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An Empirical Analysis of the Determinants of Success of Food and Agribusiness E-Commerce Firms

Author

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  • Montealegre, Fernando
  • Thompson, Sarahelen R.
  • Eales, James S.

Abstract

E-commerce's value creation in agricultural and food markets will only occur to the extent that e-commerce firms exist throughout the supply chain. The problem is that e-commerce firms throughout the agricultural and food supply chain have faced a serious challenge in staying in business. Many have been forced to exit the market, and only a few have survived to develop into functional web-based businesses. The objective of this research study is to identify characteristics that are associated with successful e-commerce firms throughout the agricultural and food supply chain. Relevant e-commerce and agricultural e-commerce literature suggests several characteristics that influence the success for agricultural and food e-commerce firms. A limited-dependent variable technique, logistic regression, is used to relate websites' characteristics to their probability of survival.

Suggested Citation

  • Montealegre, Fernando & Thompson, Sarahelen R. & Eales, James S., 2007. "An Empirical Analysis of the Determinants of Success of Food and Agribusiness E-Commerce Firms," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 10(1), pages 1-21.
    • Handle: RePEc:ags:ifaamr:8168
    DOI: 10.22004/ag.econ.8168
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    References listed on IDEAS

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    1. Wheatley, W. Parker & Buhr, Brian L. & Dipietre, Dennis, 2001. "E-Commerce In Agriculture: Development, Strategy, And Market Implications," Staff Papers 13938, University of Minnesota, Department of Applied Economics.
    2. Lucking-Reiley, David, 2000. "Auctions on the Internet: What's Being Auctioned, and How?," Journal of Industrial Economics, Wiley Blackwell, vol. 48(3), pages 227-252, September.
    3. Nir Vulkan, 2003. "Introduction to The Economics of E-Commerce: A Strategic Guide to Understanding and Designing the Online Marketplace," Introductory Chapters, in: The Economics of E-Commerce: A Strategic Guide to Understanding and Designing the Online Marketplace, Princeton University Press.
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    Citations

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    Cited by:

    1. Vassalos, Michael & Lim, Kar Ho, 2016. "Farmers’ Willingness to Pay for Various Features of Electronic Food Marketing Platforms," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(2), pages 1-19, May.
    2. Jian Li & Xin Yan & Yongwu Li & Xuefan Dong, 2023. "Optimizing the Agricultural Supply Chain through E-Commerce: A Case Study of Tudouec in Inner Mongolia, China," IJERPH, MDPI, vol. 20(5), pages 1-19, February.
    3. Vassalos, Michael & Lim, Kar Ho, 2014. "Are Food Exchange Websites the Next Big Thing in Food Marketing? A Latent Class Analysis," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170199, Agricultural and Applied Economics Association.
    4. Zapata, Samuel D. & Isengildina-Massa, Olga & Carpio, Carlos E. & Lamie, R. David, 2016. "Does E-Commerce Help Farmers’ Markets? Measuring the Impact of MarketMaker," Journal of Food Distribution Research, Food Distribution Research Society, vol. 47(2), pages 1-18, July.
    5. Argade Aashish & Laha, A. K., 2018. "E-commerce in oligopsonistic and relational markets – An empirical investigation of transaction costs in agricultural e-markets in India from farmers’ perspective," IIMA Working Papers WP 2018-06-01, Indian Institute of Management Ahmedabad, Research and Publication Department.
    6. Zeng, Yiwu & Jia, Fu & Wan, Li & Guo, Hongdong, 2017. "E-commerce in agri-food sector: a systematic literature review," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 20(4), February.
    7. Ljutić, B. Ž. & Đurđević, D. & Đorđević, Z. & Damnjanovic, A., 2016. "Serbian Large Agribusiness Corporations Knocking at the Door of E-Agribusiness Revolution," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 8(2), pages 1-9, June.
    8. Zapata, Samuel D. & Carpio, Carlos E. & Isengildina-Massa, Olga & Lamie, R. David, 2013. "The Economic Impact of Services Provided by an Electronic Trade Platform: The Case of MarketMaker," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 38(3), pages 1-20.
    9. H. Holly Wang & Yu Jiang & Shaosheng Jin & Qiujie Zheng, 2022. "New online market connecting Chinese consumers and small farms to improve food safety and environment," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 70(4), pages 305-324, December.
    10. H. Holly Wang & Na Hao & Qingjie Zhou & Michael E. Wetzstein & Yong Wang, 2019. "Is fresh food shopping sticky to retail channels and online platforms? Evidence and implications in the digital era," Agribusiness, John Wiley & Sons, Ltd., vol. 35(1), pages 6-19, January.

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