Dey et al., 2019). Sementara Kumar & Petersen (2006), menyebutkan bahwa ada hubungan antara biaya operasional dan aktivitas komersial dalam upaya meningkatkan volume penjualan dan kepuasan pelanggan. ...
Penelitian ini menganalisis biaya operasional dan biaya promosi, hubungannya untuk memprediksikan volume penjualan. Model regresi menggunakan data panel dengan program EViews v10. Analisis regresi dengan pendekatan REM sebagai model terpilih, diperoleh melalui serangkaian pengujian yaitu Chow test, uji Hausman test, dan LM test. Temuan menunjukkan biaya operasional memiliki korelasi dengan biaya promosi dalam memperkirakan volume penjualan. Variasi hubungan biaya operasional dan biaya promosi memiliki kontribusi pengaruh bersama terhadap volume penjualan. Secara individual menunjukkan bahwa biaya operasional terbukti berpengaruh positif signifikan terhadap volume penjualan, demikian juga biaya promosi. Biaya operasional dan biaya promosi secara serempak berpengaruh positif signifikan terhadap volume penjualan. Di era ekonomi digital dalam konteks serupa selain biaya operasional, adanya pendalaman dimensi biaya promosi yang menjadi biaya promosi offline dan online dapat ditambahkan untuk menganalisis tingkat efektifitas keduanya dalam memprediksikan volume penjualan sebagai modifikasi, memungkinkan sebagai peramalan dan masukan yang lebih baik untuk pertumbuhan penjualan, dapat menjadi pertimbangan penelitian selanjutnya.
... Higher ROI on Marketing Cost [49] eCommerce is significantly effective on SME performance, financial performance, internal process, customers, growth and learning [50] Lower transaction costs [51] Improved Working Capital Disintermediation reduces transaction costs and value leakage in the value chain [2] Reduced Operating Costs [52] Financial Management and Asset Monitoring eCommerce reduces the cost of monitoring business and financial operations [20] Among the tangible benefits is the reduced production cost [19] eCommerce reduces transaction and coordination costs through interconnective networks and online databases globally [51] Were there changes during the pandemic? Are you planning to add more tools after the pandemic is over? ...
Inspired by the ongoing disruption to businesses across the world, this research focuses on how the COVID-19 pandemic has affected the contribution of eCommerce to small and medium-sized enterprises (SMEs). Our study seeks to establish an eCommerce-driven response to this natural disruption, by asking the questions; How do eCommerce platforms impact SMEs? How does eCommerce affect an SME’s three major business functions during a global disruption? We employ a qualitative case study method, using interviews as our primary data source, along with secondary data from industry and company records. We discuss these case studies through the framework of the actor network theory (ANT), identifying eCommerce and other platforms that SMEs use as actors in their network. We interviewed eight SMEs involved in the physical sale and distribution of consumer goods, each of which had been operating for at least two years and had a maximum of 70 employees. On average, we found that 44% of the SMEs in this study benefitted from using eCommerce in key business areas, with 46% improving their operations, 47% improving sales and marketing, and 39% improving finance. We also found that SME adoption of eCommerce during the pandemic grew in response to these benefits. Of the eight companies we studied, four had begun developing full eCommerce operations and three more planned to develop them as the global situation further normalizes.
... In line with the findings, other studies by Clayton and Waldron [22], Silviano and Juan [88], and Kumar and Petersen [48] concluded that using online advertising on e-commerce will increase the competitiveness level of an enterprise and lead to better performance. Furthermore, Balasubramanian [9], Clayton and Waldron [22], Hoffman [42], and Kumar and Petersen [49] also state that e-commerce has capabilities to provide a direct channel and accessible information flow to consumers, which eventually will lead to increases in awareness, brand recognition, and customers' exposure to products [92]. ...
We study the adoption of technology by micro, small, and medium enterprises (MSMEs) in Indonesia to enhance their businesses and inclusivity in financial products and services. Using a survey of 338 MSMEs that adopt e-commerce across ten provinces in the country, we use two-stage least squares regression to empirically analyze the impact of e-commerce adoption on business performance and its effect on financial inclusion. We further investigate the effects of e-commerce on marketing by performing ordered logistic regression using indicators in ordinal scale. The results show that brand recognition and customer awareness improve performance significantly. Our findings also reveal that the performance improvements caused by e-commerce adoption will encourage better inclusion of MSMEs in the financial system through access and use of more diverse financial products and services. Furthermore, collaborations between financial institutions and e-commerce platforms will accelerate MSMEs’ financial inclusion in Indonesia.
... The development of e-commerce businesses in the industries of banking was shortly elephantiasis in order to follow the trend of digital transactions, including in the case of cashless payment, branchless banking, as well as the services of financial and banking are internet based (Chu et al., 2007;Kamaruzaman and Hanrich, 2010;Kumar and Petersen, 2006;Lambertini and Shy, 2002). Bank Indonesia data (2016) recorded, total e-money transactions in 2015 jumped sharply to Rp 5.2 trillion from% p 4.3 trillion in 2014. ...
... Kotler (1994) understands satisfaction as the degree to which the perceived product features meet customer expectations. Satisfaction is therefore a graded feeling (Kumar and Petersen, 2006) and is measured (Gajewska et al., 2019). The customer may be partially satisfied, for example, with some features of the product or service, whereas at the same time other features may not suit him/her at all. ...
Purpose
The purpose of this paper is to identify the components of logistics value and examine their influence on customer satisfaction in e-commerce. This study investigates the moderation effect between those two variables using the overall service level in the different industries of e-commerce.
Design/methodology/approach
A total of 592 correctly filled questionnaires from telephone and web interviews (computer-assisted telephone interviews and computer-assisted web interviews) were scrutinized. Hierarchical linear modeling (as a part of a wider group of multilevel modeling studies) was used to verify the dependencies between variables from an organization and industry levels.
