E-business Strategy Research Articles

Classeek Spirits of the World: E-Business Internationalization

This case study examines the motivations and barriers to small firm internationalization. The entrepreneur's human and reputational capital, experience and knowledge are leveraged to address barriers. An e-business platform strategy is illustrated. At a secondary level, the case also demonstrates the challenges inherent in revitalizing family businesses over generations of ownership.

Using structural equation modelling for investigating the impact of e-business on ICT and non-ICT assets, processes and business performance

This paper investigates the impact of adopting an e-business strategy on two organizational characteristics which have gradually become highly important for organizations in the last 20 years, information and communication technology (ICT) assets and business processes, and also on a ‘traditional’ one, the non-ICT (regular) assets, and finally through them on business performance. Its theoretical foundations are the Contingency Theory of Organizations in combination with the Cobb-Douglas Production Function. Advanced quantitative techniques of structural equation modelling (SEM) have been employed, which allow the estimation of complex multi-layer models including mediator variables that are both dependent (i.e. affected by others) and independent (i.e. affecting some others) at the same time, and enable the investigation of complex networks of relationships. Firm-level data collected through a survey of 271 Greek firms have been used for estimating a SEM connecting the above variables. The results show that the adoption of e-business strategy by Greek firms leads to adaptation of their business processes, which has a positive impact on their business performance, but not to additional investment to ICT or non-ICT assets. In particular, e-business drives Greek firms’ processes adaptations aiming mainly to increase the non-hierarchical decentralized coordination within the firm, in order to cope with the higher task complexity and uncertainty that e-business gives rise to, and also to respond to the specific technical and operational requirements that this strategy poses.

A New Approach for Enterprise Application Integration

In the last few years, there is a significant growth in enterprise computing. In a typical large enterprise, more than thousands major application systems are logically interconnected to support enterprise’s business process. With the Internet technology grows explosively, most enterprise organizations adopt e-business strategy. Enterprises sometimes have to merge with other enterprise, reorganize their internal structure, and adopt new technologies and platform as they strive for competitive advantages. Enterprise application integration(EAI) provides enterprise with the option to leverage their existing systems and integrate them with new application to enhance functionality. Connector, which is a software component, is an essential layer in the EAI architecture. It provides connectivity between application and integration server.

Business Models and Firm Performance: Based on the Information Technology View

This paper examines strategic issues related to the emerging concept of business model in the context of China’s securities industry. Through a brief literature review, theoretical connections between strategy and business model are proposed, and the key components of business model are identified. A research hypothesis concerning the relationship between e-business strategy and e-business model is then developed by refining relevant concepts. Accordingly, an empirical analysis is conducted, based on an online survey on 57 securities companies certified for online securities businesses in China. Overall, research findings indicate tentative support to the research hypothesis. Theoretical and practical implications are also drawn.

Relevance of Information Systems Strategic Planning Practices in E-Business Contexts

Increasing global competition and advances in Internet technologies have led organizations to consider e-business strategies. However, evolving e-business strategies have been identified as a critical issue faced by corporate planners. The relevance and the use of IS (Information Systems) strategy planning practices in the context of e-business have been argued among researchers. In this paper, the authors investigate whether organizations can successfully improve the IS value in the e-business context by suitably extending and modifying IS planning practices. To achieve this objective, the authors use a longitudinal case study of an Indian automotive manufacturer to critically evaluate ‘why’ and ‘how’ e-business strategies differ from IS strategies. The authors compare and analyze five important planning parameters (strategic alignment, technological environment, formalization, role of the IS function, and implementation planning) and the IS value of both IS and e-business contexts. The research reveals that the e-business contexts are characterized by significant changes in planning parameters. Extending IS planning experiences and proper management of these parameters results in successful e-business strategies. The paper is concluded with a set of implications for deploying e-business strategies in developing countries and directions for future research.

EBDMSS

This paper describes a Web-based intelligent decision making support system (DMSS) to deliver balanced scorecard (BSC) based modelling and analysis in support of strategic E-business management. This framework supports E-business managers during the strategy making process in a comprehensive, integrated, and continuous manner. The paper demonstrates how practitioners can use this system to deliver a wide range of embodied E-business strategy expertise in support of real-time decision making.

