Asia pacific journal of information systems

The Korea Society of Management Information Systems (한국경영정보학회)
권호 표지

Critical Success Factors for Electronic Commerce: Comparative Analysis between Korea and U.S.A.

전자상거래의 성공요인: 한미 비교분석

  • Sung, Tae-Kyung (Department of Management Information Systems, Kyonggi University) ;
  • Lee, Sang-Kyu (Department of Economics, The University of Suwon)
  • 성태경 (경기대학교 경영정보학과) ;
  • 이상규 (수원대학교 경제.금융학과)
  • Published : 2002.12.31
Download PDF
⟨ Previous Next ⟩

Abstract

The three main purposes of this paper are to (1) identify critical success factors(CSF's) for electronic commerce(EC), (2) investigate the explanatory power of these CSF's on firm performance, and (3) compare differences in evaluating CSF's and explaining impact of CSF's on performance between Korean and U.S.A. EC managers. Through a literature review and interviews with managers in EC firms, a list of 16 CSF's consisting of 111 items was compiled. In the second stage, questionnaires were administered to managers of EC companies in Seoul, Korea and Texas, U.S.A. Survey results show that CSF's have very significant explanatory power for firm performance in both Korean and U.S.A. While security, privacy, technical expertise, information about goods/services, and variety of goods/services are the most explanatory CSF's in Korea, evaluation of EC operations, technical expertise, and ease of use show most explanatory power in U.S.A. This analysis confirms the fact that customers use EC if they feel comfortable about navigating EC for information about a variety of goods/services without technical difficulty and in a secure and private way.

