Abstract
The cutting edge for business today is electronic commerce. The main vehicle of electronic commerce unequivocally is the Internet and the World Wide Web. With the rapid advancement in the Internet software and hardware and the infrastructure, the electronic commerce is also becoming more and more popular. Many large corporations, small and medium companies and individuals are investing more and more in the Internet business. The main purpose of this paper is to study the effect of e-commerce applications on the operational performance of small and medium enterprises. There are many different types of e-commerce usages that may influence operational performances; in this research we group them according to five different categories: electronic advertising, payment system, marketing, customer support service, order and delivery. For analyzing the data derived from questionnaire, Goodness of Fit Tests and Structural Equation Modeling/Path Analysis were used and the software’s which has been used for analyzing the data were LISREL 8.54 and SPSS 18. Survey is considered to be the most appropriate and suitable for this study. According to statistical analysis in this research the results indicates that the electronic commerce applications has been influential on the operational performance in the Indian SMEs.
Keywords
- Electronic Commerce Search this journal for Electronic Commerce (opens in a new tab)
- Small and Medium Enterprise Search this journal for Small and Medium Enterprise (opens in a new tab)
- Operational Performance Search this journal for Operational Performance (opens in a new tab)
- Organizational Performance Search this journal for Organizational Performance (opens in a new tab)
References
- Aba-bulgu, M., & Islam, S. N. (2007). Corporate crisis and risk management: modeling, strategies and SME application. International business and management. Elsevier, London, UK.
- Ainin, S., & Jaffar, N. (2003). E-Commerce Stimuli and Practices in Malaysia. 7th Pacific Asia Conference on Information Systems, 10-13 July 2003, Adelaide, South Australia.
- Ainin, S. (2000). Status of E-Commerce Application in Malaysia, Information Technology for Development Journal, 9(3/4), 153-161.
- Allen, E., & Fjermestad, J. (2001). E-commerce Marketing Strategies: an Integrated Framework and Case Analysis. Logistics Information Management. 14(½), 14-23.
- Anderson, J. C. & Gerbing, D. W. (1992). Assumptions of the two-step approach to latent variable modeling. Sociological Methods and Research , 20(3), 321-33.
- Afshar J. A., Bairagi, K. P., & Khaksar, S. M. S. (2010). The Application of electronic commerce among small and medium enterprises: from business processes view , International Journal of Business and Social Science, 2(5), 142-148.
- Afshar J. A., & Nawaser, K. (2010). Mobile commerce: the force of electronic commerce future. International seminar on ‘innovations in strategic management for organizational excellence, Sinhgad institute of management. Pune, India.
- Arie S., Dadong, W. & Caroline, B. (1995). Financial EDI over the Internet: a Case Study. Working Paper CITMWP-1006. Fisher Center for Information Technology & Management, University of California in Berkeley.
- Bagozzi, R. P., & Yi, Y. (1988). On the evaluation of structural equation model, Journal of Academy of Marketing Science , 16(1), 74-94.
- Barker, N. (1994). The Internet as a reach generator for small business. Unpublished master’s thesis, University of Durham.
- Berrill, A., Goode, S. & Hart, D. (2004). Managerial expectations of internet commerce adoption after the “tech wreck” of 2000-an Australian perspective, Journal of Global Information Technology Management , 17(3), 45-63.
- Brealey, R.A., Myers, S.C., & Marcus, A.J. (2001). Fundamentals of Corporate Finance (3rd edn), New York: McGraw-Hill.
- Block, M., Yves, P., & Arie S. (1996). On the Road of Electronic Commerce- a Business Value Framework, Gaining Competitive Advantage and Some Research Issues, Working Paper: Fisher Center for Information Technology and Management, University of California, Berkeley.
- Burns, P. (2001). Entrepreneurship and Small Business. Palgrave, Hampshire, UK.
- Carton, R. B. & Hofer, C. W. (2006). Measuring Organizational Performance: Metrics for Entrepreneurship and Strategic Management Research, Edward Elgar Publishing Limited.
- Combs, J. G., T. Crook, R., and Christopher, L.S. (2005). The dimensionality of organizational performance and its implications for strategic management research, in Professor David Ketchen and Professor Don Bergh (ed.) Research Methodology in Strategy and Management (Research Methodology in Strategy and Management), Emerald Group Publishing Limited, 2, 259-286.
- Cockburn, C., & Wilson, T. D. (1995). Business use of the World-Wide Web. from Web: http://informationr.net/ir/1-2/vaperó.html.
- Cronin, B., Overfelt, K., Fouchereaux, K., Manzvanzvike, T., Cha, M., & Sona, E. (1994). The Internet and competitive intelligence: A survey of current practice. International Journal of Information Management , 14(3), 204-222.