Management of Security and Security for Management Systems

Political and military events, coupled with the accelerating frequency of cyber attacks on network/IT systems and technical revelations of management protocol insecurities, underscore the substantial risks associated with network, systems and applications management. Through management systems, rogue elements can perpetrate targeted as well as system-wide fraud, theft of services, and disruption of capabilities and management data. Worse yet, due to the extended, pervasive reach of management systems, rogues can get a stranglehold on the IT and networking resources of an enterprise, entire industry sectors, even national critical infrastructures or governments. Consequently, interest in the security aspects of management systems has sky rocketed. Security is an essential feature, not an after-thought, of an information enterprise. The commercial sector is pursuing double-digit growth rates for IT and network security spending. Corporations embracing e-business strategies that involve integration of systems and resources with business partners want assurances that their internal resources will not be compromised by vulnerable management systems, internal or external. Corporations and governments remain at risk for cyber attack on mission-critical management components. Legislation is making security an R&D priority. This special issue of Journal of Network and Systems Management focuses on topics associated with both the management of security in telecommunications, network, and systems environments, and the security for management systems in such environments.

Benchmarking firms' operational performance according to their use of internet‐based interorganizational systems

PurposeDrawing on the concepts of benchmarking and of fit as profile deviation, the purpose of this paper is to identify the critical dimensions of usage of internet based interorganizational systems (IOISs) of the best performing firms.Design/methodology/approachEmpirical evidence is gathered through an electronic survey conducted with 228 manufacturers in the computer and electronic product manufacturing sector.FindingsData collected demonstrates that: volume of use and depth of use are the two critical dimensions of internet based IOISs usage on the supplier side; volume of use, level of integration, diversity of types and depth of use are the four critical dimensions of internet based IOISs usage on the customer side; and a deviation from these patterns of internet based IOISs usage should result in poorer operational performance. Statistical analyses also show the relative importance of each of the critical dimensions of internet based IOISs usage on both the supplier and customer sides of the supply chain.Practical implicationsThe paper findings indicate that manufacturers in the computer and electronic product manufacturing sector should not approach their supply chain management and eBusiness strategies from a single business network perspective; rather, they must take into account the specificities of their downstream supply chain to implement an internet based IOIS strategy that will satisfy the diversified needs of their customer base.Originality/valueThis paper is the only one to date that draws on both a benchmarking approach and contingency theory to assess the impact of internet based IOISs usage on a firm's operational performance.

Key website factors in e-business strategy

The design of a quality website, as part of e-business strategy, has become a key element for success in the online market. This article analyzes the main factors that must be taken into account when designing a commercial website, concentrating on the Aceros de Hispania company and its business model. We have studied the features which determine website quality: accessibility, speed, navigability, content, and we have calculated the Web Assessment Index (WAI) proposed by Miranda and Bañegil [Miranda, F. J., & Bañegil, T. M. (2004). Quantitative evaluation of commercial websites: An empirical study of Spanish firms. International Journal of Information Management, 24(4), 313–328]. The results obtained provide several lessons which should be borne in mind when designing a commercial e-strategy. Firstly, it can be observed that Internet popularity and search engine positioning facilitate entry to practically inaccessible markets. Secondly, the navigability makes users feel comfortable and secure when browsing it, which increases the probability of a transaction being completed. Finally, the information provided on the website must be accurate, informative, updated and relevant to customers’ requirements. Like Aceros de Hispania, any company, thanks to the Internet, will be able to overcome the barriers which would impede its successful worldwide development in the offline market.

Drivers of a tourism e-business strategy: the impact of information and communication technologies

The possible interactions among tourism organizations, their customers and other organizations are considered in this article. Based on these interactions, three drivers of an integrated e-business strategy in the tourism sector are suggested: (1) customizing tourist products, personalizing services and supporting mobile services, (2) sharing tourism information and operational data, and (3) offering tailor made products and supporting user-generated content. In order to emphasize our suggestions, the most representative figures derived from recent surveys conducted by the Sectoral e-Business W@tch are selected and analyzed. These figures are: (a) the use of customer relationship management applications in tourism and the importance of mobile services for different sectors of the economy including tourism, for the first driver, (b) the use of supply chain management systems, online purchasing and finally the use of broadband Internet as a complementary indicator, for the second driver, and (c) the use of ICT-enabled product and process innovations and dynamic packaging, for the third driver. The clear positive tendencies of these figures indicate the rising importance of our suggested directions as basic drivers of a tourism e-business strategy.

