Advertisement

Internet-Based Channel Orientation for Domesticated Services Firm: Some Drivers and Consequences

  • Michael Adu KwartengEmail author
  • Abdul Bashiru Jibril
  • Fortune Nwaiwu
  • Michal Pilik
  • Maged Ali
Conference paper
Part of the IFIP Advances in Information and Communication Technology book series (IFIPAICT, volume 558)

Abstract

Undeniably, several studies have reported on both antecedents and the consequents of infusing internet-based channel orientation into the operations of small or micro domesticated firms. However, in the developing and to be precise the African context, such studies are somewhat scant. To address this yearlong theoretical and practical gap, this study takes inspirations from the theoretical underpinnings of both micro-institutional view of the firm as well as resource strategic action. Henceforth, this study supplements the existing internet orientation literature and adds to the on-going debate why internet channel orientation stands as the focal point and engine of survival in small and midsized enterprises. In light of this, this study proposes that entrepreneurial capability of the firm and industry competition predict Internet-based channel orientation (IORIENT) of the firm. Furthermore, the study tests the assumption that the utilisation IORIENT not only potentially contributes to greater market-sensing capability but that it can also indirectly lead to firm competitiveness. Survey data from 198 firms offer initial support for the research propositions. Overall, the research study encourages firms not to only invest in Internet marketing tools but also to effectively use these tools as this is critical to their long-term competitiveness.

Keywords

Internet orientation Firm’s competitiveness Domesticated service firms Drivers Consequences 

Notes

Acknowledgement

This work was supported by the Internal Grant Agency of FaME through TBU in Zlín No. IGA/FaME/2019/008; Project title: Country-of-origin effect on domestic product (brand) purchasing intention and SME’s sustainability in developing countries. Also by the financial support of research project NPU I no. MSMT-7778/2018 RVO - Digital Transformation and its Impact on Customer Behaviour and Business Processes in Traditional and Online markets.