- Duffy, D. L. (2005). Affiliate marketing and its impact on e-commerce, Journal of Consumer Marketing , 22(3), 161-163.
- Dyer, L., & Reeves, T. (1995). Human resource strategies and firm performance: What do we know and where do we need to go? Paper presented at the 10th World Congress of the International Industrial Relations Association, Washington, DC.
- Eid, M. I. (2011). Determinants of E-Commerce Customer Satisfaction, Trust, and Loyalty in Saudi Arabia. Journal of Electronic Commerce Research , 12(1), 78-93.
- Fahri, K. & Omar, K. (2001). Electronic Commerce Use in Small and Medium-Sized Enterprises in Towards the E-Society E-Commerce, E-business, E-Government, edited by Schmid, B, Stanoevska, K and Tschammer, V, Kluwer Publishing, Zurich.
- Fatimah, M. A., Kusairi, M. N., & Mohd, F. A. (2000). E-commerce Adoption in Malaysia: Problems and Barriers from the Firms’ Perspective, International Conference on Electronic Commerce Proceedings, 21-23 November, Kuala Lumpur.
- Fuller, T., & Jenkins, A. (1995). Public intervention in entrepreneurial innovation and opportunism: short cuts or detours to the information superhighway? In proceedings of the babson entrepreneurship conference, London, UK.
- Gupta, R. (2006). Scope of Cottage and Small Scale Industry in West Bengal in the Early 2000, IBS Research Centres, Kolkata.
- Ghatak, S. (2010). Micro, Small and Medium Enterprises (MSMEs) in India: An Appraisal, available from: http://zunia.org.
- Johnson, C. (2003). U. S E-commerce: the year in review, Cambridge, MA: Forrester Research.
- Hair, J., Black, W. C., Babin, B. J., Anderson, R. E. & Tatham, R. (2006). Multivariate Data Analysis, Pearson Education, New York.
- Helfert, E. A. (1994). Techniques of Financial Analysis (8th edn), Boston, MA: Irwin.
- Higgins, R.C. (1995). Analysis for Financial Management (4th edn), Boston, MA: Irwin.
- Hua, F. & Guan, S. U. (2000). Agents and Payment Systems in E-commerce. In Rahman, S.M. and Bignall, R.J. (Eds.), Internet Commerce and Software Agents: Cases, Technologies and Opportunities, IDEA Group Publishing, 317-330.
- Joreskog, K. G. & Sorbom, D. (1996). LISREL 8: Structural Equation Modeling, Scientific Software International Corp., Chicago, IL.
- Kalakota, R., & Robinson, M. (1999). E-Business: Roadmap for Success. Sydney, Addison Wesley.
- Kotler, P. (2000). Marketing Management. 10th ed., New Jersey, Prentice-Hall.
- Kraemer, K., Gibbs, J. & Dedrick, J. (2002). Impacts of globalization on e-commerce adoption and firm performance: A cross-country investigation, Globalization and E-Commerce. Irvine, centre for research on information technology and organizations.
- Lawal, A. S. (2010). Electronic commerce in Nigeria banking industry (a case study of guaranty trust bank Nigeria plc.) department of business administration, faculty of business and social science, university of Ilorin, Ilorin.
- Marg, K. S. K. (2001). Facilitating innovation in Indian small and medium enterprises–The role of clusters, Current science, 80(3).
- Mazandarani, M. (2010). Comparison of the Type of the Web Base Advertising on Ecommerce Improvement. Journal of American Science, 6(3), 150-156.
- Molla, A., & Licker, P. S. (2001). E-Commerce Systems Success: An Attempt To Extend And Respecify The Delone And Maclean Model Of Is Success. Journal of Electronic Commerce Research , 2(4), 131-141.
- MSME. (2009-10). Ministry of Micro, Small and Medium Enterprises, Government of India, Annual Report 2009-10, Chapter I, P1, available from: http://msme.gov.in/MSME_AR_ENG_2009_10.pdf.
- Nickels, D.W., Kwun O., and Omar, A. (2007). The effect of organizational culture on e-commerce adoption. From: http://www.swdsi.org/swdsi08/paper/SWDSI%20Proceedings%20Paper%20S152.pdf.
- Oakes, C. (2002). Successful E-commerce means going back to the basics. International Herald Tribune, 24(12).
- Poon, S., & Huang, X., (2004).E-Commerce and SMEs: A Reflection and the Way Ahead. Idea Group Inc. Charles Sturt University, Australia.
- Poon, S., & Swatman, P. M. C. (1995). The Internet for small businesses: An enabling infrastructure for competitiveness. Paper presented at the Fifth Internet Society Conference, Hawaii, USA.
- Penman, S.H. (2001), Financial Statement Analysis and Security Valuation, New York: McGraw-Hill.
