Assessing the impact of web‐based electronic commerce use on the organizational benefits of a firm

A collaborative scenario-based decision model for a disrupted dual-channel supply chain

Purpose

Distribution systems usually utilize both traditional retailing channels in conjunction with e-channels. The purpose of this paper is to investigate a dual-channel supply chain, comprising a traditional retailing channel and an e-channel under disruption. By benchmarking against the centralized decision structure, the authors intend to propose a collaboration model to achieve channel coordination as well as more reliable decisions.

Design/methodology/approach

Four different channel disruption scenarios, with customers’ reaction toward disruptions, are examined, and then, optimal pricing decisions for both centralized and decentralized decision-making structures are extracted. Next, a collaboration mechanism based on the dominancy power of channel members is developed to entice all channel members to participate in channel coordination. By benchmarking the proposed collaboration model against both the decentralized/centralized structures a win–win solution is guaranteed for all channel members. In addition, the proposed model ensures more reliable decisions than the centralized structure, as it guarantees less fluctuated income levels.

Findings

This study shows, as the disruption probability grows, the channel profit decreases while the channel-retailing price increases. Furthermore, the exact alignment of the centralized decision-making approach and the proposed collaboration model is not achievable due to the problem infeasibility. Numerical experiments and sensitivity analyses benchmark the performance of the proposed collaboration mechanism against the centralized structure for the full alignment with centralized decision-making approach.

Originality/value

This study contributes to the channel conflict literature as jointly considers pricing decisions, disruptions and coordination. Further, consumers’ reaction toward disruption is analyzed through a transshipment agreement.

Supply chain practices and organizational performance

Purpose

The purpose of this paper is to empirically test a framework which identifies the relationships between various supply chain practices (SCPs) and organizational performance (operational performance (OP), customer satisfaction, and financial performance) in the context of Indian manufacturing organizations.

Design/methodology/approach

From the literature, ten SCPs are selected which finally influences the organizational performance. In order to understand the interactions between SCPs and organizational performance, this paper grouped the ten SCPs into four constructs namely: information and communication technology, supply chain (SC) integration, operational responsiveness, and closed loop green practices. Three levels of firm performance are also examined, including OP, customer satisfaction, and financial performance. The paper-based and web-based survey yielded 292 responses from the Indian manufacturing organizations. The data collected were put through rigorous statistical analysis to test for the content, construct, and criterion-related validity, as well as reliability analyses. Further a structural equation model was developed to test the relationships between SCPs and organizational performance.

Findings

The finding suggests that a successful SCPs implementation not only improves the OP, but also enhances customer satisfaction and financial performance. In addition, higher financial performance is also attributable to better customer value resulting from the achievement of better customer satisfaction.

Research limitations/implications

SCPs are complex constructs. While this study shows the effect of broadly accepted SCPs on organizational performance, not all possible practices are covered in this study. Again the study can be further extended to sector specific so that the results can be further refined.

Practical implications

This is one of the few studies which attempts to investigate whether there is any relationship exits between SCPs and organizational performance. The finding will help decision makers in the organization to know the importance of SCPs and how SCPs influence the organizational performance. Second, this study has developed and validated a multi-dimensional construct of SCPs, which can assist decision makers of Indian organizations to evaluate the competence of their current status of SCPs in the organization.

Originality/value

As per the knowledge of the authors, this is the first kind of study which empirically investigated the relationships between SCPs and organizational performance in the context of Indian manufacturing organizations.

Operational or strategic benefits

Purpose

The purpose of this study is twofold: identifying important determinants for effective adoption of internet technologies in an organizational supply chain context and examining and classifying benefits yielded from internet adoption in supply chain.

Design/methodology/approach

A structured Web-based questionnaire was designed and administered to respondents to collect the primary data. With two reminders, this study managed to obtain 236 respondents from different industries in Malaysia. Structural equation modelling was applied to test the seven hypotheses.

Findings

Four of five factors were significant for successful implementation of internet technologies in organizations. In addition, results suggested that internet technologies contribute more to operational activities rather than strategic initiatives, which would be one of the main contributions of this study.

Research limitations/implications

This study is limited by its being based on organizational perception rather than absolute value for measuring the benefits of internet adoption. Moreover, this study applied the cross-sectional technique which may limit generalizability of the findings.

Practical implications

This study provides in-depth knowledge about internet adoption and benefits for the organization by combining both theoretical and empirical knowledge. It helps managers to understand the importance and process of internet adoption.

Originality/value

Organizations who are interested in adopting the internet in their supply chain may feel that these results will guide them in making their final decision.

Factors Influencing E-Commerce Growth

This paper presents an inter-country comparative analysis of key inhibitors and enablers affecting the diffusion of e-commerce across transition economies of Central Asia. It reveals that the combined effect of dissimilar economic, political, and technical impediments is a major underlying motive for differing e-commerce adoption patterns across these transition countries. This paper contributes to a better understanding of the issues affecting e-commerce diffusion and their implications for successful e-commerce implementation in countries undergoing the difficult process of transition to a market economy.