Asia pacific journal of information systems

The Korea Society of Management Information Systems (한국경영정보학회)
권호 표지

The Impact of Competitive Environments on the Configuration of e-Biz Integration Determinants and the Business Performance

경쟁적 환경이 e-Biz통합의 결정요인 구성과 경영성과에 미치는 영향

  • Han, Bong-Ho (Graduate School of Busness Administration, Inha University) ;
  • Kim, Chul-Soo (Division of Business Administration, Inha University) ;
  • Seo, Chang-Soo (Division of Business Administration, Inha University)
  • Received : 2011.01.01
  • Accepted : 2011.05.11
  • Published : 2011.06.30
Download PDF
⟨ Previous Next ⟩

Abstract

These days, firms are focusing on the improvement of relationships with business partners. The supply chain integrations are taking critical role in improving the relationships with business partners. In accordance with the development of the IT technology, it became possible for firms not only to integrate inner parts of the organization, but also to integrate the company with other organizations in the supply chain. Therefore, in e-Biz environments, it is imperative for firms to strengthen the core capacity through the supply chain, and to precisely determine the components of the determinants of e-Business integration which impact the firm performance. This study analyzed determinants that have impacts on e-business integration in e-business capacity perspectives in competitive environments. This study based on the premise that the resources and capacities that Grant(1991) and Hart(1995) emphasized do not directly influence the corporate performance. This study focused on the fact that corporate must create core competencies based on these capacities to establish competitive edge. Therefore, this study model analyzed to find out which e-Biz competencies are needed to integrate e-Biz according to competitive environment elements. This study designed to empirically analyze the impact of the e-Biz competencies to the e-Biz integration and to the corporate performance. Independent variables of this study-IT management, partner management, e-Biz knowledge, e-Biz establishment and proliferation, process innovation-are selected based on precedent studies on e-Biz competencies. We selected intermediate variables to verify that e-Biz competencies do not have direct impact on the corporate performance, but have impact on the e-Biz integration, which is intermediate effect. That is to verify that if the components of supply chain improve the integration level using e-Biz competencies, the overall supply chain performances will improve. Dependent variables are selected to verify that e-Biz integration has impacts on corporate performances. This study used factor analysis, path analysis, moderating effect analysis as statistical tests. First, we used exploratory factor analysis and confirmatory factor analysis to analyze reliability and validity. Because e-Biz competencies are presented variously by preceding studies, we used SPSS16.0 to verify if survey questionnaire used by theoretical backgrounds is properly composed. Second, we tested the property of structure model by AMOS. We did path analysis using AMOS16.0 to test structure that is composed of e-Biz competencies and e-Biz integration. Last, we tested moderating effects of measure factors. We analyzed 163 domestic companies to find out many significant suggestive points. First, relationship improvement capacity, e-business knowledge sharing capacity with business partners, and process innovation capacity are adopted as determinants of differentiation and competitive edges against competing firms. Second, e-business knowledge sharing capacity, and process innovation capacity are analyzed as the determinants of e-business integration in the firm which demand fluctuation in the market is high. On the other hand, among the determinants that require capturing ideas on new products, and strengthening the technological power, process innovation capacity are adopted as the determinants. These results provide us the foundation that the determinants that we have analyzed can impact the supply chain integration strategies which take into account the competitive environments.

