The Impact of E-Commerce upon Organizational Functionality: The Position of Absorptive Capacity Dissertation

The Impact of E-Commerce about Organizational Performance: The Part of Absorptive Capacity

The effect of Ecommerce on Company

Performance: The Role of Absorptive Capacity

and Integrative Capability

Qing Hu1, Jianzheng Yang2, and Lifan Yang3

1

New jersey State College or university, Ames, New jersey, USA

[email protected] edu

a couple of

Shanghai College or university for Technology and Technology, Shanghai, China and tiawan [email protected] com

3

East China School of Politics Science and Law, Shanghai in china, China [email protected] com

Summary. This research examines how e-commerce produces value pertaining to firms through the perspective of dynamic capacity theory. A theoretical style is suggested and analyzed using strength equation modeling techniques depending on survey data collected via firms which were using e-commerce in their procedures for typically 4 years and have a lot more than 25% of sales or procurement through ecommerce programs. We find that top supervision participation is actually a key contributor to the development of a business's potential and realized absorptive capacities. These two forms of absorptive capacity subsequently contribute to the business integrative functionality, theorized as a form of dynamic capability, which then impacts the firm overall performance indicators. Different contributions of the two absorptive capacities happen to be delineated, so might be the effects of best management around the absorptive sizes. Theoretical and practical efforts of these studies are talked about.

Keywords: E-Commerce, Absorptive Potential, Integration, Company Performance.

1

Introduction

Analysis literature in e-commerce have been diverse theoretically, methodology, target, and findings [23]. Studies that focus on the question of how e-commerce impacts company performance offered recommendations and prescriptions based on different theoretical and functional perspectives. For instance , Saeed ou al. [17] examined the impact of web commerce on company performance from your perspective of customer psychology and internet site features, although Zhu and Kreamer [27][28] aimed at how a business e-commerce capabilities and THAT infrastructure come together to create positive impact on firm performance. Other studies centered their efforts on method integrations with external business partners in B2B environment [13][15]. Through this study, all of us attempt to offer an integrated watch of how e-commerce capabilities effect firm functionality without distinguishing B2C and B2B procedures. We argue that in the current organization environment it can be rare that a firm M. J. Shaw, D. Zhang, and W. T. Yue (Eds. ): WEB 2011, LNBIP 108, pp. 261–273, 2012. © Springer-Verlag Bremen Heidelberg 2012

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Queen. Hu, J. Yang, and L. Yang

only is targeted on either B2C or B2B side of e-commerce. Eco friendly competitive edge is more likely to be acquired if a firm completely integrates their B2B and B2C strategies and procedures into complete e-commerce technique and operations that penetrate strategic organizing, internal and external organization processes, source chain, and customer service functions, i. electronic., the entire worth chain from the firm. Consequently , the main research questions of this study are: 1) where can firms develop their ecommerce capabilities? and 2) just how can these capacities impact the firms' functionality? To address these types of questions, we draw around the dynamic capability theory while advanced simply by Teece et al. [21] and Eisenhardt and Martin [6] and posit a firm's integrative capability is definitely the core source of its competitiveness in the global e-market. We further believe this integrative capability is definitely driven by simply top management participation in e-commerce actions and initiatives, and based on the business's potential and realized absorptive capacities. In the sections in this article, we develop this assumptive thesis and test the hypotheses with survey data collected coming from 145 businesses that have web commerce as a substantive part of their business procedures.

2

Theoretical Development

The dynamic functions theory [6][12] address the criticisms of the traditionally used resource primarily based view (RBV) [2][16][[24] in the ideal management...