Identify and Ranking Affecting Factors on Capabilities of Adoption Electronic Commerce. (Case Study Companies of Exporting Goods)

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1 Identify and Ranking Affecting Factors on Capabilities of Adoption Electronic Commerce (Case Study Companies of Exporting Goods) Mohammad Hasan GholiZadeh Department of Business Management, Guilan University, Guilan, Iran Shahram Gilaninia Department of Industrial Management, Islamic Azad University, Rasht Branch, Rasht, Iran Sina Faraj Poor M.A. of Business Management, Islamic Azad University Rasht Branch, Rasht, Iran (Corresponding Author) Abstract Development of information and communication technology in the recent two decades and expanding its applications in various areas of economic and social have been caused formation of a new chapter from relations between individuals, institutions, corporations and governments. One of the most important opportunities exist to trade facilitate and increase competition in the world, is the use of modern information technology and communication. E- commerce as the main product and born out to this new technology could be provided a good opportunity for countries in domestic and international exchanges. New concepts are emerging in the literature of economics and business. Traditional methods of commerce and business are under review. In light of this change jobs and new businesses are in forming. A number was evaluated mentioned developments in information and communication technology as the biggest technological revolution since the industrial revolution, and number of other to refer to as the New Economy and the Digital Economy. Thus in today's business world, having a common language with others is essential for the survival of business and define this common language as standards for electronic commerce. Keyword : Information and Communication Technology (ICT), E- Commerce, Small and Medium Enterprises (SMEs), Organizational Factors, Environmental Factors, Technological Factors. Introduction In the third millennium, the nature of international business and trade has entered a new paradigm, and resulted in the change contexts of international trade and internal according to the requirements of this paradigm. E- COPY RIGHT 2013 Institute of Interdisciplinary Business Research 742

2 commerce in cyberspace new age has become to most effective way to exchange and trade and shows scopes of their impact as widespread in entire support chains and activities. The issue has revolutionized sectors of bottleneck in the logistics and transport such as ports. Ways to plan for the development of e-commerce and also explain the steps required to change in part of maritime transport and port of country comparative study of the patterns and the world's top ports and examine how e-commerce links with ports also status programs and measures taken in this regard. (Shir Ozhan 2007) E-commerce is one of the most important events present century that can be this through perform barters commercial and banking and other agents to form network which has many advantages. (Gilaninia 2011) The issue expression of research In the present one of the most important opportunities exist for facilitate trade and increase competition in the world, is the use of modern information technology and communication. In fact, one of the necessity in today's turbulent environment has a major role is concept of ecommerce. In today's world, information and communication technology (ICT) and its applications leads to significant changes in the processes of economic, social and cultural so that some obsolete prior conventional procedures and replaced with customary practices of the third millennium or so-called virtual. Also export is not exception to this issue. E-commerce and solutions related to e-business is cause facilitate and speed up the export process (Afzaal 2006). E-commerce will change way businesses conduct and thereby is cause transforming traditional markets to newer forms. In this regard e-commerce as one of the most important tools puts indicators in most countries such as increasing the efficiency of trade, trade liberalization, information transparency and relations development of scientific, cultural, trade in international level for acquisition competitive advantage and increase exports, this tool actually has been range competitive advantages available leading countries. (Hashemi 2010) E-commerce is cause further globalization of trade, removing the constraints of time and place, create jobs, reducing inflation, extend market coverage, reduced sources prices for purchasing, increase sales percent, raise productivity, significant decline in trading costs, providing activities for small and medium enterprises. (MohammadZadeh et al 2010) COPY RIGHT 2013 Institute of Interdisciplinary Business Research 743

