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Understanding the implementation of e-business strategies: Evidence from Luxembourg

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Author Info
Martin, Ludivine

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Abstract

Our empirical study aims at identifying the drivers of the implementation of an e-business strategy by firms located in Luxembourg. The setting up of such a strategy is apprehended through the website and the type of strategy through the functionalities available on the Internet. Thus we distinguish an information-oriented strategy from a commercially oriented one. Probit analyses and models derived from count data models are conducted on a dataset of website investments by about 1100 firms located in Luxembourg. Our results show that the sale of online fashionable products like tourism, the ownership of a well-known brand and the follow-up of rivals' behaviours are highly significant determinants of the adoption and development of an e-business strategy. Financial, human and technological resources seem to favour the adoption of such a strategy but have no significant influence on the choice of the strategy pursued. Moreover the use of technologies that make the business process more flexible, public actions that diffuse best practices concerning technologies adoption and being the leader on the market are specific drivers of the deployment of an e-business strategy. Finally, an intense perceived competition negatively influences the decision to invest heavily in e-commerce.

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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 13645.

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Date of creation: Feb 2009
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Handle: RePEc:pra:mprapa:13645

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Related research
Keywords: e-business strategies; website adoption and investment; right truncated Poisson regression;

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Find related papers by JEL classification:
L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - Technological Change: Choices and Consequences; Diffusion Processes
L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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    Other versions:
  3. Geroski, P. A., 2000. "Models of technology diffusion," Research Policy, Elsevier, vol. 29(4-5), pages 603-625, April. [Downloadable!] (restricted)
    Other versions:
  4. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January. [Downloadable!] (restricted)
  5. Dinlersoz, Emin M. & Pereira, Pedro, 2007. "On the diffusion of electronic commerce," International Journal of Industrial Organization, Elsevier, vol. 25(3), pages 541-574, June. [Downloadable!] (restricted)
    Other versions:
  6. Anna Giunta & Francesco Trivieri, 2007. "Understanding the determinants of information technology adoption: evidence from Italian manufacturing firms," Applied Economics, Taylor and Francis Journals, vol. 39(10), pages 1325-1334. [Downloadable!] (restricted)
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    Other versions:
  9. Martin, Ludivine & Penard, Thierry, 2005. "Investing in a Website: A Top Dog or a Resource-Based Strategy for Firms?," MPRA Paper 2503, University Library of Munich, Germany. [Downloadable!]
  10. Gurmu, Shiferaw & Trivedi, Pravin K., 1992. "Overdispersion tests for truncated Poisson regression models," Journal of Econometrics, Elsevier, vol. 54(1-3), pages 347-370. [Downloadable!] (restricted)
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  12. Baldwin, John & Lin, Zhengxi, 2002. "Impediments to advanced technology adoption for Canadian manufacturers," Research Policy, Elsevier, vol. 31(1), pages 1-18, January. [Downloadable!] (restricted)
    Other versions:
  13. Grogger, J T & Carson, Richard T, 1991. "Models for Truncated Counts," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 6(3), pages 225-38, July-Sept. [Downloadable!] (restricted)
  14. Ruby Roy Dholakia & Nir Kshetri, 2004. "Factors Impacting the Adoption of the Internet among SMEs," Small Business Economics, Springer, vol. 23(4), pages 311-322, November. [Downloadable!]
  15. Feindt, Sylvie & Jeffcoate, Judith & Chappell, Caroline, 2002. " Identifying Success Factors for Rapid Growth in SME E-commerce," Small Business Economics, Springer, vol. 19(1), pages 51-62, August. [Downloadable!] (restricted)
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This page was last updated on 2009-11-27.

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