Keywords

References

  1. Adam, Nabil, R., Dogramaci, Oktay, Gangopadhyay, Aryya, and Yesha, Yelena, Electronic Commerce: Technical, Business, and Legal Issues, Upper Saddle River: NJ, Prentice-Hall, 1999
  2. Aldridge, A., Forcht, K., Pierson, J. Get linked or get lost: marketing strategy for the Internet. Internet Research, Vol. 7, No. 3, 1997, pp. 161-169 https://doi.org/10.1108/10662249710171805
  3. Armstrong, C.P. and Sambamurthy. V., 'Information Technology Assimilation In Firms: The Influence Of Senior Leadership And IT Infrastructures,' Information Systems Research, Vol. 10, No. 4., December 1999
  4. Athey, T., 'Leadership Challenges For the Future,' IEEE Software, May/June, 2000
  5. Attewell, P., Information Technology and the Productivity Paradox, Mimeograph, City University of New York, 1993
  6. Barua, Anitesh, Whinston, Andrew B. and Yin, Fang, 'Value and Productivity in the Internet Economy,' IEEE Computer, May 2000a, pp. 2-5
  7. Barua, Anitesh, Whinston, Andrew B. and Yin, Fang, 'Not all Dot Corns are Created Equal: An Exploratory Investigation of the Productivity of InternetBased Companies,' Center for Research in Electronic Commerce, University of Texas at Austin, May 2000b
  8. Barua, Anitesh, Konana, Prabhudev, Whinston, Andrew, and Fang, Yin, 'Making E-Business Pay: Eight Key Drivers for Operational Success,' IT Pro, November/December 2000c, pp. 2-10
  9. Bennett, D. and Eustis, B., 'Electronic Commerce: Integration of Web Technologies with Business Models,' Information Systems Frontiers, Vol. 1, No. 2, 1999
  10. Bharadwaj, A., Bharadwaj, S. and Konsynski, B., 'Information Technology Effects on Firm Performance as Measured by Tobin's q,' Management Science, Vol. 45, No. 6, 1999, pp. 1008-1024
  11. Bharadwaj, Anandhi., Sambamurthy, V., and Zmud, Robert W., 'IT Capabilities: A Multidimensional Operationalization and Assessment of Impacts on Firm Performance,' Working Paper, August 2000
  12. Brynjolfsson, Erik, 'The Productivity Paradox of Information Technology,' Communications of the ACM, Vol. 35, December 1993, pp. 66-67
  13. Brynjolfsson, Erik and Kahin, Brian (eds.), Understanding the Digital Economy, Boston, MA: MIT Press, 2000
  14. Brown, Frederick G., Principles of Educational and Psychological Testing, New York: Holt, Rinehart and Winston, 1983
  15. Burn, J. and Barnett, M., 'Emerging Virtual Models for Global E-Commerce - World Wide Retailing in the E-Grocery Business,' Journal of Global Information Technology Management, Vol. 3, No. 1, 2000
  16. Chen, K.C. and Lee, J., 'Accounting Measures of Business Performance and Tobin's q Theory,' Journal of Accounting, Auditing and Finance, Vol. 10, 1995, pp. 587-607 https://doi.org/10.1177/0148558X9501000310
  17. Choi, Soon-Yong and Whinston, Andrew B., The Internet Economy: Technology and Practice, SmartEcon Publishing, 2000
  18. Cisco Systems and the University of Texas at Austin, Measuring the Internet Economy, Report, January 2001
  19. Day, A., 'A model for Monitoring Web Site Effectiveness,' Internet Research, Vol. 7, No. 2, 1997, pp. 109-115 https://doi.org/10.1108/10662249710165244
  20. Delone, William H. and Ephrain R. McLean, 'Information Systems Success: The Quest for the Dependent Variable,' Information Systems Research, Vol. 3, No. 1, 1992, pp. 60-95 https://doi.org/10.1287/isre.3.1.60
  21. Elofson, G. and Robinson, W.N., 'Creating a Custom Mass-Production Channel on the Internet,' Communications of the ACM, Vol. 41, No. 3, March 1998, pp. 56-62 https://doi.org/10.1145/272287.272298
  22. eMarketer, The eCommerce: B2B Report, 2000
  23. Fulkerson, B., 'A response to Dynamic Change in the Market Place,' Decision Support Systems, Vol. 21, No. 3, November 1997, pp. 199-214 https://doi.org/10.1016/S0167-9236(97)00029-8
  24. Gebauer, J. and Schad, A., 'Between Flexibility and Automation: An Evaluation of Web Technology from a Business Process Perspective,' Journal of Computer-Mediated Communication, Vol. 5, No. 2, 1995
  25. Gonsalves, G.C., Lederer, A.L., Mahaney, R.C., Newkirk, H.E., 'A Customer Resource Life Cycle Interpretation of the Impact of the World Wide Web on Competitiveness: Expectations and Achievements,' International Journal of Electronic Commerce, Vol. 4, No. 1, Fall 1999, p. 103
  26. Hagel, John and Jeffrey F. Rayport, 'The New Infomediaries,' 'The McKinsey Quarterly, 1997a, No. 4, pp. 55-69
  27. Hagel, John and Jeffrey F. Rayport, 'The Coming Battle for Customer Information,' Harvard Business Review, January-February 1997b, pp. 53-65
  28. Hall, B.H., 'The Stock Market's Valuation of R&D Investment During the 1980's,' AEA Papers and Proceedings, May 1993, pp. 259-264
  29. Haltiwanger, John and Jarmin, Ron S., 'Measuring the Digital Economy,' presented at a White-House-NSF Conference: Understanding the Digital Economy: Data, Tools, and Research, May 1999, Department of Commerce, Washington, DC
  30. Han Kyeong Seok and Noh, Mee Hyun, 'Critical Failure Factors that Discourage Electronic Commerce Growth,' International Journal of Electronic Commerce, Vol. 2, No. 2, 1999-2000, pp. 25-44
