• The Journal of Information Systems
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• v.26 no.4
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• pp.379-400
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• 2017

Purpose The purpose of this study is to investigate the effects of ICT on multilevel marketing organizations (MLMs) whose members are both salespeople and consumers. This study explores the effects of the latest ICT convergence on the direct selling, which is the oldest sales method, and suggests the direction for the development of network marketing. Therefore, we will propose the changes in direct sales brought by ICT and predict the future direction of network marketing in preparation for the 4th Industrial Revolution era. Design/methodology/approach Exploratory case study was the methodology selected for this paper. The case study enables the use of multiple methods for data collection and analysis. This study applies qualitative case-study methodology on Amway Korea, which is the top seller of MLM organizations, to better understand the impact of ICT. This study conducted an in-depth interview with four different levels of MLM members (e.g. membership, ruby, emerald, diamond) which are based on the qualification system of MLM organizations and observed their behaviors. Findings This study revealed that the ICT impact on network marketing organizations(MLMs) could be summarized as follows : new membership growth, easier communication with customers, increase in work efficiency, increase in organizational trust, change in educational environment, and increase in the use of social media. Based on the interview, we propose the changes of network marketing organizations in the fourth industrial revolution era and the future strategy of Amway Korea as follows: (1) retention of royal ABOs, (2) harmony with SMEs, (3) utilization of Big Data, (4) creation of IoT business model, and (5) construction of successful O2O business platform.