Findings
The logistics factors indicated and described in the paper differently affect the value for the customer. This value is subjective and dynamic. For this reason, the online seller should develop a system to create a sustainable value proposition. It is plausible due to the possibility of choosing the type of delivery, date of collection and change thereof, as well as that of returning the product. Because of all this, the customer decides on the way of the order execution and creates the value chain.
Research limitations/implications
The developed model is aimed at identifying universal relationships that create the customer satisfaction mechanism for the logistics value. However, this may result in other aspects of customer satisfaction being neglected. The authors are aware that the creation of value by a company in e-commerce must be approached in a systematic manner.
Practical implications
The results obtained and the representativeness of the surveyed sample of companies lead to the formulation of implications for business practice. The conclusions of the research definitely indicate a need to build awareness of logistics value and its influence on customer satisfaction through the service level in the industry. Because of the identified components of the logistics value and industry characteristics, managers of online retailers can better run their businesses, increase customer satisfaction, and thus improve their performance.
Originality/value
It is the first study that concerns e-commerce in individual industries, with particular emphasis on logistics and its impact on customer satisfaction.
... [6, p. 33] From the above understanding, the dimensions of E-commerce are transactions, marketing of goods, and electronic systems. A description of the previous E-commerce in line with [7] argues that Ecommerce is an easy tool in getting goods and services via the internet. This allows it to be done in real-time, ordering goods/services online, transactions between businesses, etc. ...
This research was conducted on XYZ Souvenir consumers. The purpose of this research is to determine how much the contribution of the use of E-commerce and Service Quality affects customer satisfaction both partially and simultaneously on XYZ Souvenir. The research method that will be used in this research is the verification method. In this research, the unit of analysis is individuals, namely XYZ Souvenir consumers. The sample in this study was 134 respondents. Systematic random sampling is a sampling withdrawal technique used in this study. The analysis method uses path analysis, while also testing the validity and reliability of the research instrument. Based on the results of the study indicate that there is an effect both partially and simultaneously on exogenous variables (E-commerce and Service Quality) on endogenous variables (customer satisfaction). The implication of this research that XYZ Souvenir can make various improvements a good site design (such as information on goods/services that are complete and clear, there are promotions such as giving discounts, and special offers, accepting proposals from consumers payment features used, making online promotions) and adding product variations.
... B2C e-commerce creates opportunity for businesses and consumers to minimize procurement and transportation cost, enhance communication, make sales easier and increase revenue (Khan, 2016;Kumar & Petersen, 2006). E-commerce uses appropriate information practices to increase customer base, preference, loyalty and satisfaction, and to save network optimization cost (Zhou & Wang, 2014). ...
Globalization and its attendant expansion of businesses continue to create opportunities for the use of e‐commerce. E‐commerce is noted for contributing to cost reduction, capital expansion, efficiency and high client satisfaction in businesses. Unfortunately, there is dissatisfaction among investors in student housing with the application of e‐commerce in Ghana. This study examined the key factors influencing satisfaction among investors in student housing with e‐commerce platforms and traded products in Ghana. A concurrent mixed design based on survey and interviews, as well as an Exploratory Factor and thematic analyses of data were used. Whereas security and interface features were key factors influencing investors' satisfaction with e‐commerce platforms, product availability and quality of packaging were key factors influencing investors' satisfaction with traded products. It would be worthwhile for website designers to consider these factors in designing websites. Also, by considering these factors, suppliers can increase their revenues. Furthermore, the results of this exploratory factor analysis means that further confirmatory studies may be conducted to validate the findings.
... The fewer the errors that occur, the less waste there is. M-Commerce can also help to reduce operational costs [6]. With the assistance of mobile commerce, more channels of communication can be supplied from business to business. ...
This research focuses on user's perceptions of M-commerce. It investigates issues that are related to M-commerce successful implementation, such as integrating the function of business intelligence and information system management to M-commerce, applying businesses process management to M-commerce, and solving the security and privacy issues in which could impede M-commerce. This paper develops a research framework and hypotheses to investigate users' perceptions of those M-commerce implementation issues. The research results show that there are big gaps between users' perceptions of the actually situations and their expectations of those issues.
... Such instances show that when VSN diffusion is high, there will be greater pressure on businesses to meet customers' demands. As B2C e-business is known to increase convenience, customer experiences, and service quality (Berry et al., 2002;Kumar & Petersen, 2006), there will be an increased collective demand from citizens for its use by businesses. This increased pressure arising from higher customer demand will give the businesses an additional reason to mimic the government in using B2C e-business when VSN diffusion is high, making the relationship between e-government maturity and B2C e-business use stronger. ...
Research exploring the link between e-government and e-business is still at a nascent stage. Motivated to advance this research area, using a quantitative study by employing publicly available data, we explore the relationships between e-government maturity, corruption, VSN diffusion, and B2C e-business use. We draw on the value framework for assessing egovernment impact, and ground our arguments on four theoretical perspectives, namely, (1) principal-client-agent theory, (2) institutional theory, (3) the strategic gap concept, and (4) Habermas' public sphere concept. Our results confirm (1) the indirect association between e-government maturity and B2C e-business use through corruption, and (2) the moderation effect of VSN diffusion on these relationships. The key contributions of this study include extending (1) the understanding of ‘e-government–e-business’ relationship by empirically establishing the role of corruption as an intervening factor; and (2) the notion of VSN as a public sphere to the business context.
... Technological externalities are defined as those consequences of activity which directly influence the production function in ways other than through the market (Martin and Sunley 1996). In addition, enhanced usage of information technologies enables industry to reduce cost and improve the level of service to the customers (Kumar and Petersen 2006). Geographical proximity decreases the transaction costs (for example, the costs of delivery) as all stakeholders in a value chain and other related institutions are close to each other. ...
