A value chain perspective of internet practices, e‐readiness and organizational performance

Abstract

PurposeThe internet has become a ubiquitous technology for business and it possesses the potential to make the concept of value chain into a more attainable reality. The purpose of this paper is to conjecture that the way the internet is utilized and the extent to which the internet impacts business performance vary from country to country. The paper aims to compare two countries regarding the pattern of internet utilization, the impact of the internet on organizational performance, and the readiness for the internet from the value chain perspective.Design/methodology/approachA survey study was conducted with CIOs and IS directors in the USA and South Korea. A research instrument was developed by adopting and revising two existing instruments on IT value chain and on business internet practices.FindingsThe findings suggest that the two countries are more similar in the way they utilize the internet than anticipated despite discernable differences observed in some areas of internet utilization. The study also provides an empirical evidence for the connection between the organization's readiness for the internet and the impact of the internet on organizational performance.Research limitations/implicationsVarying sampling and data collection processes between the two countries may have introduced unintended bias to the study.Practical implicationsThe findings of the study provide empirical evidence that the internet has become a truly global business tool that makes the concept of value chain an achievable reality.Originality/valueThis comparative study makes a unique contribution for both academicians and practitioners to gain a better understanding how the internet is adopted and utilized in different countries and to chart a course to capitalize on the technology from a value chain perspective.