Impact of industry type, ownership and company size on Chinese firms' e-business strategy

Using surveyed data from 307 international trading companies in China, this research explored e-business strategies in China with focuses on investigating the strategic importance, opportunities and benefits of e-business, e-business implementation and environment. The impacts of organisational characteristics, including ownership, industry type and company size, were also examined. This study found that the internet had become a common tool in international trading companies as a strategic channel to collect business information. E-business may bring different benefits and opportunities to different levels for companies with different organisational characteristics. The companies with different organisational characteristics might face different levels and types of environmental pressure and opportunities, and they adopted and assimilated different e-business solutions to different levels.

Strategies for implementing the internet within the Saudi private sector

The internet has become an increasingly popular tool for business. It is frequently perceived as a revolutionary power in today's business, as it is becoming a fundamental and necessary vehicle for transaction and communication between companies. This advancement in using the internet as business tool has attracted many academics and practitioners to find the best strategies for implementing the internet within the business domain. This paper attempts to identify the main strategies to implement the internet within the business domain, more specifically within the Saudi private sector. This paper starts by identifying the importance of using the internet in the business domain and follows by identifying the different strategies applied in using the internet. These strategies are analysed and possible opportunities and limitations for each strategy are presented, together with elements for successful e-business strategy. The final part of the research concentrates on the Saudi private sector and the possible implantations of these strategies. In addition, the concept of strategic change is introduced with regard to e-business and how that is reflected in the Saudi private sector. The final part of this paper gives possible conclusions and recommendations with regard to implementing e-business strategy in the Saudi private sector.

Strategic use of the internet and e-business: the 'Celta' case at GM Brazil

The internet provides a global network infrastructure that is shifting business models, strategies and processes. Many authors reflect on the importance of incorporating e-business into the firm's global strategy. This paper deals with these issues in discussing the introduction of e-business activities by General Motors (GM) Brazil, specifically in connection with the launch of the Celta, an entry-level car designed to be sold on the internet. A historical examination of e-business strategy shows that many organisations have formulated excellent conceptual strategies for e-business but failed to deliver sound execution. A key to successful internet strategies is the leadership shown by senior management. Technological demands may also conflict with the successful implementation of e-business initiatives, requiring greater interaction between the CEO and the CIO. The importance of integration between employees on the business side and in Information Technology (IT) is highlighted in the context of GM Brazil's strategic objective of growing the market for lower-price cars.

The asymmetries in strategic alliances of MNEs subsidiaries in Taiwan

Strategic alliances play a critical role in the business of Multinational Enterprises (MNEs), such as HP and IBM, which are under pressure because of ongoing e-business transformation. This study explores the phenomenon of strategy differences in allying with Taiwan local companies between two e-business MNEs, IBM and HP, subsidiaries under technological changes and globalisation. We find that, even though the subsidiaries have followed the e-business strategies inherited from their parent companies in some ways, the motivations for IBM Taiwan and HP Taiwan to ally with local firms are consistent with Dunning's reappraised eclectic paradigm. Our findings also indicate that these two MNEs subsidiaries ally asymmetrically with local firms by using non-equity alliances. In addition, we find that Taiwanese partner firms have a particular interest in forming scale (horizontal) alliances with e-business MNEs. Specifically, this study extends the explanations and implications of the Familiarity Matrix, links it to the OLI model and explores the role of technology in MNEs international strategic alliance activities.

The establishment of an e-business strategy model from traditional theories

The growth of e-business presents companies with both opportunities and challenges. In this environment organisations need timely and sound e-business strategies. This paper, as a part of a research project, offers an e-business strategy model from long-standing traditional economic, accounting, and other related theories. This model can provide quantitative support for strategic decision making in an e-business. A short example of an empirical study is also given to show the potential use of the strategy model.

