The Influence of Quality on E-Commerce Success

This research addresses difficulties in measuring e-commerce success by implementing the DeLone and McLean (D&M) model of IS success (1992, 2003) in an e-commerce environment. This research considers the influence of quality on e-commerce success by measuring the information quality and system quality attributes of an e-commerce system and the intention to use, user satisfaction and intention to transact from a sample of respondents. This research provides an empirical e-commerce application of the updated IS success model proposed by DeLone and McLean (2003). This paper found significant relationships between Information Quality and System Quality and three success dimensions: intention to use, user satisfaction and intention to transact. It found the following constructs to be most important in predicting success: ease of understanding, personalisation and reliability. In particular, that reliability is more important than usability where transactions are concerned and security though important, is not the most important factor.

From Virtual Organization to E-Business

This article shows how the technical hype of 1990s has been transformed into the e-business organizations at the beginning of the 21st century. The authors took an interpretive stance in this study, grounded theory, and investigated the ontology of virtual organization by the metaphorical analysis. The metaphorical analysis adopted in this study provides the analytical power to conceptualize the social structure of virtual organization in the context of structuration theory with the process of grounded theory. As the e-business structuration indicates in this study, virtualization, the metaphor of virtual organization is interpreted as flexible domination, where the rational relationships in power distribution with other e-business characterized temporal (virtual) bond with low switching costs.

The Impact of the Internet on Marketing Strategy

This conceptual paper revisits and reviews early milestone literature of influential authors, who discuss the impact of the Internet on major forces that shape a company’s marketing strategy to assess whether their futurist predictions and conceptual claims turned out to be true or were later falsified by empirical research or market experience. In particular, the impact of the Internet on customers, design of products/services, pricing, marketing communications, intermediaries, publics, and social/cultural environment is explored. Throughout the paper, related under-researched and unsettled areas are discussed and future research avenues are suggested.

An Empirical Study of Predicting Hong Kong Consumers’ Online Shopping Intentions

The digital technologies that have made electronic commerce (EC) a reality have changed the landscape of operations management (OM). Past OM studies have focused on the relationship between information systems (IS) and OM strategy, however, there is a lack of investigation into the environmental factors and OM strategy in the EC setting. Moreover, little empirical research has been performed outside Europe and the United States. Thus, the authors’ research fills this gap with a view of understanding the potential factors influencing Hong Kong consumers’ online shopping intentions. The authors collected data from Facebook users via a Web-based survey and their research results support the previous literature and behavioral models in that perceived usefulness and perceived convenience and inconvenience are significantly related to consumers’ online shopping intentions. Further, gender difference plays a role in predicting consumers’ attitudes toward the positive features of online shopping, as well as predicting personal innovativeness toward information technology. In the collectivist culture of Hong Kong, the findings show that men are positively associated with the subjective norm. Unlike gender, education can only explain consumers’ perceived usefulness.

An Exploratory Look at Attributes of Internet Use and Adoption by Franchisees

This case study explores the attitudes and perceptions of franchise owner-operators in regard to their acceptance of advanced Internet innovation and technologies. Because these franchisees serve a dual role as both the decision maker and the end user of new technology and innovation, they provide a dichotomy of perspectives that yield insights into many aspects of business leadership, customer service, and operational proficiency. Findings suggest five key attributes of Internet use and adoption by franchisees. The data in this exploratory case study also reveals three areas of disparity regarding franchisee behavior worthy of consideration by practitioners and academics: (1) The inward focus of franchisees, (2) project costs are considered superficially, and (3) the micro SME as change agent. This research is significant and accretive by capturing the voice of franchisees in regard to Internet acceptance and by providing a strategic look at how the franchise micro SME is significantly different than non-franchised and larger SMEs.

