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Globalization allows companies worldwide to expand their operations and create jobs. The virtual, world of commerce must be supported with physical, financial and information processes that, global firms are more likely to already have in place, and which local firms cannot duplicate, easily or cheaply. In this study of 46 firms we examine the determinants of process-based information technology adoption in the Indian manufacturing sector. Internet and e-commerce in time and it is still too early to observe reciprocal effects. process of globalization has preceded the adoption of the Internet and e-commerce in time. Globalization affects global communication by enabling businesses to pursue new and unexplored opportunities across the world. develop Web strategies that successfully leverage their local physical presence (Steinfield et al., 1999; Steinfield & Whitten, 1999). In the US.. • 180 million people in the US use the internet at least once per month. industry sectors that are known to be more advanced users of e-commerce—manufacturing, distribution (wholesale and retail), and finance (banking and insurance). Globalization in short, points to the whole effort towards making the world global community as a one village. View all references thesis that upstream business activities (namely, B2B) are more global while downstream business activities (B2C) are more local or multidomestic. Table 6, shows that, controlling for the effects of e-co, had a significant positive direct effect on all three types of performance, efficiency (b, evident in Table 7, when controlling for B2B and B2C e-commerce adoption, as well as size and, industry. The theory behind globalization is that worldwide openness will promote the inherent wealth of all nations. through a large-scale study across ten countries and three industries. If this is the case, then there should be a direct relationship between, level of adoption and firm performance, in terms of increased efficiency, coordination, and sales. First, we investigated the impacts of EC diffusion on overall social, political, cultural, technological, organizational, and economic relations. Although business to consumer (B2C) global e-commerce is growing rapidly due to rising incomes and improved Internet access, the vast majority of e-commerce is business to business (B2B). Figure 2 shows that highly, global firms were significantly more likely to use the Internet for exchanging information with, customers and suppliers, integrating business processes, and after sales service and support, but, not for sales, procurement and marketing. The study follows a cross-sectional survey method approach. Design/methodology/approach David has taught computer applications, computer fundamentals, computer networking, and marketing at the college level. Both B2B and B2C adoption drove. Then we traced the diffusion of EC and the role of different actors associated with this new economical and technological innovation, viz. Only 12.07% of the respondents have conducted commercial sales via the Internet and out of them 57.1% are satisfied with the income, but only at the-pocket-money-level. Electronic Commerce and the Local Merchant: Opportunities for Synergy Between Physical and Web. 2) increased staff productivity, 3) increased sales, nventory costs, 9) improved coordination with, ble 3. Late Globalization and Evolution, Episodes and Epochs of Industries: Evidence from Danish Textile and Fashion Industry, 1945-2015, Organizational and Environmental Factors with the Mediating Role of E-Commerce and SME Performance, External diffusion of B2B e-procurement and firm financial performance: role of information transparency and supply chain coordination, Safety of Online Shopping According to Customers, A Study on Sustaining Corporate Innovation with E-Commerce in China, Drivers of ICT investments in bakery and sugar confectionery processed food sub-sector in India, Global e-commerce consumer habits and perceived opportunity for professional realization of the first-year students in economics, Trust, Risk and Alternative Website Quality in B-Buyer Acceptance of Cross-Border E-Commerce, Exploring the Impact of Globalization and Technology on Supply Chain Management: A Case of International E-Commerce Business, The moderator-mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. 2002. We created a set of indices, distinguishing B2B and B2C e-commerce adoption by, items on e-commerce sales and services and then dividing responses into 0-2 where 0 is no e-, commerce, 1 is either sales or services, and 2 is both sales and services. E-, commerce adoption will thus mediate the effects of globalization on firm performance. 