3 Previous research 1. The Exploratory Study of Marketing Capabilities and Export Success : an Investigation of Thai s SMEs Phadett Tooksoon, Supee Sukitniyakorn, Jakkarat Thammajit, (2012) This research examines the role of the relationship between marketing capability and export success. Data was collected by mailing questionnaire to small and medium enterprise (SMEs) in Thailand and a total of 89 qualified observations were collected. The marketing apabilities can be classified into four dimensions namely product capability, distribution capability, price capability, and promotion capability. Among the four dimensions of marketing capability, only price capability and promotion capability are significantly and positively related to export success while product capability has a negative significance with export success. On the other hand, distribution capability is not significantly associated with export success in Thai s SMEs. The results appear to concur with some of the previous studies conducted in other developing nations. 2. Aligning Internet Capabilities in Small and Medium-sized Enterprises (SMEs): An Exploratory Survey Rosli Mohamad, Professor Dr. Noor Azizi Ismail (2011) Integrating Internet-based solutions (e-business) potentially enhance firm s efficiency and effectiveness with no exception to Small and Medium-sized Enterprises (SMEs). Nonetheless, such applications promise greater benefits if it is appropriately aligned to support most strategic firm s functions. Despite extensive research on e-business practice amongst this sector, there have been limited works to investigate the extent of Internet alignment across various business functions. Therefore, this study was conducted to explore the issue concerned. A survey was carried out with 54 firms to obtain their perception on the current state of Internet alignment across three major business functions, namely salesrelated, procurement-related, and internal operations. The results ascertained that alignment inconsistencies do exist at different business functions. Cluster analysis further revealed two distinct firm profiles based on their alignment pattern. In conclusion, the study suggests that SMEs set different priority over e-business use in support of their firms operation. 3. Impact of Technological Capability on the Export Performance of SMEs in Thailand Chantanaphant, Jirayuth, Md. Noor Un Nabi, Utz Dornberger, (2011) Technological capability (TC) is widely regarded as source of growth and wealth for the nations and the firms. Researches on the role of technology on COPY RIGHT 2013 Institute of Interdisciplinary Business Research 744

4 economic development have emphasized two main issues. Firstly, they paid attention to the emerging market countries adapting the imported technologies have become a decisive factor in their ability to catch up. These studies emphasized on the industry and country phenomena, where the firmlevel phenomena have not much emphasized. Secondly, researches on the relationship between TC of the emerging market countries small and medium-sized enterprises (SMEs) and their export performance are required to generate better understanding 4. Use and Business Impacts of Internet Technologies and e-business Solutions among Small and Medium-sized Enterprises (SMEs) in Atlantic Canada Charles H. Davis, Ph.D. Yi-Jing (Carinna) Lin, M.B.A. Florin Vladica, M.B.A. (2006) This paper describes patterns of use of Internet technologies and e-business solutions among over 700 SMEs in Atlantic Canada in It also describes patterns of facilitators and outcomes of e-business use. Atlantic SMEs have found the most value in e-business in customerfacing performance improvements in the regional market, and the least value in e-business as a facilator of external market expansion. The smallest firms are the most dependent on Internet sales. Between one quarter and one third of SMEs express interest in externally provided support services, especially illustrative examples, recommendations, and personalized advice Theoretical Research E-Commerce : In a simple definition can expressed e-commerce as conduct any business activities through the Internet (Mousavi 2007). E-commerce is new solutions and methods of business as electronic with use of networks and Internet that trade process is done in the context. In fact e-commerce is transforming available relations in the business world and connecting companies with customers and create new business communities. (Gilaninia 2012) Small and Medium Enterprises (SMEs) : Development SMEs is key to economic development in the next decade. Intensity of global competition, increasing uncertainty and also growing demand for diverse products has led be increased attention to this industries. However, large industry in order to have advantages arising from effect scale mass, production range, organization experience and effect, still are considered economic policies, but the advantages small and medium industries due to transport effects, COPY RIGHT 2013 Institute of Interdisciplinary Business Research 745

5 market size, effectiveness of choice and control, in often goods production is made to first choice. (Jouni et al 2010) Organizational Factors : Ling introduced organizational factors with factors such as organization size, top management support, organizational readiness, organizational structure and organization culture as influencing factors in the decision makings and application of e-commerce. Generally, organizational factors are presented as factors that have organizational originated. Factors organization includes organization preparation, product variety and reflect the company's technological capabilities or level of knowledge. (Liane 2009) Environmental Factors : Environmental factors divided into two categories, direct and indirect. Direct environmental factors include business, competitors, physical distribution centers and customers and also indirect environmental factors include factors economic, social, cultural, political, legal, demographic. (Munib et al 2010) Technological Factors. : This factors involved to technical component, that are component factors was subset of technological techniques. For this reason they are in the group of factors such as applications hardware and software. Also includes aspects related to telecommunications infrastructure, extensive facilities of software and hardware, security in telecommunications networks, expertise technical knowledge, customers knowledge towards e-commerce on deployment of e-commerce in industry.( Raphael 2008) COPY RIGHT 2013 Institute of Interdisciplinary Business Research 746

