Procedia - Social and Behavioral Sciences 109 ( 2014 )

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1 Available online at ScienceDirect Procedia - Social and Behavioral Sciences 109 ( 2014 ) nd World Conference On Business, Economics And Management WCBEM 2013 Investigation the effect of Internet Technology on Performance of services organizations with e-commerce orientations Sadegh Feizollahi a, Alireza Shirmohammadi b, Zahra Safari Kahreh c, Mohammad Safari Kaherh d * a Department of Management, Islamic Azad University, Mehran Branch, P.O.Box: , Ilam, Iran b Department of Industrial Management, Payam Noor University, P.O.Box: , Tehran, Iran c Department of Management, Bakhtar Institution of Higher Education of Ilam, P.O.Box: , Ilam, Iran d Department of Business Administration, Faculty of Management, University of Tehran, P.O.Box: , Tehran, Iran Abstract In this research, two dimensions of internet technology and e-commerce orientations have been considered. Based on the measuring these variables, the performance of each organization especially banks in the sales area has been evaluated. Also, the affectability coefficient of these two factors on the banks performance has been studied. The aim of current study is to investigate the casual relationships between internet technology with e-commerce orientations and organizations performance. Therefore the research method of this study is casual-correlation and also based on the study s objective is the applied research. Research population of this study is chief and assistant managers of all the Ilam province banks that are equal with 394. All these managers are users of internet technology. Sampling method is stratified random that based on the Cochran formula are calculates as 150. Required data has been gathered by means of a standard questionnaire. For data analysis the Structural Equation Modeling (SEM) using LISREL software has been used. Data analysis shows that there are positive and meaningful relationships between internet technology and familiarity of customers with the e-commerce and also e-commerce experiences for organizational internal processes with organization s performance. Also there are positive and meaningful relationships between familiarity of customers with the e-commerce and organization s performance; but there are negative and meaningful relationships between e- commerce experiences for organizational internal processes and organization s performance The Authors. Published by Elsevier Ltd. Selection and peer review under responsibility of Organizing Committee of BEM Keywords: internet technology, e-commerce, organizational performance, structural equations modeling; 1. Introduction With development of new information and communication technologies (ICT), existing organizations in the different industries to achieve a competitive advantage needs to use these technologies. Organizations should withdraw the old methods and move towards the new technologies that based on the World Wide Web context (Parandeh, 2003). Therefore, investigation the effects of internet technology on the services organizations performance with the e- commerce orientations have a great importance (Ruikar and carrillo, 2005). The increasing volume of e-commerce in the world, using it by the economic firms and gradual acceptation of it from consumers demonstrate potential advantages of e-commerce in the economic and commercial context. Thus, there is no choice to use it in the * Corresponding Author: Mohammad Safari Kahreh. Tel.: address: m.safari@ut.ac.ir The Authors. Published by Elsevier Ltd. Selection and peer review under responsibility of Organizing Committee of BEM doi: /j.sbspro

2 606 Sadegh Feizollahi et al. / Procedia - Social and Behavioral Sciences 109 ( 2014 ) economic and commercial activities. One of the important pre-requisites for e-commerce implementation is access to the Internet technologies (Saeedi, 2003). Therefore, the main research questions of this study are: To what extent services corporations and organizations such as banks are familiar with the Internet technologies (including websites, , weblog, etc.) and to what extent they accepted these conceptions and are acting according to it? For achieving this purpose based on the research analytical model, two dimensions of Internet technology and e-commerce orientations as independent and mediator variable have been identified respectively. By measuring each of these variables, the extent of organizational performance such as banks in the area of electronic sales will be evaluated. On the other hand, because of different role of these two factors (internet technologies and e-commerce orientations) the affectability coefficient of these factors on the banks performance will be investigated. 2. Literature Review 2.1. Internet Technology Internet is a set of computers that links together with telephone lines, fiber optics, Satellite lines and or other transform environment. They have not any central management or Ownership. Internet is a base for electronic marketing expansion especial in the developed countries. The Internet is an information technology (IT) that diffuses at exponential rates among the business-to-business organizations (Avlonitis and Karayanni, 2000). The Internet should be viewed as a channel for distribution, trade, and communication, and it is an efficient medium for information access, organization, and communication. In addition, it helps to store data in an inexpensive way, collect information rapidly and cheaply, provide information interactively in accordance with consumer needs, and, in comparison with printed marketing materials, it offers a greater sensory experience and can serve as a medium for trade (Peterson et al., 1997). The Internet s core advantage lies in its great capacity of fast, efficient, integrated, and interactive exchange of information. Thus, the Internet facilitates the information exchanges between organizations, concerning issues such as discovery of new customer needs, trends of the local and global markets, competitive moves, joint development of products, joint selling activities, etc (Avlonitis and Karayanni, 2000) E-commerce Turban et al. (1999) defined e-commerce as the trade and exchange of products, services, or information through the Internet. Zwass (1996) pointed out that e-commerce means to share business information, maintain business relationships, and run a business through the Internet. This means that ecommerce already applies to other kinds of business activities and is no longer limited to product transactions. Currently, ecommerce applications can be split into three categories: (1) Business to Business (B2B); (2) Business to Consumer (B2C); (3) Consumer to Consumer (C2C) (Kalakota and Whinston, 1997). There are different models of e-commerce that describe the basic relationships between different players of the e-commerce context. Basically, nine main relationships and models of e0commerce have been identified in the literature. Table 1 shows the types of e-commerce models. Table 1. Different models of e-commerce C (Customer) B (Business) G (Government) C (Customer) C2C C2B C2G B (Business) B2C B2B B2G G (Government) G2C G2B G2G