- Pierre J.R., Timothy M.D., George S.Y., & Gerry J. (2009). Measuring Organizational Performance: Towards Methodological Best Practice. Journal of Management. 35(3), 718-804.
- Ravi, S., (2009), Entrepreneurship Development in the Micro Small and Medium Enterprise Sector in India, Indian School of Business. From: http://www.isb.edu/faculty/shamika /MSME%20chapter_Shamika%20Ravi.PDF.
- Raymond, L. (2001). Determinants of Web site implementation in small business. Internet Research: Electronic Network Applications and Policy , 11(5), 411-422.
- Seyal, A. H., & Rahman, M. N. A. (2003). A preliminary investigation of e-commerce adoption in small & medium Enterprises in Brunei. Journal of Global Information Technology Management, 6(2), 6 - 26.
- Schaper, M., & Volery, T. (2004). Entrepreneurship and small business: A Pacific Rim perspective. Singapore: Wiley.
- Senn, J. A. (2000). Business-to-business e-commerce. Information Systems Management, 17(2), 23-32.
- Soh, C., Quee, M., Fong, G., Chew, D. & Reid, E. (1997). The use of the Internet for business: the experience of early adopters in Singapore, Internet Research: Electronic Network Application and Policy , 7(3): 217228.
- Smith, P.R., & Chaffey, D. (2005). E-marketing Excellence: at the Heart of E-business, 2nd edn. Butterworth Heinemann Elsevier, Oxford.
- Shaker, T. I. and Basem, Y. A. (2010). Relationship Marketing and Organizational Performance Indicators. European Journal of Social Sciences, 12(4): 545-557.
- Stroehle, F. (2008). Effective E-Commerce in China Lessons from cross-cultural research. Otago Management Graduate Review , 6, 65-79.
- Tomer, A. & Pugesek, B. H. (2003). Guidelines for the implementation and publication of structural equation models. In: Pugesek, B.H., Tomer, A., von Eye, A. (Eds.), Structural Equation Modeling: Applications in Ecological and Evolutionary Biology. Cambridge University Press, Cambridge.
- Turban, E., Lee, J., King, D., & Chung, H. (2002). Electronic commerce: A managerial perspective, NJ, Prentice Hall.
- Turban, E., McLean E. & Wetherbe, J. (2000). Information Technology for Management, NY: John Wiley & Sons. Inc.
- Upkar, V. (2002). M- commerce: framework, applications and networking support, Kluwer Academic Publishers Hingham, MA , 7(1), 185-198.
- Venkatraman, N., Ramanujam, V. (1986). Measurement of Business Performance in Strategy Research: A Comparison of Approaches. The Academy of Management Review , 11(4), 801-814.
- Wang K., Wang, E. T. G., & Farn, C. K. (2009). Influence of web advertising strategies, consumer goaldirectedness, and consumer involvement on web advertising effectiveness, International Journal of Electronic Commerce , 13(4), 67-95.
- Zwass, V. (1998). Structure and Macro- Level Impacts of Electronic Commerce, CA: Saga Publication.
Downloads
No downloads have been recorded for this article yet. Figures appear here once readers begin downloading the full text.
How to Cite
Share this article
License
Copyright (c) 2011 Asghar Afshar Jahanshahi, Mohammad Ali Hajizadeh Gashti, Seyed Mohammad Sadeq Khaksar, Bairagi Kachardas Pitamber (Author)

This work is licensed under a Creative Commons Attribution 4.0 International License.
Author (s) should affirm that the material has not been published previously. It has not been submitted and it is not under consideration by any other journal. At the same time author (s) need to execute a publication permission agreement to assume the responsibility of the submitted content and any omissions and errors therein. After submission of revised paper in the light of suggestions of the reviewers, the editorial team edits and formats manuscripts to bring uniformity and standardization in published material.
This work will be licensed under Creative Commons Attribution 4.0 International (CC BY 4.0) and under condition of the license, users are free to read, copy, remix, transform, redistribute, download, print, search or link to the full texts of articles and even build upon their work as long as they credit the author for the original work. Moreover, as per journal policy author (s) hold and retain copyrights without any restrictions.
Keywords
- Electronic Commerce Search this journal for Electronic Commerce (opens in a new tab)
- Small and Medium Enterprise Search this journal for Small and Medium Enterprise (opens in a new tab)
- Operational Performance Search this journal for Operational Performance (opens in a new tab)
- Organizational Performance Search this journal for Organizational Performance (opens in a new tab)
Section
Published in
Vol. 2 No. 6 (2011)
Leadership, Capital Markets & Digital Enterprise
View issue contents
Published
Submissions
Have research to publish? Information Management and Business Review welcomes submissions.
Make a Submission