Abstract
The objective of this study was to understand the changes that took place in large multinational industries acting in the physical world that, by adopting e-business, started acting in the virtual world, as well as the needs that led to this adoption. Method: multi-case study with two companies, a national industry (“A”) and a subsidiary of a developed country (“B”) in Brazil. Results: In terms of motivation, both companies mentioned an increase in revenue, but “B” highlighted its alignment with global strategy, focused on innovation and e-business, as a “showcase” of the company’s innovative side. Logistical transformations: “A” hired a logistics operator; “B” developed internally adapted logistics, taking advantage of knowledge from its headquarters.
Highlights
Most large industries established in Brazil have their roots in the “physical world” and did not have activities in the “virtual world” at the time when the Internet came to be
The goal of this study was to understand the changes caused by the adoption of e-business or, e-commerce, in large multinational industries that acted in the physical world and started acting in the virtual world, as well as the needs that led to this adoption
We describe the concept of e-business, understood as an innovation, and how this innovation is related to the concepts of organizational structure and logistics, followed by the concepts of Brazilian and foreign multinationals
Summary
Most large industries established in Brazil have their roots in the “physical world” and did not have activities in the “virtual world” at the time when the Internet came to be. With the advent of the Internet as a business tool, many companies began to understand that this tool could be a way to further their business, leading companies to adapt their operations to the virtual world and expand their commercial frontiers. Turban et al (2006) [1] define “e-business” as activities that use the Internet to facilitate the trade (purchase and/or sale) of goods, the provision of services to the consumer, collaboration with commercial partners and the performance of transactions within an organization. Large industries historically did not directly connect to their end clients and required that middle-men could make such a connection. Mehta & Shah (2011) [2] identify several reasons to incorporate e-business as a new distribution channel for companies, with particular emphasis on the potential for geographic expansion and greater exposure in current markets
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