3 Sadegh Feizollahi et al. / Procedia - Social and Behavioral Sciences 109 ( 2014 ) Ecommerce requires a business strategy focused on the optimum relationship between enterprise and enterprise and between enterprise and consumer. E-commerce can be viewed as combining innovative approaches, virtual applications, and Internet business operations into a single, revolutionary, enterprise, solution (Tsai and Cheng, 2012) Performance appraisal in the services organizations A performance appraisal (PA) or performance evaluation is a systematic and periodic process that assesses an individual employee s job performance and productivity in relation to certain pre-established criteria and organizational objectives (Manasa and Reddy, 2009). Other aspects of individual employees are considered as well, such as organizational citizenship behavior (Muchinsky, 2006), accomplishments, potential for future improvement, strengths and weaknesses, etc (Broady and Steel, 2002). The style of performance appraisal includes the performance aspects and information sources which a superior considers, as well as the flexibility or rigidness with which the superior evaluates subordinates on certain performance criteria (see, e.g. Hopwood, 1974, pp ). Hopwood (1972) has laid the foundations for a number of performance evaluation styles by conducting research in the profit sector. There has been considerable research in which the behavioral effects of the different styles have been studied; sometimes the definitions of the styles have been altered slightly (see, e.g. Briers and Hirst, 1990; Otley and Fakiolas, 2000; Vagneur and Peiperl, 2000). 3. Research conceptual framework In this research, Research conceptual framework is based on "SOTO-ACOSTA" model that evaluate the effect of Internet technology on firms performance. This model regarding three elements as key required elements of research. Figure 1 shows research conceptual framework. Internet technology Firm performance E-commerce orientations Customer's ability to using internet and web site in business affairs. Employee's ability and internal performance to using internet and web site in business affairs Figure 1. The Research Conceptual Framework 4. Research Hypotheses H1: There is positive meaningful relationship between Internet technology and e-commerce familiarity for customer. H2: There is positive meaningful relationship between Internet technology and e-commerce familiarity for internal organizational performance. H3: There is positive meaningful relationship between applying Internet technology and in business affairs and organizational performance. H4: There is positive meaningful relationship between e-commerce familiarity for customer and organizational performance. H5: There is positive meaningful relationship between e-commerce familiarity for internal organizational performance and organizational performance.

4 608 Sadegh Feizollahi et al. / Procedia - Social and Behavioral Sciences 109 ( 2014 ) Methodology This study s statistical population is managers and assistant of the entire bank branch of Ilam province as many as 394, that all these personals are using the Internet in their area of work, which regarding to Internet as an opportunity to provide more services to their customers. Statistical sample was chosen based on stratified random sampling that sample size based on Cochran's formula is equal 150. In this study has been used Standardized Assessment Questionnaire for examining hypothesis that content of this questionnaire has been completed based on research hypothesis and Data collected from the research literature review. To examine the validity of the questionnaire was used from standard and reliable resource and after the revision, among statistical population was distributed. In this study, to examine the reliability has been distributed the questionnaires number of 150 among is managers and assistant of the bank branch of Ilam province number of 150 personals. Then by using SPSS software has gained Cronbach's alpha value that is equal 91%. In this study regarding to value can be said, acceptability questionnaire and study measuring considered questions. Thus, this questionnaire has acceptable reliability. 6. Analysis In this study regarding to usage structural equation modeling, in this study, initially, after drawing by Path diagram program by using PRELIS program, considered indexes were calculated for Model fitness. Then in the in structural model hypothesis have been examined with achieving measuring model using by β coefficient and t-test. For measuring the fitness of data can be used Kay Square ( ) and indices of fitness (GFI). For considered model, test value is equal , these shows that in the statistical population, considered model is reliable. Other indicator is the following table: Table 2. Fitness indices of the Research Model Indicators Values RMSEA NFI 0.85 AGFI 0.65 NNFI 0.86 Among the cited indicators, GFI and RMSEA indicators have more importance. Since RMSEA index value is lower than 0.05, also GFI index value is approximately equal 1, therefore this current study model has a good fitness. 2 and 3 figures respectively shows β and t-test values for considered model (Kelloway, 1995) E-commerce familiarity for customers Internet technology Organization performance E-commerce familiarity for organizational Figure 2. Standardized solutions of structural research model

