Integrating the Internet and Marketing Operations

Abstract

Adopting the Internet for advanced marketing operations opens up challenging opportunities for fi rms of all sizes. However, such adoption might destroy investments in present market channels and thus has the characteristics of radical innovation. In this article, we draw on the literature on innovation to investigate what differentiates adopters of advanced Internet-based marketing operations from non-adopters in fi rms of different sizes. The conceptual model for this study is centred on the set of internal and external factors -size, willingness to cannibalize, entrepreneurial drivers, management support, and market pressure. Our analysis is built on survey data from 379 Swedish manufacturing fi rms. The results of analysis show that composition of factors on which fi rms base their decision to adopt advanced Internet-based marketing operations varies signifi cantly with fi rm size. A number of implications for further research as well as for managers and educators are discussed.

The Adoption of Web-Based Marketing in the Travel and Tourism Industry: An Empirical Investigation in Egypt

“…Areas researched include the opportunities created by this new medium for small firms such as international market access, increased visibility and improved domestic market performance (Lefebvre et al, 2005;Coviello and McAuley, 1999;Keogh et al, 1998) as well as the barriers such as the lack of financial and non-financial resources, lack of the appropriate skills, under investment in staff training and poor knowledge of the Internet start up process (Lefebvre et al, 2005;Fillis and Wagner, 2007 ). To a lesser extent there has been a focus on the factors that affect the adoption of technological innovations including the Internet by SMEs (Bengtsson et al 2007;Bharati and Chaudhury, 2006;Lynskey, 2004).…”

“…These studies explain that a more basic use of the web is adopted before more advanced applications are developed. There is a significant difference between basic and advanced use of the web and this difference impacts the adoption process (Bengtsson et al, 2007). The following paragraphs provide a discussion of these studies that have considered the innovation adoption process as a series of different levels.…”

“…In their empirical study on the adoption of advanced Internet based marketing operations by Swedish firms, Bengtsson et al (2007) explain that basic use of the Internet includes online presentation of the firm, its products and services and simple information exchange via email. On the other hand advanced use of the Internet includes two-way interaction and data processing, online ordering and payment, gathering feedback from customers and integrating the homepage into the firm's internal functions.…”

“…Table 3.4 provides an illustration of the most commonly researched organizational factors. Malhotra and Singh, 2007;Hong and Zhu, 2006;Bayo-Moriones and Lera-Lopez, 2007;Bruque and Moyano, 2007;Tan et al, 2007;Bengtsson et al , 2007;Fabiani et al, 2005;Harrison and Waite, 2005;Salavou et al, 2004;Premkumar &Roberts,1999;Scupola,2003;Drury& Farhoomand, 1999;Yao et. al, 2002Yao et.…”

“…In small size businesses usually the owner or manager makes the innovation adoption decision and thus his/her characteristics impact his/her receptiveness to change. Table 3.5 illustrates commonly researched individual factors from both organizational (Thong, 1999;Sultan and Chan, 2000) and consumer adoption literature (Lockett & Littler, 1997;Kimberly & Evanisko, 1981;Brancheau & Wetherbe, 1990) (Rogers & Shoemaker, 1971;Kimberly &Evanisko, 1981), some researchers found a non significant relationship between these two variables (Lockett & Littler, 1997 Bengtsson et al , 2007;Doherty et al, 2003;Beatty et al, 2001;Bharati and Chaudhury, 2006;Premkumar & Roberts, 1999;Corbitt, 2000;Sultan &Chan, 2000;Cragg &King, 1993;Grover & Goslar, 1993. Top management support is important for creating a supportive climate and providing the required resources for the adoption of new technology (Premkumar & Roberts, 1999 Thong, 1999;Yu, 2006;Teo and Ranganathan, 2004. These studies provided valuable insights into the importance of studying individual characteristics when the adopter unit is an organization. This is because the adoption decision is made by individuals within organizations whose characteristics do affect the adoption decision.…”