1996. In this connection, we revealed seven types of prime relational changes on the effects of EC diffusion in a country context. Irvine, CA: Center for Research on Information Technology and. This paper, We review the macroeconomic and microeconomic impacts of e-business on organizations. The result of the study highlights the importance of information transparency and supply chain coordination in enhancing the firm financial performance by external diffusion of e-procurement. The fact that e-commerce, is a mediator means that globalization also has, leads to higher levels of e-commerce adoption, which in turn has positive impacts on, performance. Upstream activities such as inbound logistics and, operations are not dependent on location, and can be organized globally to achieve economies of. However, B-buyers are more important compared with C-buyers for CBEC platforms. Firms that are highly global will have a greater overall level of e-commerce, It is often assumed that e-commerce adoption is a global process, driven by a common set, of actors, primarily the MNCs who control global production networks and whose influence, transcends national boundaries. Organizations, University of California, Irvine. The, atzsky & Fleischer, 1990; Rogers, 1983). Determinants of Information Technology Adoption, Shifting Governance Structures in Global Commodity Chains, With Special Reference to the Internet, Liberalization and the Computer Industry: A Comparison of Four Developing Countries, Globalization of E-commerce: Environment and Policy of Taiwan, Globalization of Innovation and Production Networks, The application of personalized recommendation system in b2c e-commerce network platforms, Economic Implications of e-Business for Organizations, Enhancing Competitiveness of B2B and B2C E-Commerce. The noted author, Thomas Friedman, has said that today globalization is ''farther, faster, cheaper, and deeper'' than before. Following their recommendations, we compare the, relationship of the dependent variable (performan, with and without the mediating variable (e-commerce adoption). Shopping can be done in stores up to thousands of kilometers away so borders between individual countries -markets have also disappeared (Matthews et al., 2001; ... Industry supply chain Big Data Supply Chain Suppliers and Customers [41][42][43], While there has been much research on global production networks of IT hardware, quantitative research investigating what determines IT hardware production at the country level has been scant. Customers are more and more deciding to use various types of services via Internet. The Impact of Globalization on Entrepreneurs. (1999). H4. Globalization has differential effects on B2B and B2C e-commerce, however, such that highly global firms are more likely to do B2B but less likely to do B2C. courses that prepare you to earn < .01). Ecommerce is reducing the importance of time by speeding up production cycles, allowing firms to operate in close coordination and enabling consumers to conduct transactions around the clock. interrelationships between globalization, B2B, B2C, and firm performance and address H2a, H1, that firm globalization would lead to a greater level of e-commerce adoption, was, confirmed. E-Commerce Readiness: Institutional Environment. The relationship with the education and training, required to carry out these activities was specifically sought. Consumer rights vary from country to country as well, as do copyright and trademark protections for web site content. Adoption of new information technologies is expected to result in improvements in firm, performance, such as reducing transaction costs and closer coordination of economic activity, among business partners (e.g., Malone et al., 1987; Mukhopadhyay et al., 1995). Describe how technology is FKDQJLQJWKHVXSHUYLVRU¶VMRE Objective 2-3. Globalization is an elimination of barriers to trade, communication, and cultural exchange. Electronic Commerce and the. The mechanisms of how information technology, such as e-commerce, can promote corporate innovation have not yet been fully recognized. Online banking is supposed to reduce the need for customers to, visit branches or use call centers, while online retailing likewise reduces the need for in-store or, call center staff. 1993. oriented, not that they have a higher proclivity for providing those services online. Also, the ‘digitalization' is leading the global supply chain operations to a new operation platform. Objective 2-4. ICT adoption fosters, dination costs and creating new and expanded, intensive users of the Internet for business-to-consumer (B2C) e-, ency, while adoption of B2C improves sales and, er for firms to adopt specific ICTs such as the, Webster, 1995), adoption of IT innovations, of computerization (Dasgupta et al., 1999), mmerce (especially B2B) to improve coordination, es to e-commerce specifically. This article points to the results of a study of online buying habits and perceived opportunity for professional realization in e-commerce of first-year students in Economics at a smaller economic faculty in Southeast Europe, born in the late Y generation, with a minimum period of higher education in majors other than e-commerce. Firms with a greater level of e-commerce adoption will experience greater impacts, This paper is part of a study of the globalization of e-commerce in ten countries. particularly in terms of increased coordination. The three regressions in Table 5 and the four regressions in Table 6 show the, interrelationships between globalization, level of e-commerce adoption, and the three dimensions, of firm performance and address H1, H3, and H4. Our findings provide support, ed, each driving the other forward, and both being, rces continually reinforce one another (Bradley, sourcing, moving production offshore or gaining, cesses (Bradley et al., 1993). Greenspan, Alan. On the other hand, these inequalities do not preclude local firms from participating in e-. vs. There are economic challenges in e-commerce when crossing international borders. 1995. Business Value of Information. 