Evolutionary patterns in e‐business strategy

Abstract

Purpose

In 2003 the authors investigated the level of adoption of e‐business by manufacturing firms in Europe. Four company strategies were identified based on different extents of adoption of internet‐based tools for interaction with customers and/or suppliers. The purpose of this paper is to replicate, those analyses using the new release of the International Manufacturing Strategy Survey (IMSS) IV. These new results are compared with previous ones in order to determine whether modeling previously described in the literature remains valid.

Design/methodology/approach

Data collected in Europe through IMSS III and IV are used. In particular, companies are clustered according to e‐business practices adopted in supply chain management (SCM) and the degree of adoption of e‐business between the two editions of the research is compared. A longitudinal analysis is also conducted using data from companies participating in both editions of the survey.

Findings

It is shown that the fundamental aspects of the modeling approach earlier proposed in the literature remain valid, with a higher average level of adoption of e‐business tools in the more recent edition of the study. However, the four‐cluster model is shown to be no longer valid. In the more recent dataset, three clusters emerge. They are characterized by different levels of adoption of e‐business, balanced between e‐commerce and e‐procurement. The longitudinal analysis shows that the firms participating in both editions of the research have changed their strategy, coherently to what the overall sample does.

Research limitations/implications

This paper is focused on the assembly industry and only part of the sample is strictly longitudinal. Further research is needed to relate e‐business strategy with performance and to distinguish among the various tools available.

Practical implications

This paper also shows that the adoption of e‐business is increasing among small and medium firms, even if the practices adopted by any individual company remain limited. Results show that a cautious adoption is preferable to more radical implementation, since some firms have actually reduced their initial efforts to adopt e‐business.

Originality/value

The literature currently lacks extensive, longitudinal studies on e‐business strategies in SCM. The paper shows how the concept has rapidly evolved recently, and it modifies models that are proposed only a few years ago in the face of new data.

Citation

Caniato, F., Cagliano, R., Kalchschmidt, M., Golini, R. and Spina, G. (2009), "Evolutionary patterns in e‐business strategy", International Journal of Operations & Production Management, Vol. 29 No. 9, pp. 921-945. https://doi.org/10.1108/01443570910986229