6 Model of Research Figure 1 : Model of Effective Factors on Capabilities Application Ecommerce SMEs COPY RIGHT 2013 Institute of Interdisciplinary Business Research 747

7 Figure 2 : Model of Harchy Analytic Process to Select the Most Effective on Capabilities Application Ecommerce SMEs The research hypotheses The first main hypothesis : Internal factors are affect on capability application e-commerce in SMEs The first sub-hypothesis : Organizational self-efficacy is affect on capability The second sub-hypothesis : Organizational flexibility is affect on capability The third sub-hypothesis : Organizational interest is affect on capability The fourth sub-hypothesis : Continuous transformation is affect on capability The second main hypothesis : Environmental factors are affect on capability application e-commerce in SMEs The fifth sub-hypothesis : Competitive dynamics is affect on capability The sixth sub-hypothesis : Customer dynamics is affect on capability The third main hypothesis : Technological factors are affect on capability application e-commerce in SMEs The seventh sub-hypothesis : Benefits of E-Commerce is affect on capability COPY RIGHT 2013 Institute of Interdisciplinary Business Research 748

8 The eighth sub-hypothesis : Perceived risks is affect on capability The ninth sub-hypothesis : Perceived compatibility is affect on capability The tenth sub-hypothesis : Perceived complexity is affect on capability The eleventh sub-hypothesis : Testableis affect on capability application e- commerce in SMEs of goods Exporting The twelfth sub-hypothesis : Visibility is affect on capability application e- commerce in SMEs of goods Exporting Research Methodology The present study In terms of the nature and purpose is applied, and in terms of data collection and information is descriptive survey. The present research population consists of exporters SME in the Anzali that in its commercial activity use of e-commerce tools. Its number is 67. Sampling method in this study is as random sampling. Data collection method in the present study is field and library. Also for primary data collected in field studies are used questionnaires and interviews. In this study was used descriptive statistics and also for hypothesis testing was used single-sample T-Student test. Validated of Questionnaire In this study, to calculate amount of reliability data gathering tool was used Cronbach alpha that is 0.91 Test results The first main hypothesis : Internal factors are affect on capability application e-commerce in SMEs Results of One-sample t-test on the impact of internal factors in capability application e-commerce in SMEs is as follows : Index Internal factors No Degrees of freedom calculated average Standard deviation Calculated t COPY RIGHT 2013 Institute of Interdisciplinary Business Research 749 Sig. mean difference lower limit upper limit Table 1 : Results of T-test

9 The first sub-hypothesis : Organizational self-efficacy is affect on capability The second sub-hypothesis : Organizational flexibility is affect on capability The third sub-hypothesis : Organizational interest is affect on capability The fourth sub-hypothesis : Continuous transformation is affect on capability The second main hypothesis : Environmental factors are affect on capability application e-commerce in SMEs COPY RIGHT 2013 Institute of Interdisciplinary Business Research 750

10 Results of one-sample t-test on the impact of Environment factors in capability application e-commerce in SMEs is as follows : Index No Degrees of freedom calculated average Standard deviation Calculated t Sig. mean difference lower limit upper limit Environment factors Table 2 : Results of T-test The fifth sub-hypothesis : Competitive dynamics is affect on capability The sixth sub-hypothesis : Customer dynamics is affect on capability The third main hypothesis : Technological factors are affect on capability application e-commerce in SMEs COPY RIGHT 2013 Institute of Interdisciplinary Business Research 751

11 Results of one-sample t-test on the impact of technological factors in capability application e-commerce in SMEs is as follows : Index No Degrees of freedom calculated average Standard deviation Calculated t Sig. mean difference lower limit upper limit Technological factors Table 3 : Results of T-test The seventh sub-hypothesis : Benefits of E-Commerce is affect on capability The eighth sub-hypothesis : Perceived risks is affect on capability The ninth sub-hypothesis : Perceived compatibility is affect on capability COPY RIGHT 2013 Institute of Interdisciplinary Business Research 752

