A value chain perspective of internet practices, e‐readiness and organizational performance

Abstract

Purpose -The internet has become a ubiquitous technology for business and it possesses the potential to make the concept of value chain into a more attainable reality. The purpose of this paper is to conjecture that the way the internet is utilized and the extent to which the internet impacts business performance vary from country to country. The paper aims to compare two countries regarding the pattern of internet utilization, the impact of the internet on organizational performance, and the readiness for the internet from the value chain perspective. Design/methodology/approach -A survey study was conducted with CIOs and IS directors in the USA and South Korea. A research instrument was developed by adopting and revising two existing instruments on IT value chain and on business internet practices. Findings -The findings suggest that the two countries are more similar in the way they utilize the internet than anticipated despite discernable differences observed in some areas of internet utilization.The study also provides an empirical evidence for the connection between the organization's readiness for the internet and the impact of the internet on organizational performance. Research limitations/implications -Varying sampling and data collection processes between the two countries may have introduced unintended bias to the study. Practical implications -The findings of the study provide empirical evidence that the internet has become a truly global business tool that makes the concept of value chain an achievable reality. Originality/value -This comparative study makes a unique contribution for both academicians and practitioners to gain a better understanding how the internet is adopted and utilized in different countries and to chart a course to capitalize on the technology from a value chain perspective.

Internet Technologies, ECRM Capabilities, and Performance Benefits for SMEs: An Exploratory Study

“…Much research, instead, primarily focuses on the CRM technology solutions pursued by large organizations, which tend to involve complex software applications and information systems [85,145]. Such advanced CRM applications, however, are not likely to be relevant to the unique needs of SMEs [72,97]. This is so for several reasons.…”

“…Prior research, however, has shown that SMEs lag behind larger organizations in their adoption of CRM software applications due to financial, managerial, and strategic concerns [72,84,91,140]. In fact, research has shown that the majority of SMEs do not use dedicated CRM applications to support their customer relationships [32,73].…”

The influence of information communications technology (ICT) on cash management and financial department performance: An explanatory model

“…Despite signifi cant technological advances and increasing organizational investment in these technologies, the problem of underutilized systems plagues businesses (Venkatesh, 2000). Today, management's embrace of new technology is a crucial indicator of how successfully ICT will be diffused throughout an organization to improve business performance (Koh, Nam, Prybutok, & Lee, 2007). The Primary contributions of ICT to performance can be measured at the operational level within a fi rm (Barua et al, 1995).…”