References

  1. 1.
    Anandarajan, M., Anandarajan, A., Wen, H.J.: Extranets: a tool for cost control in a value chain framework. Ind. Manag. Data Syst. 98(3), 120–128 (1998)Google Scholar
  2. 2.
    Aragon-Correa, J., Cordón-Pozo, E.: The influence of strategic dimensions and the environment on the introduction of internet as innovation into small and medium-sized enterprises. Technol. Anal. Strategic Manag. 17(2), 205–218 (2005)Google Scholar
  3. 3.
    Aragón-Correa, J.A., Hurtado-Torres, N., Sharma, S., García-Morales, V.J.: Environmental strategy and performance in small firms: a resource-based perspective. J. Environ. Manag. 86(1), 88–103 (2008)Google Scholar
  4. 4.
    Armstrong, G., Adam, S., Denize, S., Kotler, P.: Principles of Marketing. Pearson Australia (2014)Google Scholar
  5. 5.
    Auger, P., BarNir, A., Gallaugher, J.M.: Strategic orientation, competition, and internet-based electronic commerce. Inf. Technol. Manag. 4(2–3), 139–164 (2003)Google Scholar
  6. 6.
    Avlonitis, G.J., Karayanni, D.A.: The impact of internet use on business-to-business marketing: examples from American and European companies. Ind. Market. Manag. 29(5), 441–459 (2000)Google Scholar
  7. 7.
    Becherer, R.C., Halstead, D., Haynes, P.J.: Marketing orientation in SMEs: effects of the internet environment. N. Engl. J. Entrepreneurship 6(1), 13 (2003)Google Scholar
  8. 8.
    Bengtsson, M., Boter, H., Vanyushyn, V.: Integrating the internet and marketing operations a study of antecedents in firms of different size. Int. Small Bus. J. 25(1), 27–48 (2007)Google Scholar
  9. 9.
    Glavas, C., Mathews, S.: How international entrepreneurship characteristics influence Internet capabilities for the international business processes of the firm. Int. Bus. Rev. 23(1), 228–245 (2014)Google Scholar
  10. 10.
    Celuch, K., Murphy, G.: SME Internet use and strategic flexibility: the moderating effect of IT market orientation. J. Market. Manag. 26(1–2), 131–145 (2010)Google Scholar
  11. 11.
    Chaston, I., Mangles, T.: Relationship marketing in online business-to-business markets: a pilot investigation of small UK manufacturing firms. Eur. J. Market. 37(56), 753–773 (2003)Google Scholar
  12. 12.
    Sigalas, C., Pekka Economou, V., Georgopoulos, N.B.: Developing a measure of competitive advantage. J. Strategy Manag. 6(4), 320–342 (2013)Google Scholar
  13. 13.
    Doherty, E., Ramsey, E., Harrigan, P., Ibbotson, P.: Impact of broadband internet technologies on business performance of Irish SMEs. Strategic Change 25(6), 693–716 (2016)Google Scholar
  14. 14.
    Fang, S.-R., Chang, E., Ou, C.-C., Chou, C.-H.: Internal market orientation, market capabilities and learning orientation. Eur. J. Market. 48(1/2), 170–192 (2014)Google Scholar
  15. 15.
    Foley, A., Fahy, J.: Towards a further understanding of the development of market orientation in the firm: a conceptual framework based on the market-sensing capability. J. Strateg. Market. 12(4), 219–230 (2004)Google Scholar
  16. 16.
    Ghasemaghaei, M., Hassanein, K., Turel, O.: Increasing firm agility through the use of data analytics: the role of fit. Decis. Support Syst. 101, 95–105 (2017)Google Scholar
  17. 17.
    Hair, F.J., Sarstedt, M., Hopkins, L., Kuppelwieser, V.G.: Partial least squares structural equation modeling (PLS-SEM) an emerging tool in business research. Eur. Bus. Rev. 26(2), 106–121 (2014)Google Scholar
  18. 18.
    Hamill, J., Gregory, K.: Internet marketing in the internationalisation of UK SMEs. J. Market. Manag. 13(1–3), 9–28 (1997)Google Scholar
  19. 19.
    Harrigan, P., Ramsey, E., Ibbotson, P.: e-CRM in SMEs: an exploratory study in Northern Ireland. Market. Intell. Plan. 26(4), 385–404 (2008).  https://doi.org/10.1108/02634500810879296Google Scholar
  20. 20.
    Harrigan, P., Ramsey, E., Ibbotson, P.: Entrepreneurial marketing in SMEs: the key capabilities of e-CRM. J. Res. Market. Entrepreneurship 14(1), 40–64 (2012).  https://doi.org/10.1108/14715201211246760Google Scholar
  21. 21.
    Henseler, J., Dijkstra, T.K.: ADANCO 2.0. Kleve: Composite Modeling (2015)Google Scholar
  22. 22.
    Henseler, J., Ringle, C.M., Sarstedt, M.: A new criterion for assessing discriminant validity in variance-based structural equation modelling. J. Acad. Market. Sci. 43(1), 115–135 (2015)Google Scholar
  23. 23.
  24. 24.
    Iacovone, L., Pereira-Lopez, M.D.L.P., Schiffbauer, M.P.: ICT use, competitive pressures and firm performance in Mexico. In: Policy Research Working Paper; no. WPS 7629. Washington, D.C.: World Bank Group (2016). http://documents.worldbank.org/curated/en/129511467999689857/ICT-use-competitive-pressures-and-firm-performance-in-Mexico
  25. 25.
    Hamill, J., Gregory, K.: Internet marketing in the internationalisation of U.K. SME’s. J. Market. Manag. 13(1/3), 9–28 (1997)Google Scholar
  26. 26.
    Jaworski, B.J., Kohli, A.K.: Market orientation: antecedents and consequences (1993)Google Scholar
  27. 27.
    Jones, C., Hecker, R., Holland, P.: Small firm Internet adoption: opportunities forgone, a journey not begun. J. Small Bus. Enterprise Dev. 10(3), 287–297 (2003)Google Scholar