Keywords

Acknowledgement

Supported by : Inha University

References

  1. Anderson, J.C. and Narus J.A., "A Model of Distributor Firm and Manufacturing Firm Working Partnerships," Journal of Marketing, Vol. 54, 1990, pp. 42-58.
  2. Andraski, J.C., "Leadship in Logistic," Journal of Business Logistic, Vol 54, 1998.
  3. Bakos, J. and Treacy, M.E., "Information technology and corporate strategy: A research perspective," MIS Quarterly, 1986, pp. 107-119.
  4. Beckman, T.J., The current state of knowledge management, In the knowledge Management Handbook, Liebowitz, J.(eds), CRC Press: New York, 1999.
  5. Bensaou, M., "Interorganizational Cooperation and the Use IT: An Empirical Comparison of U.S. and Japaness Supplier Relation," Information System Research, Vol. 8, No. 2, 1997, pp. 107-124. https://doi.org/10.1287/isre.8.2.107
  6. Boynton, A.C., Zmud, R.W., and Jacobs, G.C., "The Influence of IT Management Practice on IT Use in Large Organizations," MIS Quarterly, Vol. 18, No. 3, 1994, pp. 299-318.
  7. Byrd, T.A. and Davidson, N.W., "Examining possible antecedents of IT impact on the supply chain and its effect on firm performance," Information and Management, Vol. 41, 2003, pp. 243-255. https://doi.org/10.1016/S0378-7206(03)00051-X
  8. Burgers, W.P., Hill, C.W., and Kim, W.C., "A Theory of Global Strategic Alliances: The Case of the Global Auto Industry," Strategic Management Journal, Vol. 14, No. 6, 1993, pp. 419-432. https://doi.org/10.1002/smj.4250140603
  9. Chae, P.D., Koch H., and Huy, V.V., "Exploring Knowledge Management Using Networktheoried: Question, Paradoxes and Project," Journal of computer Information Systems, 2005.
  10. Chatterjee, P., "Interfirm Alliances in Online Retailing," Journal of Business Research, Vol. 57, No. 7, 2002, pp. 714-723.
  11. Chenhall, R. and Morris, D., "The Impact of Structure, Environment and interdependence on the perceived Usefulness of management Accounting system," The Accounting Review, Vol. 6, No. 1, 1986, pp. 16-35.
  12. Chircu, A.M. and Kffman, R.J., "Limits to Value in Electronic Commerce-Related IT Investments," Journal of Management Information Systems, Vol. 17, No. 2, 2000, pp. 59-80.
  13. Davenport, T.H., Press innovation reengineering work through information technology, Harvard Business School Press, MA, 1993.
  14. Davenport, T.H. and Klahr, P., "Managing customer support knowledge," California Management Review, Vol. 40, No. 3, 1998.
  15. Davenport, T.H., Delong, S.W., and Beers, M.C., "Successful Knowledge Management Project," Sloan Management Review, 1998.
  16. Daniel, E.M. and Grimshaw, D.J., "An exploratory comparison of electronic commerce adoption in large and small enterprises," Journal of Information Technology, Vol. 17, 2002, pp. 133-147. https://doi.org/10.1080/0268396022000018409
  17. Duffy, J., "The knowledge Management technology infrastructure," Information Management Journal, Vol. 32, No. 2, 2000, pp. 62-64.
  18. Duncan, R.B., "Characteristics of Organizational Environments and Perceived Environments Uncertainty," Administrative Science Quarterly, Vol. 2, 1972, pp. 313-315.
  19. Earl, M.J., The knowledge as strategy: reflection on Skandia International and Shorko Films, In C. Ciborra, and T. Jelassi (eds), Strategic Information System: A European Perspective, New York: John Wily and Sons, 1994, pp. 53-69.
  20. Eikebrokk, T.R. and Olsen, D.H., "An empirical investigation of competency factors affecting e-business success in European SMEs," Information and Management, Vol. 44, 2007, pp. 364-383. https://doi.org/10.1016/j.im.2007.02.004