A Trade Value Perspective on Ecommerce Research

The impact of web-based electronic commerce on the process of disintermediation and re-intermediation has been extensively studied. Two major limitations of the existing work are the focus on a single economic measure (i.e., transaction cost minimization) and the examination of channel-structure decisions from only a single perspective (the seller’s). This paper introduces transactional value theory in the context of channel-structure research and integrates it with transaction cost theory to generate a trade value framework. The trade value framework considers channel-structure decisions from the perspectives of both buyers and sellers and is used to analyze the impact of web-based e-commerce on intermediated channel-structures. The proposed framework suggests that intermediaries function best in a channel-structure if they can reduce trade-inhibiting factors and improve trade-enhancing factors. Intermediaries may also prosper if they deliver extraordinary value on one side of the trade value framework to the point that inhibiting factors on the other end of the trade can be overlooked. Intermediaries maximize the value of the trade for both the buyers and the sellers by trading through an intermediated channel-structure as opposed to trading directly.

To Bid or to Buy?

Online retailing is a rapidly expanding business. There are three major purchasing channels for online shoppers to choose when they conduct online purchasing: (1) shopping in online stores, (2) bidding in online auctions, and (3) direct purchasing in online auctions. Each channel has its strengths and weaknesses, and suits different kinds of online shoppers. This article explores the relationships between online shoppers’ lifestyles and their preferences for online purchasing channels. Knowledge about online shoppers’ preferences for online purchasing channels helps online retailers place right products in the right channel for the right customers and consequently generate stable revenues. Major findings are: (1) the online shoppers with extravert lifestyle prefer online auctions, (2) the online shoppers with indulgent lifestyle prefer online stores, and (3) the online shoppers with shrewd lifestyle have a more balanced preference for all three purchasing channels. Theoretical and practical implications are discussed.

A Study of the Impact of Individual Differences on Online Shopping

Previous studies explored the effects of individual cognitive and affective reactions on online shopping and those of individual differences on usage of information systems. However, few studies evaluated how individual differences affect online shopping. This paper draws on the theory of reasoned action (TRA) and the technology acceptance model (TAM) as it attempts to gain understanding of individual difference impacts on online shopping attitudes. The model was tested using data collected from a Web survey, and 171 questionnaires were collected and analyzed. Results show that online shopping experience, level of Internet usage, cognitive absorption, personal innovativeness, and computer self-efficacy positively influence online shopping attitudes, and that perceived usefulness is a significant mediator, but only between online shopping attitudes and two individual differences variables: the level of Internet usage and cognitive absorption.

Governance Mechanisms in Internet-Based Affiliate Marketing Programs in Spain

Internet-based affiliate marketing programs have emerged as one of the fastest-growing methods for online retailers to acquire customers and increase sales by tapping into the power of independent web sites to reach a large, diverse audience of potential customers. However, while these programs have proven effective in increasing website traffic and sales, illegal or inappropriate activities on the part of affiliates could negatively impact a retailer’s brand in the eyes of customers. This study is an exploratory analysis of governance mechanisms (formal contracts, partner selection, incentives and monitoring) in one-to-many affiliate programs in Spain. Agency theory and transaction cost analysis provide the theoretical background. The conclusion is that there is a significant lack of transparency in the guidance and restrictions communicated to affiliates, and a lack of systematic monitoring of affiliate behavior, which increases the risk of opportunism or misconduct. General recommendations for managers of affiliate programs are considered.

Towards an Understanding of User Acceptance to Use Biometrics Authentication Systems in E-Commerce

Security is an increasingly important issue for business, and with it, the need for authentication. The use of biometric systems for personal authentication is a response to the rising issue of authentication and security. As with any new technology, user acceptance is often hard to measure, thus, in this work, a study of user acceptance of a biometrics authentication system in e-commerce, such as online banking within the Saudi society, was conducted. The study examined whether Saudis are practically willing to accept this technology by involving 306 participants in a large scale laboratory experiment that actively tested a biometric authentication system in combination of a survey. The Technology Acceptance Model (TAM) was adopted as the theoretical basis to develop the research framework in which the model has proven its efficiency as a good predictor for the study’s application.