Sustainability has become a critical issue for both society and businesses globally. With the increase of natural disasters and global issues such as water shortages, acid rain and climate change companies have started focusing on reducing their carbon footprint to ensure that the world’s natural resources are sustained for the foreseeable future. Many international and local companies are now looking to incorporate green initiatives into their supply chain management. This has given rise to green supply chain management which is the incorporation of sustainable initiatives into the supply chain of a company. Designing green supply chains (GSCs) requires complex decision support models that can deal with multiple dimensions of sustainability and specific characteristics of products and supply chain. Multi-criteria decision making (MCDM) approaches can be used to quantify trade-offs between economic, social, and environmental criteria i.e. to identify green production options. This study presents a hybrid decision-making approach for group multi-criteria evaluation for green supply chain management (GSCM) implementation criteria, which clubs many green processes with order allocation for dynamic supply chains to cope market variations. More specifically, the developed approach imitates the knowledge acquisition and manipulation in a manner like the decision makers who have gathered considerable knowledge and expertise in this domain. Fuzzy DEMATEL is first applied to find the causal relationship between the criteria and to rank them. Fuzzy SWARA method is used for evaluation of GSCM implementation criteria weights, which are qualitatively meaningful. Thereafter, using fuzzy TOPSIS method, the criteria application is quantitatively evaluated again for order allocation of criteria. To illustrate the applicability of the proposed hybrid framework, a real-life case study is presented in the chapter, and the results are analysed accordingly.
... E-commerce has positive effects on customer-based development (Karagozoglu & Lindell, 2004). The use of E-commerce is capable of improving customer's satisfaction and the availability of resources, as well as reducing errors (Kumar & Petersen, 2006). In addition, Ecommerce helps MSME identify the benefits of operating system, helping improve overall working performance (Love & Irani, 2004). ...
p>This study aims to examine factors contributing to societies’ tendencies to choose online shopping, the characteristics of e-commerce needed by societies and obstacles faced by MSME in handling business competition. E-commerce is a set of dynamic technology, application and business process which connects certain companies, consumers and communities through electronic transaction. Trade of goods, services and information is performed electronically. The development of E-commerce system for MSME aims to change its culture which still relies on conventional purchasing into online shopping, improve MSME’s sales in order to promote, market and sell products to internet users through website without any space and time limits. The research subjects are people involving in MSME and communities of Jebres village, Surakarta. This study applies qualitative paradigm. The research subjects were taken using purposive sampling techniques. Data were collected using various techniques: structured interview, questionnaire, observation and content analysis or archive analysis. Data were later analyzed using four stages, namely data reduction, classification, data presentation and verification.</p
... Lindh (2005) argues that, to interrelate in order to swap information is an imperative aspect of business associations, since information is required in order to process ordering, talk on specific requirements of the products, as well as to agree on payment and deliver the goods. Based on previous research by Kumar and Petersen (2009) it was found that the use of IT has significant impact on customer satisfaction because customers' relationships are improved with the use of social media resulting in enhanced communications with customers, and improved response times. OECD (2013) found that IT offers relatively inexpensive solutions for making information available to a large number of customers via the web, including social networking platforms, that today complement (or sometimes even substitute for) traditional communication channels, such as newspapers, radio or television advertising campaigns. ...
Abstract
The main purpose of this study is to explore the effects of information technology on business, focusing on how information technology had enabled TESCO Malaysia to improve customers’ satisfaction and customers’ retention. The conceptual framework for this research was deduced from past researches (Lindh, 2005; Daneshvar and Ramesh 2010), it comprises of five independent variables which are, cost reduction, speedy process, communication and relationship, accessibility and convenience and two dependent variables which include, customers satisfaction and retention. The study adopted descriptive and explanatory research designs. Also this study used a case-study survey methods using a survey questionnaires containing 35 items with Likert Scale (Disagree -1 and 5 for Agree). The sample of 253 respondents (customers) from various TESCO retail outlets were recruited using self-selection sampling. The collected data was analysed using descriptive means and regression via SPSS.20. To ensure reliability and validity of the data set, the sample size only includes TESCO Malaysia’s Customers’ who had made use of TESCO Grocery Home Shopping Service. The Bivariate multiple regression result shows that all the IT enabled elements has a significant and positive impact on customers’ satisfaction except accessibility, which we found no significant influence on customer satisfaction. Also this research found a positive and significant influence of IT enabled elements on customer retention except cost and accessibility. Also this research shows that improved customer satisfaction has a significant and positive impact on customer retention. This study concluded that adoption of advanced information technology will maintain TESCO Malaysia’s competitive edge through customer satisfaction and retention. Therefore managers working in retail sector should take initiatives to promote the use of IT in order to enhance customers’ satisfaction and retention. Future research should involve several organizations from different sectors and make use of a larger sample that will improve the generalization of the effects of information technology on business.
... Além disso, diversas pesquisas na área apontam que a concentração geográfica pode contribuir para: a) desenvolver benefícios financeiros e externalidades tecnológicas (Belleflamme, Picard, & Thisse, 2000); b) a comunicação entre os membros do cluster, pois esta é reforçada e a troca de conhecimentos é intensificada (Bergman & Feser, 1999); c) reduzir custos e melhorar o nível de serviço aos seus clientes por meio do uso aprimorado de tecnologias de informação (Kumar & Petersen, 2006); d) diminuir os custos de transação, reduzindo os riscos (Preissl & Solimene, 2003); e) estabelecer vínculos de cooperação entre empresas por meio de aprendizagem mútua e aumentar a criação de conhecimento. Tal conhecimento pode gerar spill over, isto é, transbordar para as empresas locais, devido ao contato mais fácil (informal) entre elas (Bagella, Becchetti & Sacchi, 1998). ...