  31. Hitt, L. and Brynjolfsson, E., 'Productivity, Business Profitability, and Consumer Surplus: Three Different Measures of Information Technology Value,' MIS Quarterly, Vol. 20, No. 2, 1996, pp. 121-142 https://doi.org/10.2307/249475
  32. Hoffman, D.L., and Novak, T.P., 'A New Marketing Paradigm for Electronic Commerce,' The Information Society, Vol. 13, Jan-Mar 1997, pp. 43-54 https://doi.org/10.1080/019722497129278
  33. Huff, Sid, Wade, Michael, Parent, Michael, Schneberger, S.C. and Newson, P., Cases in Electronic Commerce, Irwin/McGrawHill, 2000
  34. Jahng, J., Jain, H. and Ramamurthy, K., 'Product Complexity, Richness of Webbased Electronic Commerce Systems, and System Success: A Proposed Research Framework,' in Proceedings of Proceedings of the Fifth Americas Conference on Information Systems, Milwaukee, Wisconsin, 1999, pp. 520-522
  35. Jarvenpaa, S.L. and Tiller, E.H., 'Integrating Market, Technology, and Policy Opportunities in E-Business Strategy,' Journal of Strategic Information Systems, Vol. 8, No. 3, 1999, pp. 235-249 https://doi.org/10.1016/S0963-8687(99)00025-6
  36. Jutla, Dawn, Bodorik, Peter, and Wang, Yie, 'Developing Internet E-Commerce Benchmarks,' Information Systems, Vol. 24, Issue 6, September 1999, pp. 475-493 https://doi.org/10.1016/S0306-4379(99)00028-9
  37. Klose, M. and Lechner, D., 'Design of Business Media An integrated Model of Electronic Commerce,' in Proceedings of Proceedings of the Fifth Americas Conference on Information Systems (AMCIS'99), Milwaukee, WI, 1999, pp. 559-561
  38. Lee, H.G., Westland, J.C. and Hong, S., 'The Impact of Electronic Marketplaces on Product Prices: An Empirical Study on ADCNET,' International Journal of Electronic Commerce, Vol. 4, No. 2, Winter 1999, pp. 45-58
  39. Lincke, D.M., 'Business Models for the Implementation of Mediating Electronic Product Catalogs,' in Proceedings of Proceedings of the America's Conference on Information Systems (AIS '98), Baltimore, Maryland, 1998
  40. Manchala, D.W., 'E-Commerce Trust Metrics and Models,' IEEE Internet Computing, Vol. 4, No.2, March - April 2000, pp. 36-44 https://doi.org/10.1109/4236.832944
  41. Megna, P. and Mueller, D.C., 'Profit Rates and Intangible Capital,' The Review of Economics and Statistics, 1991, pp. 632-642
  42. Montgomery, C. and Wernerfelt, B., 'Diversification, Ricardian Rents, and Tobin's q,' Rand Journal of Economics, Vol. 19, Winter 1988, pp. 623-32 https://doi.org/10.2307/2555461
  43. Nunally, Jum C., Psychometric Theory, New York: McGraw-Hill, 1978
  44. OECD (Organization for Economic Co-operation and Development), The Economics and Social Impact of Electronic Commerce, 1999
  45. Plant, Robert, eCommerce: Formulation of Strategy, Upper Saddle River: NJ, Prentice-Hall, 1999
  46. Porra, Jaana, 'Electronic Commerce Internet Strategies and Business Models-A Survey,' Information Systems Frontiers, Vol. 1, Issue 4, April 2000, pp. 389-399 https://doi.org/10.1023/A:1010018125730
  47. Reichheld, Frederick. and Phil Schefter, 'E-Loyalty,' Harvard Business Review, July - August 2000, pp. 195-213
  48. Riggins, F.J., 'A Framework for Identifying Web-Based Electronic Commerce Opportunities,' Journal of Organizational Computing and Electronic Commerce, Vol. 9, No. 4, 1999
  49. Roberts, J.H., 'Developing New Rules for New Markets,' Academy of Marketing Science Journal, Vol. 28, No. 1, Winter 2000, pp. 31-44 https://doi.org/10.1177/0092070300281004
  50. Selz, D. and Schuert, P., 'Web Assessment - A Model for the Evaluation and the Assessment of successful Electronic Commerce Applications,' Electronic Markets, Vol. 7, No. 3, 1997, pp. 46-48 https://doi.org/10.1080/10196789700000038
  51. Shaw, Michael J., 'Electronic Commerce: Review of Critical Research Issues,' Information Systems Frontiers, Vol. 1, No. 1, 1999, pp. 95-106 https://doi.org/10.1023/A:1010073013961
  52. Shaw, Michael, Blanning, Robert, Stadler, Troy, and Whinston, Andrew (eds.), Handbook of Electronic Commerce, Springer, 2000
  53. Simon, C.J., and Sullivan, M.W., 'The Measurement and Determinants of Brand Equity: A Financial Approach,' Marketing Science, Vol. 12, Winter 1993, pp. 28-52 https://doi.org/10.1287/mksc.12.1.28
  54. Strader, T.J. and Hendrickson, A.R., 'A Framework for the Analysis of Electronic Market Success,' in Proceedings of Proceedings of the America's Conference on Information Systems (AIS '98), Baltimore Maryland, 1998, pp. 360-362
  55. Tabor, Sharon, W. An Examination of Electronic Commerce and the Internet: Role of Technology, Critical Success Factors and Business Strategy, Ph.D. Dissertation, University of North Texas, 1998
  56. Timmers, P., 'Business Models for Electronic Markets,' Electronic Markets, Vol. 8, No. 2, 1998, pp. 3-8 https://doi.org/10.1080/10196789800000016
  57. U.S. Department of Commerce, The Emerging Digital Economy II, June 1999
  58. Westland, J. Christopher and Clark, Theodore H.K., Global Electronic Commerce: Theory and Case Studies, Cambridge, MA, The MIT Press, 1999