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Impact of e-commerce in lowering operational costs and raising customer satisfaction

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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.

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... 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. ...
Conference Paper
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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.
... 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. ...
Article
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.
... 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]. ...
... . Competition between businesses (A large number of competitors have used e-commerce)49. Government support (Government support in the form of activity and financial programs for e-commerce implementation) 50. ...
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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.
... 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. ...
Article
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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.
... 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 ...
Article
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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.
... 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. ...
Thesis
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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.
... 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. ...
Article
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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.
... 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. ...
Article
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.
... 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? ...
Article
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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.
... 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). ...
Article
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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). ...
Chapter
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.
... 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. ...
Article
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.
... 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. ...
... 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. ...
Article
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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. ...
Article
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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). ...
Article
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.
... 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). ...
Article
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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. ...
Article
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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.
... 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. ...
Chapter
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.
... 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. ...
Conference Paper
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.
... 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. ...
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... [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. ...
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... 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. ...
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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.
... 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). ...
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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.
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To supply chain network design problems with considering E-commerce of scale and further demand fluctuations, a reliability evaluation method is developed to evaluate the performance of plants under demand fluctuations. In addition, a mathematical programming model is developed to determine the optimal adjustment decisions regarding production reallocation among plants under different fluctuating demands to decrease cost and improve efficiency in e-commerce. Detailed simulation results and comparisons with the existed scheme prove the validity of the proposed model.
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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.
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