RESUMO A presente pesquisa tem por objetivo analisar como o processo de clusterização pôde influenciar o crescimento de pequenas empresas da indústria da cachaça do estado de Santa Catarina. Para tanto, realizou-se um estudo de caso coletivo com sete micro e pequenas produtoras de cachaça da região de Luiz Alves e uma empresa de outra região. Além disso, utilizou-se a pesquisa bibliográfica como forma de comparação dos resultados com outras localidades. A coleta de dados deu-se por meio de entrevistas e a análise por meio da técnica de análise de conteúdo. Observou-se que a atuação por meio dos recursos de cluster pode ampliar o crescimento das empresas em questão, principalmente pela percepção de qualidade a respeito dos produtos. Para ampliação das vantagens, ressalta-se a possibilidade de atuação de forma associada. Como contribuição teórica, nota-se que a abordagem da teoria de clusters pode ser aliada à teoria de crescimento da firma. Palavras-chave: Recursos de cluster; Crescimento de empresas; Cachaça; Concentração geográfica. 1 Doutorando em Administração pela Universidade Federal do Paraná – UFPR, Curitiba, (Brasil).
... The rapid advances in information and communication technologies tend to develop virtual links between SMEs, contributing towards realizing collaborative relationships with trading partners and easing the virtual manufacturing processes (Chiu et al., 2006) thereby inferring that clusters do not necessarily have to be locally defined entities (Preissl and Solimene, 2003). In addition, they have been able to reduce costs and to improve the level of service to their customers through enhanced usage of information technologies (Kumar and Petersen, 2006). In contrast, however, the introduction of a business-to-business (B2B) trading networks increases the global market participation of firms from peripheral countries, but does not appear to reduce the importance of geographical concentrations (Zaheer and Manrakhan, 2001). ...
Competitiveness has been a topic of research in the manufacturing and related
sectors since the early 1990s. While there is much agreement on the economic and
social importance of competitiveness, it is less clear what exactly competitiveness
is and what its most important determinants are. The focus of this paper is to
review the literature at the firm level and evaluate and compare all the available
competitiveness-related frameworks and models, to present the empirical evidence
and to investigate the relevant competitiveness indices.
... E-commerce is the most important field in information revolution with the widest influence to the whole society, and it has great impact on operation mode of social economic activities, efficiency of economic activities and changes of social economic environment [1][2][3]. Given opportunities and challenges brought by economic globalization, how to enhance international competitiveness and achi eve sound and rapid development by taking advantage of e-commerce has drawn wide attention of national governments, enterprises and academic circle. ...
... Customer Value: The extent to which the firm's customers are satisfied with the quality, functionality and variety of its products. (Source: Keeney 1999, Kumar and Petersen 2006, Szymanski and Hise, 2000, Devraj et al 2002) CustValue1:Ourcustomersaresatisfiedaboutourabilitytocustomizeproducts/services; CustValue2:Ourcustomersaresatisfiedaboutthevarietyofourproducts/services; CustValue3:Ourcustomersaresatisfiedaboutthequalityofourproducts/services. CIOLeadershipRole:Thedifferentbroad-levelactivitiesundertakenbytheCIOvis-a-visgeneratingideas, developingactionplans,coordinatingamongdepartments,andengaginginproactivedecisionmaking. ...
Acknowledgment All three authors contributed equally to the paper. The authorship is listed in alphabetical order of last name. Abstract While information systems (IS) have traditionally been used primarily for firm-wide operational efficiency, emerging theoretical perspectives have shifted scholarly focus to IS as a force that can drive value through business innovation. This study examines how IS strategy creates customer value through an innovative business orientation and how IS leadership and the organizational context can influence the relationship between innovative IS and business strategies. Integrating several research streams under the umbrella of the IS strategic management literature, we develop and empirically validate a research model based on confirmatory analysis and structural equation modeling applied to survey data collected from senior IS executives in 165 organizations based in the United States and India. Our results suggest that organizations that have an innovative IS strategy are well positioned to engage in business innovation, which in turn yields greater customer value. Furthermore, we find that strong IS leadership and a creative organizational climate enhance the relationship between an innovative IS strategy and innovative business orientation.
... With the introduction of multichannel retailing, e-retailer is formed as there is a huge opportunity for them to expand the business faster and reach out more audience geographically. Businesses are using the internet to enhance customer services and product information to boost profits through decreasing errors, orders process efficiency and spread out the opportunities of the online market (Kumar & Petersen, 2006). There is a possibility that online shopper might do shopping online due to its hectic lifestyle that they do not have enough time to go out just for shopping. ...
In this research paper, the author highlighted three main elements that impacted online shoppers as an individual, in such security & privacy matters, individual behavior in relation with convenience and expectations and social influence which all will be further discussed.
... The demand is becoming more critical to develop a new research framework and model to measure e-commerce success from the business point of view. Table 2 Sample researches into e-commerce satisfaction Terms References User satisfaction Power and Dickson (1973), Doll and Torkzadeh (1988) and DeLone and McLean (1992) citied in Kim (2005), Bailey and Pearson (1983) and Ives et al. (1983) cited in Kim (2005) Johnson andFornell (1991), Fornell (1992) and Johnson (1995) cited in Kim (2005), Molla and Licker (2001), Kim (2005) and Kumar and Petersen (2006) Customer information satisfaction Wang et al. (2001) Customer service satisfaction Lightner (2004) 3 Using the term of EBS to measure e-commerce success Little work has been done to understand whether there is any link between the available e-commerce systems and business satisfaction/failure. In literature review, no previous studies have been found in the area of business satisfaction with e-commerce systems. ...
For the last ten years, while many e-commerce systems have been successfully adopted in businesses across different industries, a significant numbers have failed, especially in Small to Medium Enterprises (SMEs). To date, no detailed academic or industry studies have been found in the field of business satisfaction with e-commerce systems. This research aims to develop an effective measure of e-commerce success from a business point of view, termed E commerce Business Satisfaction (EBS). This paper also describes the existing knowledge on satisfaction with e-commerce systems, and provides a research model for analysing EBS based on Gide and Wu's proposed EBS model.
... The rapid advances in information and communication technologies tend to develop virtual links between SMEs, contributing towards realizing collaborative relationships with trading partners and easing the virtual manufacturing processes (Chiu et al., 2006) thereby inferring that clusters do not necessarily have to be locally defined entities (Preissl and Solimene, 2003). In addition, they have been able to reduce costs and to improve the level of service to their customers through enhanced usage of information technologies (Kumar and Petersen, 2006). In contrast, however, the introduction of a business-to-business (B2B) trading networks increases the global market participation of firms from peripheral countries, but does not appear to reduce the importance of geographical concentrations (Zaheer and Manrakhan, 2001). ...