  28. 28.
    Han, J.K., Kim, N., Srivastava, R.K.: Market orientation and organizational performance: is innovation a missing link? J. Market. 62(4), 30–45 (1998)Google Scholar
  29. 29.
    Ketchen Jr., D.J., Hult, G.T.M., Slater, S.F.: Toward greater understanding of market orientation and the resource-based view. Strateg. Manag. J. 28(9), 961–964 (2007)Google Scholar
  30. 30.
    Lagrosen, S.: Effects of the internet on the marketing communication of service companies. J. Serv. Market. 19(2), 63–69 (2005)Google Scholar
  31. 31.
    Laukkanen, T., Nagy, G., Hirvonen, S., Reijonen, H., Pasanen, M.: The effect of strategic orientations on business performance in SMEs: a multigroup analysis comparing Hungary and Finland. Int. Market. Rev. 30(6), 510–535 (2013)Google Scholar
  32. 32.
    Leeflang, P.S.H., Verhoef, P.C., Dahlström, P., Freundt, T.: Challenges and solutions for marketing in a digital era. Eur. Manag. J. 32(1), 1–12 (2014).  https://doi.org/10.1016/j.emj.2013.12.001Google Scholar
  33. 33.
    Mostafa, R.H., Wheeler, C., Jones, M.V.: Entrepreneurial orientation, commitment to the Internet and export performance in small and medium sized exporting firms. J. Int. Entrepreneurship 3(4), 291–302 (2005)Google Scholar
  34. 34.
    Mostafa, R.H., Wheeler, C., Jones, M.V.: Entrepreneurial orientation, commitment to the Internet and export performance in small and medium sized exporting firms. J. Int. Entrepreneurship 3(4), 291–302 (2006)Google Scholar
  35. 35.
    Muthee, J., Ngugi, K.: Influence of entrepreneurial marketing on the growth of SMEs in Kiambu Town-CBD, Kenya. Eur. J. Bus. Manag. 11(11), 361–377 (2014)Google Scholar
  36. 36.
    del Aguila Obra, A.R., Cámara, S.B., Meléndez, A.P.: Internet usage and competitive advantage: the impact of the Internet on an old economy industry in Spain. Internet Res. 12(5), 391–401 (2002)Google Scholar
  37. 37.
    O’Dwyer, M., Gilmore, A., Carson, D.: Innovative marketing in SMEs. Eur. J. Market. 43(1/2), 46–61 (2009)Google Scholar
  38. 38.
    Peng, M.W., Sun, S.L., Pinkham, B., Chen, H.: The institution-based view as a third leg for a strategy tripod. Acad. Manag. Perspect. 23(3), 63–81 (2009)Google Scholar
  39. 39.
    Porter, M.E.: Strategy and the Internet. Harvard Bus. Rev. 79(3), 62–78, 164 (2001).  https://doi.org/10.1108/eb025570
  40. 40.
    Powell, T.C., Dent-Micallef, A.: Information technology as competitive advantage: the role of human, business, and technology resources. Strateg. Manag. J. 18(5), 375–405 (1997)Google Scholar
  41. 41.
    Hinson, R., Adjasi, C.: The Internet and export: some cross-country evidence from selected African countries. J. Internet Commerce 8(3), 309–324 (2009)Google Scholar
  42. 42.
    Ragins, E.J., Greco, A.J.: Customer relationship management and E-business: more than a software solution. Rev. Bus. Winter 24(1), 25–30 (2003)Google Scholar
  43. 43.
    Rumelt, R.P.: Towards a strategic theory of the firm. Resources, firms, and strategies: a reader in the resource-based perspective, pp. 131–145 (1997)Google Scholar
  44. 44.
    Russo, M.V., Fouts, P.A.: A resource-based perspective on corporate environmental performance and profitability. Acad. Manag. J. 40(3), 534–559 (1997)Google Scholar
  45. 45.
    Quinton, S., Canhoto, A., Molinillo, S., Pera, R., Budhathoki, T.: Conceptualising a digital orientation: antecedents of supporting SME performance in the digital economy. J. Strateg. Market. (2017). Advanced online publication.  https://doi.org/10.1080/0965254x.2016.1258004Google Scholar
  46. 46.
    Sørensen, H.E.: Why competitors matter for market orientation. Eur. J. Market. 43(5/6), 735–761 (2009)Google Scholar
  47. 47.
    Teo, T.S., Pian, Y.: A contingency perspective on Internet adoption and competitive advantage. Eur. J. Inf. Syst. 12(2), 78–92 (2003)Google Scholar
  48. 48.
    Tilley, F.: The gap between the environmental attitudes and the environmental behaviour of small firms. Bus. Strategy Environ. 8(4), 238–248 (1999)Google Scholar
  49. 49.
    Van Dijk, S., Berends, H., Jelinek, M., Romme, A.G.L., Weggeman, M.: Micro-institutional affordances and strategies of radical innovation. Organ. Stud. 32(11), 1485–1513 (2011)Google Scholar
  50. 50.
    Zeng, J., Glaister, K.W.: Competitive dynamics between multinational enterprises and local internet platform companies in the virtual market in China. Br. J. Manag. 27(3), 479–496 (2016)Google Scholar
  51. 51.
    Zhou, K.Z., Li, C.B.: How strategic orientations influence the building of dynamic capability in emerging economies. J. Bus. Res. 63, 224–231 (2010)Google Scholar
  52. 52.
    Roberts, E.S.: In defence of the survey method: an illustration from a study of user information satisfaction. Account. Finance 39(1), 53–77 (1999)Google Scholar

Copyright information

© IFIP International Federation for Information Processing 2019

Authors and Affiliations

  1. 1.Faculty of Management and EconomicsTomas Bata University in ZlinZlinCzech Republic
  2. 2.Essex Business SchoolColchesterUK

Personalised recommendations