  21. Ellram, L.M. and Hendrick, T.E., "Partnering Characteristics: A Dyadic Perspective," Journal of Business Logistics, Vol. 16, No. 1, 1995.
  22. Fawcett, S.E. and Magnan, G.M., "Achieving World Class Supply Chain Alignment: Benefits, Barriers, and Bridges," Center for advanced Purchasing Studies, 2001.
  23. Feeny, D.F. and Willcocks, L.P., "Re-designing the IS function around core capa bilities," Long range planning, Vol. 31, No. 3, 1998a, pp. 354-367. https://doi.org/10.1016/S0024-6301(98)80003-4
  24. Feeny, D.F. and Willcocks, L.P., "Core IS capabilities for exploiting information technology," Sloan Management Review, Vol. 39, No. 3, 1998b.
  25. Fornell, C. and Larcker, D.F., "Evaluating Structural Equation Models with Unobservable Variables and Measurement Error," Journal of Marketing Research, Vol. XV, 1981, pp. 39-50.
  26. Frohlich, M.T. and Westbrook, R., "Demand Chain Management in Manufacturing and services: Web-Based integration, Drivers and performance," Journal operations management, Vol. 20, No. 6, 2002, pp. 729-745. https://doi.org/10.1016/S0272-6963(02)00037-2
  27. Gosain, S., Malhotra, A. and EL Sawy, O.A., "Coordinating for Flexbility in e-business supply," Journal of Management Information System, Vol. 21, No. 3, 2005, pp. 7-45.
  28. Grandon, E.E. and Pearson, J.M., "Electronic commerce adoption: an empirical study of small and medium US business," Information and Management, Vol. 42, 2004, pp. 197-216. https://doi.org/10.1016/j.im.2003.12.010
  29. Grant, R.M., "The Resource-Based Theory of Competitive Advantage: Implications for Strategy Formulation," California Management Review, 1991.
  30. Hackbarth, G. and Kettinger, W.J., "Building an E-Business Strategy," Information Systems Management, Vol. 17, No. 3, 2000, p. 78.
  31. Henderson, J.C., "Plugging into Strategic Partnerships: The Critical IS Connection," Sloan Management Review, Vol. 30, No.3, 1990, pp. 7-18.
  32. Hammer, M., "Reengineering work: don't automate, obliterate," Harvard Business review, 1990.
  33. Hammer, M. and Champy, J., Reengineering the corporation, New York : Harper Collins, 1993.
  34. Hair, J.F., Anderson, R.E., Tatham, R.L., and Black, W.C., Multivariate Data Analysis, Fifth-Edition, Prentice Hall, 1998.
  35. Hart, S.L., "A Natural-Resource-Based View of The Firm," Academy at Management Review, Vol. 20, No. 4, 1995, pp. 986-1014.
  36. Heijden H.V.D., "Measuring IT core capabilities for electronic commerce," Journal of Information Technology, Vol. 16, No. 1, 2001, pp. 3-22. https://doi.org/10.1080/02683960010028438
  37. Holland, C.P., "Cooperative supply chain management: the impact of interorganizational information systems," Journal of Strategic Information Systems, Vol. 4, No. 2, 1995, pp. 117-133. https://doi.org/10.1016/0963-8687(95)80020-Q
  38. Holsapple, C.W. and Singh, M., "Toward a unified view of electronic commerce, electronic business, and collaborative commerce: A knowledge management approach," Knowledge and Process Management, Vol. 7, No. 3, 2000, pp. 151-164. https://doi.org/10.1002/1099-1441(200007/09)7:3<151::AID-KPM83>3.0.CO;2-U
  39. Huang, L., "Building up a B2B e-commerce strategic alliance model under an uncertain unviroment for taiwan's travel agencies," Tourism management, Vol. 27, No. 6, 2006, pp. 1308-1320. https://doi.org/10.1016/j.tourman.2005.06.005