Purpose
– The purpose of this paper is to review the effect of a cluster approach on SMEs' competitiveness. The primary objective is to examine the use of a cluster approach among SMEs as a tool for meeting their challenges related to globalisation and trade liberalisation, as well as investigating its contributing factor in the process of increasing their competitiveness.
Design/methodology/approach
– The methodology used for this paper is a literature review of published materials. The literature analysis was performed based on research objectivity, coverage and authority.
Findings
– There is strong evidence to suggest that a cluster policy brings additional positive effect to existing SME policy in industrialised economies, but such effects have not been extensively researched in developing (transition) countries, particularly from the point of view of the SMEs, which are the main actors in the cluster development process, in relation to whether their performance has been improved as a result of cluster effects.
Originality/value
– The findings from this research will assist business managers in making more informed decisions regarding the adoption of a cluster approach and entering into cluster‐based relations, as well as assisting policy makers in designing more efficient cluster policies. The academic value will be added in the context of expanding knowledge in relation to the impact of clusters on economic development in transition countries and as such contribute in filling gaps within the existing body of knowledge.
This study aims to assess user perceived quality and its impact on sustaining the adoption of app-based ride- sharing services in the context of a developing country. Adopting the E-S-QUAL model as a theoretical frame- work, data have been collected from 250 ride-sharing app users in Bangladesh. Utilizing the PLS-SEM method, the structural model confirms that service quality is a hierarchical second order model which extensively impacts customer satisfaction and positively affects service loyalty. Specifically, fulfillment, security & privacy, system availability, and efficiency factors of e-service quality emerged as significant determinants of user loyalty and satisfaction. In addition, customer satisfaction fully mediates the relationship between service quality and intention to continue using the ridesharing services. The findings highlight the role of delivering high-quality digital services in fostering customer loyalty, commitment, and retention in the ride-sharing domain, particu- larly in developing economies. In addition, this study highlights that Bangladeshi perspectives on the sharing economy emphasize the need for better infrastructure, improved safety and privacy for women, and affordable, reliable service, insights that are also relevant for other emerging economies. Theoretically, this study extends the research of ridesharing services by applying the well-established E-S-QUAL framework while assessing the mediating role of customer satisfaction in ensuring service viability. Practically, it provides implications for ride- sharing platforms to enhance service attributes such as responsiveness, timeliness, and system reliability, thereby improving user experience and encouraging continued usage.
This article aims to examine the adoption of e-commerce by micro, small and medium enterprises (MSMEs) in Odisha. The quantitative survey approach was employed for the conduct of this research. A structured questionnaire was used to obtain the data from a sample of 100 representative MSMEs across the two administrative blocks in the Khordha district of Odisha. The relationship between the variables in this study was analysed by using binary logistic regression technique. The study found that most of the MSMEs had engaged in at least one form of e-commerce level, which is less than the desirable level. Further, the study provides an understanding of the factors responsible for e-commerce adoption by MSMEs in the district. The study found that three variables, that is, the number of staff with IT knowledge, interest to accept e-commerce and size of the business, are the major determining factors that influence MSMEs in adopting e-commerce. Significant challenges hindering e-commerce adoption among MSMEs in Khordha as identified in this study include problems with online banking, speed of the internet, lack of government support, problems in logistic support and lack of IT-qualified staff. Attention should continue to focus on improving the technical infrastructure needed to operate e-commerce and there is a need for media publicity to increase public awareness to push customers and employees to make use of e-commerce. The role of the government is also crucial in providing assistance and training that can help the use of e-commerce in the district.
Tujuan dari penelitian ini adalah untuk mengetahui apakah ada hubungan antara e-commerce terhadap kelangsungan usaha dan apakah ada hubungan Antara literasi keuangan terhadap kelangsungan usaha. Penelitian ini adalah penelitian kuantitatif dengan metode pemilihan sampel yaitu dengan metode purposive sampling.Teknik analisis yang digunakan dalam penelitian ini adalahkorelasi dalam pengujian hipotesis penelitian. Berdasarkan hasil pengujian pada penelitian ini bahwa hipotesis pertama diterima,e-commerce memiliki hubungan terhadap kelangsungan usaha. Berdasarkan hasil pengujian pada penelitian juga diketahui hipotesis kedua diterima, literasi keuangan memiliki hubungan terhadap kelangsungan usaha. Dengan adanya penelitian tersebut membuktikan bahwa dengan adanya e-commerce dan literasi keuangan berpengaruh terhadap kelangsungan usaha. Yang ditunjukan oleh perkembangan teknologi informasi membuat searang wirausahawan harus mampu menerapkan e-commerce dan memahami arti penting literasi keuangan dalam menjalankan usahanya. Kata kunci: e-commerce, literasi keuangan, kelangsungan usaha
This study examines the influence of firm cluster collaboration and the utilization of big data on the expansion of open innovation. We also investigate the effect of open innovation on business performance and test the moderating effect of social capital. We surveyed 409 global firms (193 large enterprises and 216 medium enterprises) located in Asia, Europe, North America, and Africa over a one-month period. We limited the scope of the survey to employees working at the level of team leader (or executive) or above in the R&D department. This study used SmartPLS (Version 3.3.3) to perform the statistical analysis. Our results indicated that, first, corporate cluster collaboration had a positive effect on the expansion of open innovation. Second, firm use of big data had a positive effect on the expansion of open innovation. Third, firm expansion of open innovation had a positive effect on business performance (market and financial performance). Fourth, in the relationship between cluster collaboration and open innovation expansion, social capital had a negative moderating effect. This research proved that cluster collaboration and big data could accelerate open innovation, ultimately improving business performance. However, there are limitations regarding SEM analysis.