5 Sadegh Feizollahi et al. / Procedia - Social and Behavioral Sciences 109 ( 2014 ) Conclusion Using the Internet in commercial banks is essential and important, nevertheless for active these pourers, banking system is confronting two basic challenges. First, with Internet banking orientation many of old methods should be encompassed in electronic system framework. It is necessary to teach all of banks employees an appropriate education until employees adopted and aliened with new technology. The second challenge is associated with adaptation of banking tools and methods with people's culture, mentality and knowledge. In fact, Internet banking has serious needs of culture to attract customers. In the other hand, the society should have a culture for technology implementation and familiar with its usage method. One of the important prerequisites for e-commerce implementation is accessibility to Internet that proper and optimum use of it by personnel led to electronic business and commerce. Surly, for achieve for this purpose banks and other financial institutions should Equipped and developed associated electronic systems including ATM, POS, websites, integrated software. Regarding to these systems and required infrastructures the using possibility will be prepared for public in the society so that with increasing POS and ATM systems many corporations will able to integrated with their suppliers and providers. References A.K Dyanjy Babaji and Nak, (1999). the electronic exchange of business information to translate Iraj B. Mojtahedi, Research Institute, Persian date Bahman. Amit, R., Zoot, C., (2001). Value creation in e-business. Strategic management journal 22, Avlonitis, George J and Karayanni, Despina A. (2000). The Impact of Internet use on Business-to-Business Marketing. Industrial Marketing Management,Vol. 29, pp: Bollen, k,a, (1989), structural equation with latent variable. New York: willy- inters science publication. Broady-Preston, J. & Steel, L. (2002). Employees, customers, and internal marketing strategies in LIS. Library Management, 23, Dale, S. Beach, personnel: the management of people at work (New York) MacMillan publishing company P.313 Devinney T.M, J. R, Pierre, S.Y.George. J, Gerry. (2004). measuring organization performance in management Research: A Synthesis of Measurement challenges and Approach, Australian Graduate school of management, presented in Aomconfrernce. Duffy, G.and B.G. Dale E-Commerce processes: a study of criticality Industrial management and data systems 102(8): Esmailpour Ali, Hassan, (2005). Principles of Marketing, Printing, Tehran, at Knowledge Publications. K. Ruikar, C.J. Anumba, P.M. Carroll (2005). Verict-A ne-readiness assessment application for construction companies. Automation in construction Kalakota, R., Whinston, A.B., Electronic Commerce: A Manager s Guide. Addison-Wesley, Reading, MA. Kotler, F., (2006). Translated into Persian month Bahman lustrous, marketing principles, the seventh printing, publishing, and teaching. Lichtenthala, J. David and Eliaza, Shay. (2003). Internet integration in business marketing tactics. Industrial Marketing Management, 32, Manasa, K. & Reddy, N. (2009). Role of Training in Improving Performance. The IUP Journal of Soft Skills, 3, Mintzberg, H., & Waters, J. A.(1985). Of strategies, deliberate and emergent. Strategic Management Journal, 16(3), Mir Sapasi, N. (2003). Strategic management of human resources and labor relations, the twenty second printing, Tehran, Mir Publishers, Muchinsky, P. M. (2006). Psychology applied to work (8th ed.). Belmont, CA: Thomson Wadsworth. Parandeh, (2000). in e-commerce, printing, publishing, Business Office, Journal of Cooperatives. Perdo Sote-Acosta, Angel. merona-cerdan, (2009), evaluating internet Technologies business effectiveness,telema tice and information, Simco, Greg. (2001). Performance evaluation and the Internet 2 performance initiative. Internet and Higher Education, Vol. 4, pp: Soto Acosta, p.meron-cerdan, A.l, An analysis and comparison of web development between local governments and SMES in Spain International Journal of Electronic Business (2) Soto, p. (2005). Examining e-business impact on firm performance though website analysis. International Journal of E-Business 3(6), Tsai, Yuan-Cheng and Cheng, Yu-Tien. (2012). Analyzing key performance indicators (KPIs) for E-commerce and Internet marketing of elderly products: A review. Archives of Gerontology and Geriatrics,V0L. 55, PP: Turban, E., Lee, J., King, D., Chung, H.M., Electronic Commerce: A Managerial Perspective. Prentice-Hall, New Jersey, USA. Zhu k.,kraemer k.l,(2002),e-commerce metrics for Net-Enhonced organization :Assessing the value of E-commerce to firm performance in the manufacturing sector, information systems Research,13(31),pp Zwass, V., Electronic commerce: structures and issues. Int. J. Electron. Commerce 1, 3 23.