  40. Hung, R. and Hung, Y.-Y., "Business Process Management as Competitive Advantage: a Review and Empirical Study," Total Quality Management, Vol. 17, No. 1, 2006, pp. 21-40. https://doi.org/10.1080/14783360500249836
  41. ITGI, IT Governance Global Status Report, 2008.
  42. Johnston, H.R. and Vitale, M.R., "Creation advantage with inter-organizational information system," MIS Quarterly, Vol. 12, No. 2, 1998.
  43. Kang, S.C., Nam, S.H., Park, K.I., Song, C.S., Jun, S.K., and Kim, I.J., "A Study on the Antecedents of the Internet for Strategic Allience of Small and Medium Sized Organization," Small Business Research, Vol. 22, No. 1, 2000, pp. 93-100.
  44. Karimi, J., Somers, T.M., and Gupta, Y.P., "Impact of Information Technology Management Practices on Customer Service," Jaumaj of Management lafamiaiiaii Systems, Vol. 17, No. 4, 2001, pp. 125-158.
  45. Kearns, G.S. and Leader, A.L., "The impact of industry contextual factors on IT focus and the use of IT for competitive," Information Management, Vol. 41, 2004, pp. 899-919. https://doi.org/10.1016/j.im.2003.08.018
  46. Keoy, K.H. Alan, K.H., and Koh, S.C.L., "Evaluating the e-business capability model: empirical evidence from the UK technology-based companies," Int. J. Logistics, 2007.
  47. Kettinger, W.J., Teng, J.T.C., and Guha, S., "Business Process Chang: A Study of Methodologies, Techniques, and Tools," Mis Quarterly, Vol. 21, No. 1, 1997.
  48. Kim, C.-S., Kim, Y.-T., "A study on B2B integration strategy Based on the performance-demand chain Management in Manufacturing and services" Industry Economic Research, Vol. 17, No. 6, 2004, pp. 2361-2381.
  49. Kim, C.-S. and Seo, C.-S., "The Mediation Effect of Collaboration on supply Chain performance: Mobile networks Industry in Korea," APJIS, Vol. 16, No. 3, 2006.
  50. Kim, K.K., Lee, C.H., Park, S.K., and Shin, S.J., "The impact of sharing and Relative absorptive capacity on the Supply chain Performance-Focusing downstream Supply Chain," Korea Business Research, Vol. 34, No. 6, 2005, pp. 1869-1894.
  51. Koh, S.C.L. and Maguire, S., "Identifying the adoption of e-business and Knowledge Management within SEMs," Journal of Small Business and Enterprise Development, Vol. 11, No. 3, 2004, pp. 338-348. https://doi.org/10.1108/14626000410551591
  52. Kraemer, K.L., King, J.L., Dunkle, D.E., and Lane, J.P., "Managing Infomiation Systems: Change and Control in Organizational Computing," San Francisco: Jossey-Bass, 1989.
  53. Lambert, D.M., Emmelhainz, M.A., and Gardner, J.T., "Building Successful Logistics Partnership," Journal of Business Logistics, Vol. 20, No. 1, 1999, pp. 165-181.
  54. Lee, J.-N. and Kim, Y.-G., "Effect of Partnership Quality on IS Outsourcing Success: Conceptual Framework and Empirical Validation," Journal of Management Information Systems, Vol. 15, No. 4, 1999, pp. 29-61.
  55. Lee, C.-P., Lee, G.-G., and Lin, H.-F., "The role of organizational capabilities in successful e-business implementation," Business Process Management Journal, Vol. 13, No. 5, 2007, pp. 677-693. https://doi.org/10.1108/14637150710823156
  56. Lee, D.-M., Ahn, H.-S., and Kim, H.-J., "A Comparative Analysis on the e-Business Adoption Factors and Performance in Large and Small Companies," Information Systems Research, Vol. 17, No. 4, 2008.
  57. Lee, S. and Kim, K., "A Study on the Impact of IT and SCM Process Management Capability on e-SCM Performance," APJIS, Vol. 17, No. 3, 2007.
  58. Lin, H.-F., "Empirically testing innovation characteristics and organizational learning capabilities in e-business implementation success," Internet Research, Vol. 18, No. 1, 2008, pp. 60-78. https://doi.org/10.1108/10662240810849595