Purpose: Customer Satisfaction is the top priority in all business sectors, so the effect of different variables was evaluated on customer satisfaction which is taken as the dependent. Independent variable is e-Payment, Logistic Service Quality, and e-Traceability. Moderating Role was studied of the Use of ICT (Information and Communication Technology). Methodology: This research was carried out on the logistic companies of major cities of Pakistan, including Islamabad, Peshawar, Lahore, and Karachi. The data was cross-sectional in nature and with the involvement of different geographical locations, data collection took a longer time. 400 questionnaires were distributed among the workers of logistic firms in the above-mentioned big cities of Pakistan. Only 298 responses were acquired out of which 258 were workable. Data were analyzed using SPSS-23. Main Findings: Findings reveal that the moderating role of ICT is insignificant on the relationship between e-Payment and Customer Satisfaction and the use of ICT enhances the Service Quality of Logistics and Customer Satisfaction. The beneficiary of the current research would be the logistics firms of Pakistan as it encompasses different aspects influencing logistic customer satisfaction. Logistic service quality is directly linked to the customer, so the current study can benefit the logistic firm in how to retain customers and ultimately how to increase profitability. Implications/Applications: Current research also describes the utilization of Information and Communication Technology so organizations can design their system according to the modern framework of technology. Novelty/Originality of this study: This research study is based on different logistic services of major cities of Pakistan. The direct impact of independent variables on a dependent variable will be studied along with the moderating effect of Use of ICT on the direct relationships. The practice of logistic services has been changed due to the emergence of the concept of service quality and relationship marketing. Traditionally, logistics has been thought to be a bridge between production and consumption.
Newly created ventures face many challenges, of which, successfully competing with rivals is a daunting task. In order to grow, and turn profitable, start-up firms must extensively search for strategies that create and sustain competitive advantage. Adoption of e-commerce is considered as a very potent strategy to beat competitors and generate profits. Taking tourism and hospitality, an information-intensive industry, this study set two primary objectives regarding e-commerce adoption. First, to investigate the antecedents of e-commerce adoption and second, to gather empirical evidences about the impact of e-commerce adoption on such firms. The study was motivated by the paucity of literature on adoption of e-commerce by start-up firms, especially in the tourism and hospitality industry. The empirical results showed that market- and organization-related factors were prime determinants of e-commerce adoption by start-up firms. The study also confirmed the improved performance of tourism and hospitality start-ups as a result of e-commerce adoption.
The advance of “One Belt One Road” initiative and “Internet+” strategy have greatly promoted the development of cross-border e-commerce in the past several years. To gain global competition, the small-and-medium-sized enterprises(SMEs) have focused on the revenues and risk. However, most previous studies have focused on consumer perceived risk, while neglecting the importance of sellers’ risk. It is the aim of this article to address the following question: With growing customer requirement in global marketing competition, customer requirement plays an important role in the successful design of SMEs risk mitigation solution as SMEs’s performance is highly determined by customer satisfaction in the customer-oriented market. How to identify the most important risk factor of cross-border e-commerce SMEs based on influence of consumer requirements? Therefore, to balance the mutual interests in cross-border e-commerce online transactions. In order to achieve these objectives. We analyse cross-border e-commerce SMEs’ risk factor and develop a hybrid method for risk evaluation and ranking, named Kano-fuzzy-DEMATEL. This new method offers a more accurate way to calculate the degree of relation among each risk factor considering the influence of consumer requirements and deal with uncertain information on risk evaluation, as to determine the risk priority for cross-border e-commerce SMEs. The ranking of risk factors can provide basis for decision-making and improve the accuracy of prediction. We supplement existing e-commerce research to assess the overall risk factors from the seller’s perspective based on the customer requirement. The study can provide comprehensive insights to mitigate risk.
In the background of Industry 4.0, cluster can improve its performance by focusing its efforts and spending its resources on some vital factors called critical success factors (CSFs). Identification of these factors is essential for performance improvements of furniture cluster. This paper reviewed the literature on CSFs and various supporting philosophies of industry 4.0. The paper studied the impact of these factors through interaction with various stakeholders. Focused efforts on these CSFs may help in channelizing the resources and efforts of cluster in maximizing the gains through quality and productivity improvements. The researchers can access the impact of these factors by undertaking quantitative analysis. The cluster can improve its performance and gain competitive advantage by concentrating on these factors. It helps clusters in developing the use of effectiveness data in their decision making. This paper contributes to providing a better understanding of CSFs for improving the performance of furniture cluster.
he small and medium-sized enterprises (SMEs), due to their inherent limitations and obstacles, do not have high productivity to participate in world class manufacturing (WCM). This has caused challenges and problems for them to attend global competitions. Organizing these enterprises into the form of industrial clusters would be one of the most important strategies to enable small and medium-sized enterprises to attend global competitions. By offering advantages for the enterprises within clusters, industrial cluster can play many roles to enable these enterprises. The present paper aims to study the role of industrial cluster to enable small and medium-sized enterprises to achieve a continuous competitive advantage in the fields such as quality, cost and flexibility (world class manufacturing). The effects of industrial cluster on the enterprises within that cluster can be divided into two general groups of structural factors (external advantages) and developmental factors. The structural factors are the effects and advantages – such as costs reduction, knowledge spillover, access to labor, etc-gained from the activities taking place within the region and the producers within the cluster enjoy them without paying high costs and vigorous activity. The developmental factors include those activities done by the external factor (state) to enable the enterprises within a cluster. The activities within Khuzestan Date Cluster are networking, institutionalization, and training. According to the results, there is a positive and significant relationship between cluster factors (structural and developmental factors) and world class manufacturing; that is, with the increase of the effective factors of cluster on date enterprises, the access to world class manufacturing increases, and vice versa. Meanwhile, developmental factors have greater positive effects. Abstract 2 Safavi and Bagheri
The global business landscape is undergoing a dynamic transformation due to the increasing penetration of internet and communication technologies. This article reviews the e-commerce literature to understand the emerging trends and future directions, which are shaping the competitive trends in the global business landscape. The article focuses on the following research dimensions – e-commerce definition; underlying research themes; theoretical models and frameworks used to understand e-commerce adoption; and key challenges faced by the e-commerce providers. The first contribution involves elaborating the broad perspectives and statistical overview of the selected articles including the publications summary, research themes, methodology, and locations. The second contribution involves presenting an integrated view of e-commerce definitions across five dimensions – information, technology, buy-sell transactions, monetary transactions and competition. The third contribution involves highlighting the theoretical models being used to study patterns of consumer behavior. The fourth contribution lies in identifying the key challenges faced by the e-commerce organizations.
