A contingency model of web-based ec use: a supply chain approach

As a result of the "dot com" downfall in the early 2000's, companies are more wary when it comes to committing resources to Electronic Commerce (EC) projects, because of changing and turbulent environments, market uncertainties (Microsoft Corporation, 2002), among other factors. Despite the challenges, the outlook for EC appears promising and companies remain hopeful that it will bring dynamic and exciting business opportunities. In fact, recent studies suggest that the volume of goods and services exchanged in EC will continue to grow into the trillions of dollars worldwide in the near future (e.g., A. T. Kearney, 2003; International Data Corporation, 2004). However, before embarking on Web-Based EC projects, companies need to assess how it can be used to seamlessly integrate processes internally and with trading partners. This becomes even more relevant today as new e-commerce technologies emerge because they have far-reaching ramifications on the way businesses are conducted (Kheng and Al-Hawamdeh, 2002), from supporting internal processes to supply chain integration (Clark and Lee, 2000; Keskinocak, Goodwin et al., 2001; Lee, 2002; Oliver, Chung et al., 2003). However, it is also recognized that these technologies also demand an increased interdependence and expanded coordination among firms along the supply chain (Clark and Lee, 2000). One of the major challenges faced by companies is how to leverage the inherent benefits of e-commerce to establish forms of interorganizational systems with their suppliers and customers in hope of improved benefits along the supply chain. In order to successfully overcome the challenges of EC and obtain the expected benefits, research must identify the factors that lead to improvements in organizational benefits in the context of Web-Based EC and furthermore determine what is the likely impact the Web-Based EC use on organizations. Through an extensive review of the extant literature, this study proposes a research model that investigates the factors that affect organizational benefits in the context of Web-Based EC usage and its impact on the firm. In doing so, this study addresses the dimensions of Web-Based EC use by developing reliable and valid instruments. Similarly, valid and reliable measures are adapted and validated from previous research to fit the context of the present study. A large scale online survey was conducted with a sample representative of different geographical areas, industries and firm sizes to achieve greater generalizability of the findings. A total of 180 valid responses were obtained and were subjected through a rigorous statistical methods (e.g. CFA, reliability analysis) to validate the constructs considered in the study. Using multiple hierarchical regression analysis, the theory-based model was tested by using the sample previously mentioned. In addition to validating the positive impact of Web-Based EC usage on the organizational benefits of the firm, this study finds statistical support of the importance of E-Infrastructure, Trading Partner Power, Strategic Flexibility and We-Based EC use on Organizational Benefits. Furthermore, the interaction effects of Web-Based EC use on Trading Partner Trust, Technology Trust Mechanisms, and Supply Chain Integration were found to be significant. In addition, this study also developed valid and reliable measures to capture the Web-Based EC use, E-Infrastructure, and Organizational Benefits. These measures should be valuable to both academicians and practitioners alike for further studying Web-Based EC use and its organizational impact. Guidelines for future research are also mentioned.