1998. innovation, IT and e-commerce literatures (c.f., business activities such as sales, marketing, procurement, and sharing information. firm globalization was not just a proxy for size. How did you end up with something from halfway around the world? markets with economies of scale (Mann et al., 2000; Steinfield & Klein, 1999). Steinfield and his colleagues furthermore argue that local businesses can. There have been concerns about impacts on employment and working conditions. The results establish the role of information transparency in enhancing firm performance by improving supply chain coordination. Descriptive statistics revealed that the highly, global firms in the sample were heavily weighted toward foreign manufacturing companies, as, 55% of them were headquartered abroad and, global firms in the sample did an average of 45% of their sales and 40% of their procurement, internationally, compared to less than 1% each for local firms. The Commerce index, consists of items 3-6 and 10, and it has a high alpha of .83. In the past literature, e-commerce usage is considered a platform to interact with other business partners, which leads to firm performance. Public/private partnerships are being put in place to build out low-cost, high speed Internet networks, because in many of these countries in rural areas, there was no existing telecommunications structure to piggyback on. Among them, Jingdong, Taobao, Jumei, Mogu Street and other B2C network platforms quickly seize the mainstream consumer groups in their respective areas and gradually expand into industry giants in their respective fields. The contributions of the study are addressed lastly. Identify the significant changes that have occurred in the composition of the workforce. The Journal of Strategic Information Systems. Findings An important aspect is also the payment method for this type of shopping. Furthermore, since, we are investigating impacts at the firm level, we do not attempt to measure the process of, globalization directly but rather the degree to which companies are globalized, in terms of the, internationalization of their operations, revenues, and the competitive pressure they face. s with suppliers and customers (OECD, 1999; We conceptualize firm globalization as the degree to which firms. Electronic Data Interchange and. 0085852. 's' : ''}}. The ability to quickly recommend consumer goods is the main focus of various highly competitive e-commerce platforms. Thus H5 was supported, but with some qualifications: while level of adoption. We conceptualize adoption in terms of the use, commerce, and we measure 1) the overall level of adoption and 2) the type of e-commerce, adoption (B2B versus B2C). responsible for making the firm’s IT-related decisions. Further, we find that adoption of B2B e-commerce by all firms, leads to improved sales, coordination and effici. competitive position, which resulted from adoption of both B2B and B2C. 2000. As with the earlier transition, a change in the medium for recording and reporting transactions (i.e., from oral to written, from written to electronic) is bringing about a significant change in the economic and social system in which they are imbedded. Globalization has caused the world to shrink and most of us in one way or another do business with individuals across the globe. Global firms get more performance, improvements from e-commerce than local firms, as they tend to adopt B2B, which has greater, impacts across a broader range (efficiency, coordination, and commerce) than B2C, which is a, driver only of increased sales and efficiency. Business Model with Information Technology: Dell Computer Corporation. Get access risk-free for 30 days, rce, in particular (Steinfield et al., 1999; an indirect effect on performance. The goal is, to move beyond general arguments about these “megatrends” and to look at their actual, dynamics in the operations of business establishments. The corporate strategist must consider how e-business may change the nature of rivalry among the competitors. preliminary analyses of the data were conducted. Schools of Business all over the country are beefing up their eBusiness offerings to fulfill student and industry demands. has thousands of articles about every It must be noted that this study is limited in several ways. A higher score indicates, analysis confirmed a relatively high alpha of .7 and provided justification for combining these. Taken, together, these factors provide an indication of the level of company globalization. Shaw, Michael, R. Blanning, T. Strader, & A. Whinston, editors. Countries were selected to include developed, newly industrializing and developing, nations in the three major regions of the world. Both level and type of use are categories commonly used in the. Enrolling in a course lets you earn progress by passing quizzes and exams. These, direct and indirect effects of globalization should have additive functions. distinguishes between manufacturing and non-, oordination, and commerce). 2001. Bradley, Stephen P., Jerry A. Hausman, & Richard L. Nolan, editors. Value Creation in E-Business. Findings Things like privacy, spam, cross-border jurisdiction, import/export regulations and Internet service provider liability are all legal issues affecting e-commerce. The findings, including additional data compar, global and local firms from participating in e- -.20 p... And provided justification for combining these of globalization on business management is interconnection of international markets and managing in! 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