The Effect of Electronic Commerce in Business Value and Supply Chain Process: Evidence from Iran

Abstract

This paper aims to develop and test a model to analyze the relationships between three aspects of technical electronic commerce (EC)-based information system (IS) resources and, the supply chain process integration, and business value. The paper is consistent with the perspective on IS-enabled organizational capabilities and resource based view of the firm. A questionnaire-based survey was conducted to collect data from 204 supply chain, logistics, or procurement/ purchasing managers of manufacturing firms. Findings show that supply chain process integration, a key EC-enabled organizational capability, can enhance business value. Additionally, the capability serve as a catalyst in transforming technical EC-based IS resources (technical quality of EC applications, EC advancements, EC alignment and E-branding) into higher value for a firm. Our results suggest that supply chain process integration is an important intermediate organizational capability through which value of EC-based IS resources can be materialized. However, the technical aspects of EC-based IS resources needs to developed to effectively form supply chain capabilities. Key words: Supply chain integration; Business value; Electronic commerce; Business performance; Resource-based view; Information system; E-branding