INFLUENCE OF INTERNAL AND EXTERNAL FACTORS ON THE INTRODUCTION OF E-BUSINESS AND E-MARKETING IN AGRIBUSINESS
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Published:
Dec 22, 2022
Keywords:
internet, e-marketing, e-business, factors, technology
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Abstract
The emergence of the Internet, the rise of technology and economic globalization stimulate changes in companies’ operations, including the inevitable changes in the marketing strategy. One of the main trends in modern marketing is focus on the Internet and social media as most significant tools for promotion. As in traditional marketing, in electronic marketing there are also internal and external factors that influence its implementation. The aim of this research is to analyse the various internal and external factors that influence the introduction of E-Marketing to companies’ operations. The sample includes 76 small and medium enterprises (SMEs) from the agribusiness sector in North Macedonia, interviewed with a structured questionnaire. Four groups of factors were isolated, and a detailed explanation was provided of the various aspects that affect the implementation of E-Marketing within the companies. Results showed that the acceptance of E-marketing by agrobusiness SMEs in North Macedonia is significantly affected by the third parties, customers, competitors, and suppliers. Although some E-Marketing tools are already being continuously used, it was noticed a lack of IT capabilities and insufficient management support. Most respondents rated high the need for E-Marketing, with an emphasis on the significant online presence of buyers. The obtained results are especially important for companies that want to encourage an initiative for E-Marketing introduction. It is apparent that there is awareness of E-marketing, yet the companies have to direct their human, financial and technological resources to facilitate the introduction of new technologies and attain support by management and professional team.
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References
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Ghobakhloo, M., & Tang, S. H. (2013). The role of owner/manager in adoption of electronic commerce in small businesses: The case of developing countries. Journal of Small Business and Enterprise Development, 20(4), 754-787.
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Pires, G.D., Aisbett, J. (2001). A dual Marketing and Informational Perspective to E- Commerce Adoption. The Newcastle University Research Publications.
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Ramdani, B., Chevers, D., & Williams, D. A. (2013). SMEs' adoption of enterprise applications: A technology-organisation-environment model. Journal of Small Business and Enterprise Development, 20(4), 735.
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Sila, I. (2013). Factors affecting the adoption of B2B e-commerce technologies. Electronic Commerce Research, 13(2), 199-236. doi: 10.1007/s10660-013-9110-7.
Srinivasan, S., Anderson, R., and Ponnavolu, K. (2002). Customer loyalty in e-commerce: an exploration of its antecedents and consequences. Journal of Retailing, 78(1):41–50, March. doi:10.1016/S0022-4359(01)00065-3.
Wanjau, K., Macharia, N.R. & Ayodo, E.M.A. (2012). Factors affecting adoption of electronic commerce among small-medium enterprises in Kenya: Survey of tour and travel firms in Nairobi. International Journal of Business Humanities and Technology, 2(4):76-91.
Zhang, M., Jansen, B.J., & Chowdhury, A. (2017). Influence of business engagement in online word-of-mouth communication on twitter: A path analysis. Electronic markets: The International Journal on Networked Business, 21(3), 161-175.
Zhu, K. (2004). The complementarity of information technology infrastructure and e-commerce capability: A resource-based assessment of their business value. Journal of Management Information Systems, 2(1), 167-202,
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Chesbrough, H., (2010). Business model innovation: opportunities and barriers. Long Range Planning, 43 (2-3): 354 – 363.
Chong, A. Y.-L., Chan, F. T. S., & Ooi, K.-B. (2012). Predicting consumer decisions to adopt mobile commerce: Cross country empirical examination between China and Malaysia. Decision Support Systems, 53(1), 34–43. doi:10.1016/j.dss.2011.12.001.
Davis, C. H., & Vladica, F. (2006). Use of internet technologies and e-business solutions: a structural model of sources of business value among Canadian micro-enterprises. Proceedings of the 39th Annual HICSS Conference.
Dehkordi G. J., et al. (2012) A Conceptual Study on E-marketing and Its Operation on Firm's Promotion and Understanding Customer’s Response: International Journal of Business and Management; Vol. 7, No. 19; 2012 doi: 10.5539/ijbm.v7n19p114.
Dubihlela, Ј., Kupangwa, W. (2016). Employee perspectives of factors influencing E-business technology, International journal of Business and Management studies, Vol 8, No 1, 2016 ISSN: 1309-8047 (Online).
El-Gohary, H. (2010). E-Marketing-A literature Review from a Small Businesses perspective. International Journal of Business and Social Science, 1(1), 214-244.
El-Gohary, H. (2012). Factors affecting E-Marketing adoption and implementation in tourism firms: An empirical investigation of Egyptian small tourism organisations. Tourism Management, 33(5), 1256- 1269.
European Commission, Executive Agency for Small and Medium-sized Enterprises, Muller, P., Devnani, S., Ladher, R., et al. (2021). Annual report on European SMEs 2020/2021: digitalisation of SMEs: background document. Publications Office. https://data.europa.eu/doi/10.2826/120209
Faloye, D.O. (2014). The adoption of e-commerce in small businesses: empirical evidence from retail sector in Nigeria. Journal of Business and Retail Management Research (JBRMR), 8(2):54-64.
Gáti M. (2015). Corvinus University of Budapest, Doctoral School of Management and Business Administration: Influencing factors of small and medium-sized enterprices’ marketing activities – in particular as regards on online marketing activities 45.
Ghobakhloo, M., & Tang, S. H. (2013). The role of owner/manager in adoption of electronic commerce in small businesses: The case of developing countries. Journal of Small Business and Enterprise Development, 20(4), 754-787.
Hameed, Counsell & Swift. (2012). A conceptual model for the process of IT innovation adoption in organizations. Journal of Engineering and Technology Management. 29. 358–390. 10.1016/j.jengtecman.2012.03.007.