12 The tenth sub-hypothesis : Perceived complexity is affect on capability The eleventh sub-hypothesis : Testableis affect on capability application e- commerce in SMEs of goods Exporting The twelfth sub-hypothesis : Visibility is affect on capability application e- commerce in SMEs of goods Exporting Conclusions According to the results of statistical test carried out and Due to the indicate a significant umber equal to 0, that is less than the 0.05 level So all the main and secondary hypotheses confirmed at %95 Confidence level. Also was determined using AHP techniques factor most effective on capability application e-commerce in SMEs is organizational factors and then there are the technological factors. Also environmental factors has lowest impact. Suggestions Based on the results of the first main hypothesis and sub-hypotheses from first to fourth, it is suggested that for export performance improve of organization should do careful and codified planning in the field of enjoyment impact of internal factors in establishment and development of e-commerce. Based on the results of the second main hypothesis and sub-hypotheses fifth and sixth, it is suggested that for export performance improve of organization COPY RIGHT 2013 Institute of Interdisciplinary Business Research 753

13 should do careful and codified planning in the field of enjoyment impact of environment factors in establishment and development of e-commerce. Based on the results of the third main hypothesis and sub-hypotheses from seventh to twelfth, it is suggested that for export performance improve of organization should do careful and codified planning in the field of enjoyment impact of technological factors in establishment and development of e- commerce. The results of the ranking Factors affecting in application e-commerce in SMEs By using AHP analytical hierarchy process shows among the factors, organizational tend factor has to greatest impact, thus it is recommended that necessary attention to these factors. Suggestions for future research Patterns design of affecting factors on application of e-customs. Evaluation ecommerce position in performance of successful export. Evaluate the role influencing factors in adoption of e-commerce on exports non-oil goods and services. Limitations of Research Lack of time for data collection and data processing Lack of cooperation and coordination some of the companies studied Lack of internal similar research in the field research subject because new topic COPY RIGHT 2013 Institute of Interdisciplinary Business Research 754

14 References Afzaal H. Seyal, (2006) Predictive Indicators of Electronic Commerce Adoption in Regional Small and Medium Enterprises, This chapter appears in the book, Global Electronic Business Research: Opportunities and Directions edited by Nabeel Al-Qirim, Idea Group Inc. Chantanaphant, Jirayuth, Md. Noor Un Nabi, Utz Dornberger mpact of Technological Capability on the Export Performance of SMEs in Thailand Charles H. Davis, Ph.D. Yi-Jing (Carinna) Lin, M.B.A. Florin Vladica, M.B.A Use and Business Impacts of Internet Technologies and e-business Solutions among Small and Medium-sized Enterprises (SMEs) in Atlantic Canada Gilaninia, Shahram Introduction to Industrial Marketing. Volume I. publisher Kadousan. Rasht Gilaninia, Shahram IMPACT OF SUPPLY CHAIN DIMENSIONS ON CUSTOMER SATISFACTION. Kuwait Chapter of Arabian Journal of Business and Management Review. First year. No. 5. Hashemi, Majid Effect of e-commerce on amount of export of oil products. Journal of Bazargani. No. 54. Pages of Jouni Kauremaa, Juha-MiikkaNurmilaakso, (2010), E-business enabled operational linkages:the role of RosettaNet in integrating the telecommunication ssupply chain, Int.J. Production Economics 127(2010) Liane Voerman, (2009), The Export Performance of European SMEs, Offsetdrukkerij Ridderprint B.V., Ridderkerk MohammadZadeh, Hasan et al Investigate the affecting factors on intention to use e-commerce in system contributing companies, Evaluation Commerce. No. 42. Pages of Mousavi, Sedigheh Electronic Payments Munib Karavdic, Gary Gregory, (2010), Integrating e-commerce into existing export marketing theories: A contingency model, University of New South Wales, Australia, 5(1): Phadett Tooksoon, Supee Sukitniyakorn, Jakkarat Thammajit The Exploratory Study of Marketing Capabilities and Export Success : an Investigation of Thai s SMEs COPY RIGHT 2013 Institute of Interdisciplinary Business Research 755

15 Raphael, Amit VALUE CREATION IN E-BUSINESS, Strategic Management Journal, Strat. Mgmt. J., 22: Rosli Mohamad, Professor Dr. Noor Azizi Ismail Aligning Internet Capabilities in Small and Medium-sized Enterprises (SMEs): An Exploratory Survey Shir Ozhan, Masoud Case Study E-Commerce in Hong Kong Port. COPY RIGHT 2013 Institute of Interdisciplinary Business Research 756