Keywords: e-commerce, internet, literature review, e-commerce challenges, e-commerce definition
M-commerce (mobile commerce) is growing increasingly popular, and China has a huge potential to develop m-commerce technology. This study focuses on users' perspectives of m-commerce development in China. The development of m-commerce was measured by the extent of m-commerce businesses adopting business intelligence. A research framework was developed for users' perceptions on m-commerce development, survey questionnaires were used to collect data, and ANOVA was used for data analysis.
The usage of M-commerce (Mobile commerce) is growing in businesses. There are some important issues need to be addressed in M-commerce, such as integrating the function of business intelligence and information system management to m-commence, applying businesses process management into M-commerce. This study attempts to investigate some of those m-commerce issues. The empirical data is used to exam the usage of business intelligence in M-commerce, and whether the use of M-commerce would help improve business processes.
The purpose of this paper is to distinguish the impacts of e-commerce on marketing and operations functions and investigate how these impacts have affected performance of Taiwanese SMEs. We also investigate the moderating roles of size and e-commerce experience of SMEs on the e-commerce impact–performance relationship. We have used resource-based-view of a firm to provide the theoretical underpinning to understand how e-commerce adoption is linked to firm performance. We have conducted a survey and obtained 110 usable responses from Taiwanese SMEs. We first verified our variables to check they get grouped to marketing and operations effects using confirmatory factor analysis. We then identified their influence on performance using regression. Finally, we verified the roles of size and e-commerce experience using moderated regression analysis. Our results show that operations and marketing aspects of e-commerce have strong impacts on performance of SMEs. Size of SMEs, measured using number of employees, moderates the impacts of operations and marketing aspects on performance, while e-commerce experience, measured using the length of time SMEs have adopted e-commerce, does not moderate. Our results will help SMEs in general and Taiwanese SMEs in particular to understand the influence of e-commerce on their performance.
Purpose
Resource‐based view proposes that possessing valuable, rare information technology (IT) resources that competitors cannot easily reproduce or replicate provides a competitive advantage, but mere ownership of such resources is no guarantee of competitiveness. There is a need also for a strategy paradigm that embraces the wider concerns of social and environmental sustainability as pressing issues of the twenty‐first century. “Operations‐as‐marketing” is a proven value‐chain based paradigm that calls for transforming operations from merely focusing on internal efficiency into a potent strategic marketing weapon, precisely targeted toward fulfilling customers' needs. Many leading companies have discovered latent economic benefits from adopting the tenets of corporate sustainability. By first establishing that corporate sustainability translates commercially into customer‐centric, lean productivity, the paper examines the potential mediating role of an “operations‐as‐marketing” strategy in framing IT investment decisions.
Design/methodology/approach
The research uses path analysis, involving a sample of third‐party logistics (3PL) firms.
Findings
Evidence supports the leading contention, thus outlining a customer‐centrism approach to enhancing the financial performance of 3PL firms.
Research limitations/implications
The research demonstrates a proven decision‐making framework for guiding IT investments that can allow proactive nurturing of a competitive advantage. The main drawback is sample size, although established guidelines suggest adequacy and several diagnostics provided reassurance against any major statistical drawbacks.
Practical implications
In the face of globalization and other social and environmental issues, the model suggests three key areas of focus for IT investments in proactively enhancing firm performance. It should prove a useful extension to existing strategy literature in the face of an impending paradigm shift.
Originality/value
The paper makes two important contributions: it represents one of the first empirical studies to apply the “operations‐as‐marketing” paradigm to the strategic objectives of IT investment decisions, and it addresses a notable void in extant research by exploring a possible strategic link between IT and market orientation.
Expansion of electronic commerce has the potential to increase retail productivity.However, these gains may not translate into enhanced retailer profitability.This study examines profitability of the discount retail industry from 1981-1998,a period during which the industry realized significant productivity gains.Although productivity measures like inventory turnover and sales per employeeincreased during this period, industry profitability did not increase. Instead,consumers benefited from the increased efficiency through paying lower markups.The experience of the discount retail industry may indicate that retailersface a product price treadmill: gains in efficiency result in lower prices ratherthan higher profits. The projected efficiencies of the Internet and the expansionof electronic commerce may portend lower retail profitability but greater savingsfor consumers.
Firms must take full advantage of Net-based e-service opportunities, particularly in the transition of products to services, to garner long-term customer relationships and loyalty.
The current dynamic and turbulent business environment has forced companies that are competing in global markets to change their traditional methods of conducting business. Recent developments in Internet-based e-commerce offer the most exciting business opportunities in the marketplace. Organisations must re-evaluate every aspect of their manufacturing strategy and quickly move to a working mode where the Internet-based e-commerce is essential for their success. As the Internet develops it is possible that e-mail and applications-based technologies will take over from traditional telephony as the common method of communications. Furthermore, the Internet provides an unprecedented infrastructure for moving information. The real key to making e-commerce over the Internet a normal, everyday business activity is the convergence of the telecommunications, content/media and software industries. The business-to-business and business-to-customer segments of commerce contain both common and differing characteristics that must be understood to succeed in implementing an Internet-based e-commerce strategy. This study examines the benefits and drawbacks of Internet-based e-commerce and its possible applications for future business operations.