Hove, P. & Chikungwa, T. (2013). Internal factors affecting the successful growth and survival of small and micro agri-business firms in Alice Communal area. Journal of Economics, 4(1):57-67.
Iddris, F. (2012). Adoption of E-Commerce solutions in small and medium-sized enterprises in Ghana. European Journal of Business and Management, 4(10), 48-57.
Jere, M., Jere, A. & Aspeling, J. (2014). Informal and SMME Retailers in South Africa: Project 2014-02. Wholesale & Retail Leadership Chair. Cape Peninsula University of Technology. [Online]. Available: http://wrlc.org.za/wp-content/uploads/2014/12/Informal-and-SMME-retailers-in-SA-Drivers-and-Barriers.pdf [Accessed 12 April 2016].
Jones, P., Beynon-Davies, P., Apulu, I., Latham, A., & Moreton, R. (2011). Factors affecting the effective utilisation and adoption of sophisticated ICT solutions: Case studies of SMEs in Lagos, Nigeria. Journal of Systems and Information Technology, 13(2), 125-143.
Kshetri, N. (2008). Barriers to e-commerce and competitive business models in developing countries: A case study. Electronic commerce research and applications, 6(4), 443-452.
Lee, R. P., & Grewal, R. (2004). Strategic responses to new technologies and their impact on firm performance. Journal of Marketing, 68,157–171.
doi:http://dx.doi.org/10.1509/jmkg.68.4.157.42730.
Li, P.X. and Xie, W. (2012). A Strategic Framework for Determining E-Commerce Adoption. Journal of Technology Management in China, 7, 22-35.
http://dx.doi.org/10.1108/17468771211207321.
Liang, Ting-Peng & Huang, Jin-Shiang. (1998). An Empirical Study on Consumer Acceptance of Products in Electronic Markets: A Transaction Cost Model. Decision Support Systems. 24. 29-43. 10.1016/S0167-9236(98)00061-X.
Molla, A., & Licker, P. S. (2005). E-Commerce adoption in developing countries: a model and instrument. Information & management, 42(6), 877-899.
Morgan, A., Colebourne, D., & Thomas, B. (2006). The development of ICT advisors for SME businesses: An innovative approach. Technovation, 26(8), 980–987. doi:10.1016/j.technovation.2005.09.001.
Morteza, G., Daniel, A.-A., & Jose, B.-A. (2011). Adoption of e-commerce applications in SMEs. Industrial Management & Data Systems, 111(8), 1238-1269. doi: 10.1108/02635571111170785
Nguyen, ThuyUyen H. and Teresa S. Waring. (2013). “The adoption of customer relationship management (CRM) technology in SMEs: an empirical study.” Journal of Small Business and Enterprise Development 20: 824-848.
Nurhadi, Nimran, U., Syafi’ie Idrus, M. & Utami, H.N. (2015). Antecedents of e-commerce use in the hospitality industry: An empirical study in Indonesia. European Journal of Business and Management, 7(11):1-10.
Oh, J., Fiorito, S. Cho, S., Hofacker, H.C.F. (2008). Effects of design factors on store image and expectation of merchandise quality in web-based stores, Journal of Retailing and Consumer Services 15 (4), pp. 237–249.
Pires, G.D., Aisbett, J. (2001). A dual Marketing and Informational Perspective to E- Commerce Adoption. The Newcastle University Research Publications.
Porter, Michael. (2001). Strategy and the Internet. Harvard business review. 79. 62-78, 164
Ramdani, B., Chevers, D., & Williams, D. A. (2013). SMEs' adoption of enterprise applications: A technology-organisation-environment model. Journal of Small Business and Enterprise Development, 20(4), 735.
Riemenschneider, C. K., Harrison, D. a., & Mykytyn, P. P. (2003). Understanding it adoption decisions in small business: integrating current theories. Information & Management, 40(4), 269–285. doi:10.1016/S0378-7206(02)00010-1.
Salwani, M., Marthandan, G., Daud Norzaidi, M. and Choy Chong, S. (2009). "E‐commerce usage and business performance in the Malaysian tourism sector: empirical analysis", Information Management & Computer Security, Vol. 17 No. 2, pp. 166-185. https://doi.org/10.1108/09685220910964027.
Sila, I. (2013). Factors affecting the adoption of B2B e-commerce technologies. Electronic Commerce Research, 13(2), 199-236. doi: 10.1007/s10660-013-9110-7.
Srinivasan, S., Anderson, R., and Ponnavolu, K. (2002). Customer loyalty in e-commerce: an exploration of its antecedents and consequences. Journal of Retailing, 78(1):41–50, March. doi:10.1016/S0022-4359(01)00065-3.
Wanjau, K., Macharia, N.R. & Ayodo, E.M.A. (2012). Factors affecting adoption of electronic commerce among small-medium enterprises in Kenya: Survey of tour and travel firms in Nairobi. International Journal of Business Humanities and Technology, 2(4):76-91.
Zhang, M., Jansen, B.J., & Chowdhury, A. (2017). Influence of business engagement in online word-of-mouth communication on twitter: A path analysis. Electronic markets: The International Journal on Networked Business, 21(3), 161-175.
Zhu, K. (2004). The complementarity of information technology infrastructure and e-commerce capability: A resource-based assessment of their business value. Journal of Management Information Systems, 2(1), 167-202,
State Statistical Office of North Macedonia, (2020). Structural Business Statistics [online] available at: https://www.stat.gov.mk/pdf/2022/6.1.22.30_mk.pdf
State Statistical Office of North Macedonia, (2020). Structural Business Statistics [online] available at: https://www.stat.gov.mk/pdf/2022/3.1.22.08_mk.pdf