Title

E-Commerce Strategies and Corporate Performance: An Empirical Investigation

Document Type

Article

Publication Date

1-1-2014

Description

Purpose – The purpose of this study is twofold. First, the relevant literature is reviewed briefly to provide a strategic context of the different views on strategy development. In the process, the linkages between the e-commerce view of strategy and previous views are explored. As such, the perspectives of different schools of thought on strategy are briefly highlighted. Second, the different dimensions of the e-commerce strategy and their impact on organizational performance are investigated. Design/methodology/approach – Asurvey integrating different theoretical views of value creation was developed and sent to Portuguese e-commerce firms to assess the underlying dimensions of their strategies through factorial analysis. Then, a clustering analysis was performed to determine strategic groups to compare corporate performance. Findings – Three e-commerce dimensions were identified: marketing, innovation and efficiency. Results of data analysis suggest that differentiation factors have impact on corporate performance in the context of virtual markets. Research limitations/implications – Although the Portuguese specific nature of the study could be seen as a limitation of the generalization of the findings, in the authors’ view, it is not truly a limitation because Portuguese executives face the same challenges that other countries counterparts, due to the universal application of e-commerce. Moreover, the use of a Portuguese sample validates findings from other cultural settings, contributing toward a unified theory and testing its applicability. In this way, it is an opportunity rather then a limitation. Practical implications – The research identifies what is strategic and highlights the competitive methods that enhance differentiation in virtual markets, which could be useful as a framework for strategic formulation. Moreover, it provides a theoretical rational for investments in intangible assets. Originality/value – The development of a survey to assess e-commerce strategies and the identification of the e-commerce strategic dimensions are the main contributions of this research, which highlights the importance of differentiation factors in virtual markets.

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