The interest of both researchers and practitioners around the use of Internet-based tools to support business processes has been quite high in the last few years. However, despite the initial enthusiastic expectations, it is still not completely clear whether these expectations have been translated into business reality. This paper explores the actual adoption of Internet technologies in supply chain processes by a large sample of European manufacturing firms participating in the IMSS survey. Four e-business strategies are identified and their relationship with contingent factors and supply chain integration mechanisms is investigated. Results show a close link between the use of Internet tools and the level of integration with customers and suppliers, thus suggesting the need to define e-business strategies in coherence with the use of traditional integration mechanisms.
Electronic business refers to the way of doing business electronically and has a great impact on business processes, particularly on integrated supply-chain management. However, most of these issues are descriptive and have often been mentioned without clearly indicating how the process can be implemented gradually and what this integration really requires. This study developed a framework to formulate electronic business capabilities and integrated supply-chain management capabilities, and then empirically tested a taxonomy that illustrated a firm's strategic positioning along these two components. The results from the Australian manufacturing industry indicated there to be four general strategic options that firms adopted: the Lagger, the E-Bus player, the ISCM player and the Integrator. Furthermore, the manufacturers tended to compete on three competitive dimensions simultaneously: information integrity, networking and joint efficiency operations, and B2B applications.
This paper deals with designing a bank risk classification scheme based on readily available performance data. This risk rating is referred to as ‘Risk rating’. Due to non-availability of data on CAMEL rating (C rating), R risk rating has potential for studying risk-based premiums insurance policy and for determining optimal frequencies for variable frequency on-site examination policy. A composite non-performance measure is developed to estimate probability of failure of a bank based on performance data available in bank call reports by fitting a Logit curve and estimating its parameters using maximum likelihood method. Division of banks into healthy and watchful types is based on critical dividing value of probability of failure.
This paper first provides an overview of developments in e-money and e-commerce. It then explores research on the economics of innovation to put these changes into a broader context. Lastly, the paper explores the potential implications of market structure changes in banking and commerce for the evolution of e-money.
Technological developments in e-commerce provide one of the most important challenges to B2B marketers currently. In this paper, we use a contingent approach to attempt to assess the likely impact of two forms of e-technology, Virtual Markets (VMs) and Interorganisational Systems (IOS), on two different ideal-type markets: competitive and relational. The contingency market model in each case comprises a basic market mechanism that is influenced and modified by the action of certain key contingencies such as product form, market structure, and market information. The impact of each e-technology in each market is assessed by reference to the way it affects one key contingency, market information. From this, the likely penetration of each e-technology in each market is qualitatively assessed. The key managerial implication is that managers need to understand the mechanisms and contingencies that affect their own particular situation, rather than expect to be able to apply general prescriptions.
This study investigated the impact of two organizational constraints, technological compatibility and operational capacity, on the success of business-to-business (B2B) electronic commerce (e-commerce) efforts over a range of business settings. We focused specifically on the transactional efficiencies gained through the use of B2B e-commerce. To accomplish this, we considered an instrument originally developed to measure the benefits of intra-organizational information systems and applied it in two inter-organizational contexts: electronic data interchange (EDI) usage, and B2B technology usage by firms without EDI. Analysis was carried out on 86 firms in the consumer electronics industry, approximately half of which were product-manufacturing firms and the other half service-providing firms. Our findings showed that the inter-organizational context had a significant bearing on which constraints have a greater impact on the success of B2B e-commerce efforts.
Manufacturing industry worldwide has been facing unprecedented challenges brought by ever changing, global and competitive market conditions as well as changing social demands, regional, governmental and environmental regulations. E-commerce and Internet technologies injected “velocity” into the front business activities and enabled companies to shift their manufacturing operations from the traditional factory integration philosophy to a supply chain-based e-factory philosophy. It transforms companies from a local factory focus to a global enterprise and business focus.This paper introduces e-manufacturing as a new concept to answer the aforementioned needs of business strategies for complete integration of all business elements including suppliers, customer service network and manufacturing units by leveraging the Internet, web-enabling, tether-free technologies and computational tools. Enabling tools will be introduced to support e-manufacturing includes the ability to monitor the plant floor assets, and predict the variation and performance loss for dynamic rescheduling of production and maintenance operations, and synchronize with other related business actions to achieve a complete integration between manufacturing systems and upper-level enterprise applications. Finally, infotronics technologies for next-generation e-manufacturing transformation are discussed.
Electronic marketplaces (e-marketplaces) have a profound influence on the way in which organizations manage their supply chains. Proponents of the e-marketplace concept suggest that web-based trading systems, such as World Wide Retail Exchange (WWRE) and GlobalNetXchange (GNX), would enable companies to more efficiently buy, sell, and manage their supply chain processes on a global scale. This study investigates the extent to which e-business tools of the e-marketplace are used by channel members in the retail sector for business-to-business supply chain management (SCM). The study is based on a survey involving food service companies, retailers, and wholesalers in the UK. It is shown that the e-marketplace supply chain applications enable the majority of companies to automate transaction-based activities and procurement-related processes rather than strategic supply chain activities. The results also indicate that full participation in e-marketplaces requires companies to integrate their internal and external supply chain activities and share strategic information.
Newly emerging markets such as e-commerce-"the frontier of the new millennium"- are showing tremendous growth potential. The rising popularity of e-commerce may be due to the premises underlying the common belief that high-growth markets are inherently attractive. But such markets should not be taken for granted as must-go-after business opportunities. Those assumptions cannot withstand scrutiny, tempting and tantalizing as they are on the surface. In fact, e-commerce is more like a minefield riddled with high risks. We must go back to the drawing board and approach high-growth markets with the same discipline as any other business opportunity.
Value networks emerge as model in supplier/customer relationships
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Motor carriers embrace Web-enabled service
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Transporters move to
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Staples.com customer service No. 1 - CTO Mike Ragunas attributes cross channels of distribution as key to Staples' online success
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Satisfaction guaranteed – make your customers love you and keep them coming back for more with these all-in-one services
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