e-Commerce Metrics for Net-Enhanced Organizations: Assessing the Value of e-Commerce to Firm Performance in the Manufacturing Sector
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In this study, we developed a set of constructs to measure e-commerce capability in Internet-enhanced organizations. The e-commerce capability metrics consist of four dimensions: information, transaction, customization, and supplier connection. These measures were empirically validated for reliability, content, and construct validity. Then we examined the nomological validity of these e-commerce metrics in terms of their relationships to firm performance, with data from 260 manufacturing companies divided into high IT-intensity and low IT-intensity sectors. Grounded in the dynamic capabilities perspective and the resource-based theory of the firm, a series of hypotheses were developed. After controlling for variations of industry effects and firm size, our empirical analysis found a significant relationship between e-commerce capability and some measures of firm performance (e.g., inventory turnover), indicating that the proposed metrics have demonstrated value for capturing e-commerce effects. However, our analysis showed that e-commerce tends to be associated with the increased cost of goods sold for traditional manufacturing companies, but there is an opposite relationship for technology companies. This result seems to highlight the role of resource complementarity for the business value of e-commerce—traditional companies need enhanced alignment between e-commerce capability and their existing IT infrastructure to reap the benefits of e-commerce.
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Enterprises that possess strong and sophisticated technology and financial competences show more adoption likelihoods.
“Scholars propose that enterprises that possess strong and sophisticated technology and financial competences show more adoption likelihoods (Zhu & Kraemer, 2002;Zhu et al., 2004).”
From Using T-O-E theoretical framework to study the adoption of ERP solution (2016) · cites this paper as Zhu & Kraemer, 2002
Section 3.5 (Descriptive Statistics; page not provided) describes firms with more intensive IT infrastructure as leaders in the sophistication of e-commerce adoption. That supports the technological-competence portion, but the paper does not establish that financial competence increases the likelihood of adoption; its analysis focuses on e-commerce capability and firm performance. (LLM, conf=0.84)
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References 62 · Cited by 779
Research works printed but not linked: 11
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- Authors
- Zhu, K., & Kraemer, K. L.
- Affiliations
- University of California, Irvine (US)
- ORCID
- Zhu, Kevin
- Venue
- Information Systems Research
- Published
- 2002-09
- Volume
- 13
- Issue
- 3
- Pages
- 275-295
- ISSN
- 1047-7047 (ISSN-L)
- 1526-5536
- OpenAlex
- W2139545293
- Cited by
- 779
- References
- 62
- Citations by year
- 2026: 7 · 2025: 10 · 2024: 12 · 2023: 23 · 2022: 23 · 2021: 24 · 2020: 19 · 2019: 19 · 2018: 22 · 2017: 25 · 2016: 27 · 2015: 55 · 2014: 46 · 2013: 65 · 2012: 48
- FWCI
- 44.78
- Type
- journal article
- Language
- en
- Open access
- green
- escholarship.org
- Licence
- cc-by
- Locations
- Information Systems Research (publishedVersion)
- eScholarship (California Digital Library) (submittedVersion, cc-by)
- Funders
- National Science Foundation
- Seagate Technology
- Directorate for Computer and Information Science and Engineering
- University of California, Irvine
- Division of Information and Intelligent Systems
- Topics
- Social Sciences › Business, Management and Accounting › Management of Technology and Innovation › Digital Innovation in Industries
- Social Sciences › Business, Management and Accounting › Business and International Management › E-commerce and Technology Innovations
- Social Sciences › Business, Management and Accounting › Management Information Systems › Information Technology Governance and Strategy
- Keywords
- firm performance, manufacturing companies, dynamic capabilities, resource-based view, information capability, inventory turnover, cost of goods sold, IT intensity, resource complementarity
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