The mitigating effects of uncertainty on ‘e’ innovation propensity: some service sector evidence

This paper reports the findings of a study that sought to explore a range of technical, financial and social issues that the literature suggests influences e-innovation propensity. The research was conducted on a sample of knowledge-intensive business service SMEs in Northern Ireland, Republic of Ireland and New Zealand within a business-to-consumer context. Qualitative methodologies (in-depth interviews and projective techniques) were employed to investigate the research problem. The findings highlight a number of specific issues that call into question the value of an e-business strategy, such as uncertainties surrounding knowledge acquisition, disintermediation effects and sustainability of an e-business. These issues continue to negate e-innovation propensity. The paper proposes practical suggestions to alleviate the mitigating effects of uncertainty that are impacting on e-innovation propensity. The conclusions derived from this research, along with the modelling of the uncertainty factors extend existing knowledge and also set the precedent for further empirical research in other country and industry settings.

E-business: issues, challenges and architecture

At present, a large number of organisations are spending huge amounts of their budget on Information Technologies infrastructure. It has been found that most of these investments are not utilised efficiently and effectively. This paper reviews some of the major challenges, and management and technical issues related to an e-business architecture design and implementation. It discusses the importance of alignment of e-business strategy with e-business architecture, reasons for failures of e-businesses, success factors and risks. The paper also proposes a high-level Web Service-Oriented Architecture (WSOA) for e-business. The proposed architecture specifies a methodology to progressively deploying e-business through instantiations for each business interaction (e.g., B2B), and the requirements for its implementing technology platform. Service-Oriented Architecture (SOA) has emerged as a better methodology for Enterprise Architecture (EA). The WSOA is composed of three layers: business processes, an interactions manager and disparate information systems. This approach offers significant advantages over the traditional e-business architectures.

One-Size E-Business Adoption Model Does Not Fit All

This empirical study of organisational e-business adoption, utilising both qualitative and quantitative data collection methods, examines four major factors influencing adoption in multiple e-business process domains. Support is found for the proposition that factors influencing e-business adoption behaviour have different levels of impact across different e-business process domains. Different combinations of factors influence different ebusiness processes and for the most part this occurs independently of organisation size/resource capacity. For example, governments and powerful supply chain organisations have strong influence over some organisational e-business strategy. In particular, e-government influence is strong with regard to use of e-mail and external web sites due to government’s legislative and regulatory compliance power. However, government influence is weak with regard to operation of an organisation’s own web sites. A conceptual model of antecedents and performance outcomes of e-business adoption is modified to take account of findings from this study.

Strategic e-Business Decision Analysis Using the Analytic Network Process

The rapid global deployment of electronic business (e-business) and information systems has required managers to make decisions that seek to balance technical factors with strategic business goals. This research utilizes the analytic network process (ANP) to provide insight into optimum-seeking decision processes by managers, as investments are made to utilize e-commerce technologies. The nonlinear network approach of ANP was used to study the "systems with feedback" where the e-commerce strategy may both dominate and be dominated, directly and indirectly, by the business-level strategy. This study analyzes e-business decisions in organizations, based on management heuristics and perceptions of expected contributions of e-commerce strategies, as well as the business-level strategies. The ANP research methodology process is employed since it is well suited for the study of a multi-attribute decision problem to explore qualitative and quantitative preferences of top managers in independent, nondiversified firms involved in e-business. ANP is used to model decision complexities involved in integrating e-commerce innovation into the overall strategic planning of firms. Optimal e-business strategies are chosen by using systems-with-feedback, where interdependencies between four virtual e-commerce domains and two generic business level strategies are explored. This study obtained significant results and identified several important avenues for further research. Implications for theory and research are discussed.

Reconsidering the source of value of e-business strategies

Over the past decade, many academics and practitioners have written extensively on e-business strategy, yet the source of value creation in e-business is still not fully understood. This paper examines the recommendations made by the existing e-retailing literature and reviews e-business strategies suggested in some of the literature. It also provides future research directions of e-commerce strategies as well as issues that e-business companies should take into consideration when formulating their strategies. Copyright © 2007 John Wiley & Sons, Ltd.