Benefits, Impediments and Critical Success Factors in B2C E-Business Adoption

Technovation 25 (2005) 1251–1262 www.elsevier.com/locate/technovation

Benefits, impediments and critical success factors in B2C E-business adoption
Chris Dubelaar, Amrik Sohal*, Vedrana Savic
Department of Marketing, Faculty of Business and Economics, Monash University, P.O. Box 197, Caulfield East, Vic. 3145, Australia

Abstract This paper reports the results of a study carried out to assess the benefits, impediments and major critical success factors in adopting business to consumer e-business solutions. A case study method of investigation was used, and the experiences of six online companies and two bricks and mortar companies were documented. The major impediments identified are: leadership issues, operational issues, technology, and ineffective solution design. The critical success factors in the adoption of e-business are identified as: combining e-business knowledge, value proposition and delivery measurement, customer satisfaction and retention, monitoring internal processes and competitor activity, and finally building trust. Findings suggest that above all, adoption of e-business should be appropriate, relevant, value adding, and operationally as well as strategically viable for an organization instead of being a result of apprehensive compliance. q 2004 Published by Elsevier Ltd.
Keywords: B2C adoption; E-business; Critical success factors; B2C benefits; B2C impediments

1. Introduction Organizations adopt e-business for several reasons and perceived benefits. Some of these benefits include better management of information, better integration of suppliers and vendors, better channel partnership, lower transaction costs, better market understanding, and expanded geographical coverage (Damanpour, 2001). Typically, successful exploitation of e-business requires making a creative link between an organization’s strategy and the technology that supports it, and managing pervasive information and communication technology applications that are increasingly

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Chris Dubelaar graduated in 1985 from the University of Waterloo with an honours degree in Electrical Engineering (BASc) specialising in control systems. Following 2 years with General Motors in engineering he completed an MBA at Wilfrid Laurier University in 1988. He was then appointed as a lecturer at Laurier in 1988, and subsequently was a visiting fellow at the University of Waikato in New Zealand in 1989. He completed his PhD at the University of Alberta in 1996 in the area of retail productivity. He was also the founding member and head of the Department of Marketing at Sydney University in the first half of 1994 and was a visiting fellow again at the University of Waikato in the second half of 1994. In 1995, Chris joined the University of New South Wales as a lecturer in Marketing and in 2000 he moved to Monash University as a Senior Lecturer in Marketing specialising in e-Commerce and e-Business. Chris is currently an Associate Professor at Monash University and the director of the Honours Degree in Marketing, the Masters of Marketing (interactive), and the Masters in e-Business. Amrik S. Sohal, BEng (Hons), MBA, PhD, is a Professor in the Department of Management at Monash University and Associate Dean (Research Degrees) for the Faculty of Business and Economics. His research and teaching is in areas of operations/manufacturing management, quality management, supply chain management and technology management. He has published over 100 journal articles and co-authored three books. Vedrana Savic is an associate researcher in the Faculty of Business and Economics, Monash University, Melbourne, Australia. She is also a business analyst in strategy and business architecture department of one of the world’s leading management consulting and technology services firm in Melbourne, Australia. Vedrana holds a Bachelor of Business and Economics (Honours) and a Bachelor of Electronic Commerce from the Monash University. Her current research encompasses strategic fit of e-business and implementation of e-business initiatives in large, established organizations. Vedrana has authored and co-authored numerous papers published in refereed journals and national conferences.