  59. Mendelson, H. and Pillai, R., "Clockspeed and Information Response: Evidence from the Information Technology Sector," Information System Journal, Vol. 9, No. 10, 1998, pp. 415-433.
  60. Mentzer, J.T., DeWitt, W., Keebler, J.S., Min, S., Nix, N.W., Smith, C.D., and Zacharia, A.G., "Defining Supply Chain Management," Journal of Business Logistic, Vol. 22, No. 2, 2001.
  61. Mirchandani, A.A. and Motwani, J., "Understanding small business electronic commerce adoption: an empirical analysis," Journal of Computer Information Systems, 2001, pp. 70-73.
  62. Moberg, C.R., Culter, B.D., Gross, A., and Speh, T.W., "Identifying Antecedents of Information Exchange within Supply Chains," International Journal of Physical Distribution and Logistics Management, Vol. 32, No. 9, 2002, pp. 755-770. https://doi.org/10.1108/09600030210452431
  63. Moon, T.-S. and Kang, S.-B., "An Empirical Study on the influence of Environmental, Organization, IS Characteristics on the Organizational Balanced Performance of SCM Systems," Information Systems Research, Vol. 17, No. 2, 2008, pp. 1-26. https://doi.org/10.5859/KAIS.2008.17.2.001
  64. Morgan, R.M. and Hunt, S.D., "The Commitment-Trust Theory of Relationship Marketing," Journal of Marketing, Vol. 58, 1999, pp. 20-38.
  65. Muston-Ollila, E. and Lyytinen, K., "Why organizations adopt information system process innovations: a longitudinal study using Diffusion of Innovation theory," Information System Journal, Vol. 13, No. 3, 2003, pp. 275-297. https://doi.org/10.1046/j.1365-2575.2003.00141.x
  66. Palmer, J.W. and Markus, M.L., "The performance impacts of quick response and strategic alignment in specialty retailing," Information systems research, Vol. 11, No. 3, 2000, pp. 241-259. https://doi.org/10.1287/isre.11.3.241.12203
  67. Porter, M.E., Competitive Strategic: Techniques for analyzing industries and Companies, Free Press; New York, 1980.
  68. Porter, M.E., "What is Strategy?," Harvard Business Review, Vol. 74, No. 6, 1996.
  69. Porter, M.E., "Strategic and Internet?," Harvard Business Review, Vol. 79, No. 2, 2001.
  70. Power, D.J., Sohal, A.S. and Rahman, S.-U., "Critical success factors in agile supply chain management An empirical study," International Journal of Physical Distribution and Logistics Management, Vol. 31, No. 4, 2001, pp. 247-265. https://doi.org/10.1108/09600030110394923
  71. Prahalad, C.K. and Hamel, G., "The Core Competence of the Corporation," Harvard Business Review, Vol. 68, No. 3, 1990.
  72. Rao, M., "Knowledge Management tools and Techniques," Elsevier Butterworth Heinemann, 2004.
  73. Roa, S.S., Metts, G. and Monge, C.A., "Electronic commerce development in small and medium sized enterprises," Business Process Management Journal, Vol. 9, No. 1, 2003, pp. 11-32. https://doi.org/10.1108/14637150310461378
  74. Rockart, J.F. and Morton, M.S.S., "Implication of change in information technology for corporate strategy," Interfaces, Vol. 14, No. 1, 1984, pp. 84-95. https://doi.org/10.1287/inte.14.1.84
  75. Rogers, E.M., Diffusion of innovation, Free Press, 1983.
  76. Salazar, A., Hackney, R., and Howells, J., "The Strategic Impact of Internet Technology in Biotechnology and Pharmaceutical Firms: Insights from a Knowledge Management Perspective," Information Technology and Management, Vol. 4, 2003, pp. 289-301. https://doi.org/10.1023/A:1022910614411
  77. Seo, C.-S. and Kim, C.-S., "Analysis of Impacts Strategic Alliance's Type of Online Company on The Satisfaction of Alliance," Corporation Management Review, Vol. 16, No. 2, 2009, pp. 131-148.
  78. Sher, J.P. and Lee C. V., "Information Technology as a facilitator for enhancing dynamic capabilities through knowledge management," Information and Management, Vol. 41, 2004, pp. 993-945.
  79. Shunk, D., Supply Network Optimization: A Seminar for Faculy and Staff National University of Lreland, Galway, 2003.
  80. Spremic, M. and Hlupic, V., "Development of E-commerce in Croatia: A Survey," Information Technology for Development, Vol. 13, No. 4, 2007, pp. 391-409. https://doi.org/10.1002/itdj.20068
  81. Subramani, M., "How Do Suppliers Benefit from Information Technology Use In Supply Chain Relationship," MIS Quarterly, Vol. 28, No. 1, 2004, pp. 45-73.
  82. Stevens, G.C., "Successful Supply Chain," International journal of Distribution and Material Management, Vol. 19, No. 8, 1989, pp. 3-8.
  83. Swanson, E.B., "Information System Innovation Among Organization," Management Science, Vol. 40, No. 9, 1994, p. 1069. https://doi.org/10.1287/mnsc.40.9.1069
  84. Team, I.R.P., IMTR, "Roadmap for technologies for Enterprise Integration," (IMTI, Inc.: Oak Ridge, TN), 1999.
  85. Teece, D.J., Pisano, G., and Shuen, A., "Dynamic Capabilities And Strategic Mnagement," Strategic Management Journal, Vol. 18, No. 7, 1997, pp. 509-533. https://doi.org/10.1002/(SICI)1097-0266(199708)18:7<509::AID-SMJ882>3.0.CO;2-Z
  86. Teo, T.S.H., Tan, M., and Buk, W.K., "A Contingency Model of Internet Adoption in Singapore," International Journal of Electronic Commerce, Vol. 2, No. 2, 1998, pp. 95-118.
  87. Timmer, P., "Business Models for Electronic Markets," European Commission, Directorate-General III, Vol. 8, No. 2, 1998.
  88. Wade, M.R. and Nevo, S., "Development and Validation of a Perceptual Instrument to Measure E-Commerce Performance," International Journal of Electronic Commerce, Vol. 10, No. 2, 2006.
  89. Wall, B.H.J. and Browne, J., "A review of eBusiness and Digital business-application, models and trends," Production Planning and Control, Vol. 18, No. 3, 2007, pp. 239-260. https://doi.org/10.1080/09537280601127245
  90. Walker, G. and Weber, D., "A Transaction Cost Approach to Makr-or-Buy Decision," Academy of management Review, Vol. 14, No. 3, 1984, pp. 423-444.
  91. Wang, S. and Cheung, W., "Sophia Wang and Waiman Cheung," International Journal of Electronic Commerce, Vol. 8, No. 3, 2004, pp. 43-63.
  92. Warkentin, M., Sugumaran, V. and Bapna, R., "e-business networks for inter-organizational collaborative e-business," Logistics Information Management, Vol. 14, No. 1/2, 2001, pp. 149-162. https://doi.org/10.1108/09576050110363040
  93. Weill, P. and Ross, J.W., "IT Governance: Now top performers manage It decision rights for superior result," Harvard business school press, 2004.
  94. Zaman, M. and Movondo, F., "Measuring Strategic Alliance success: A Conceptual Framework," Unpublished manuscript, Monash University, Australia, 2001.
  95. Zhu, K. and Kraemer, K.L., "e-Commerce Metrics for Net-Enhanced Organizations: Assessing the Value of e-Commerce to Firm Performance in the Manufacturing Sector," Information Systems Research, Vol. 13, No. 3, 2002, pp. 275-295. https://doi.org/10.1287/isre.13.3.275.82
  96. Zhu, K. and Kraemer, K.L., "The Complementarity of Information Technology Infrastructure and E-Commerce Capability: A Resource-Based Assessment of Their Business Value," Journal of Management Information Systems, Vol. 21, No. 1, 2004.