Marketing Supply Chain Using B2B Buy-Side E-Commerce Systems: Does Adoption Impact Financial Performance?

Academy of Marketing Studies Journal, 2012

Mays Business School Research Paper No. 2113680

33 Pages Posted: 20 Jul 2012

See all articles by Jap Efendi

Jap Efendi

University of Texas at Arlington

Michael Kinney

Texas A&M University - Department of Accounting

Katherine Taken Smith

Texas A&M University-Corpus Christi-College of Business

Murphy Smith

Texas A&M University-Corpus Christi-Department of Accounting

Date Written: 2012

Abstract

Research suggests that new information technologies can improve the functionality of business processes, leading to improved firm profitability. However, new technologies are not equal in their contributions to a company’s bottom line. Further, there is some debate as to whether early adopters of new technology benefit over later adopters. This study examines the financial performance of firms that modify their marketing supply chain by adopting business-to-business (B2B) buy-side e-commerce systems. Analyses show that early adopters outperform their non-adopting industry peers in the post-adoption period. Superior performance in adopters' return on assets (ROA) is driven by increases in profit margins rather than by improved asset turnover. The results are consistent with the claim that B2B buy-side improves company performance through lower purchasing and administrative costs. Early adopters of B2B buy-side systems received a competitive advantage over industry counterparts due to greater market transparency and better transactional efficiency.

Keywords: Supply chain, marketing, B2B, e-commerce, operating performance

JEL Classification: D21, L60, L70, M11, M30, O32, O33

Suggested Citation

Efendi, Jap and Kinney, Michael R. and Smith, Katherine Taken and Smith, Murphy, Marketing Supply Chain Using B2B Buy-Side E-Commerce Systems: Does Adoption Impact Financial Performance? (2012). Academy of Marketing Studies Journal, 2012; Mays Business School Research Paper No. 2113680. Available at SSRN: https://ssrn.com/abstract=2113680

Jap Efendi

University of Texas at Arlington ( email )

415 S West St Apt no 205
Arlington, TX 76019
United States

Michael R. Kinney

Texas A&M University - Department of Accounting ( email )

430 Wehner
College Station, TX 77843-4353
United States
979-862-2078 (Phone)
979-845-0028 (Fax)

Katherine Taken Smith

Texas A&M University-Corpus Christi-College of Business ( email )

6300 Ocean Drive
Corpus Christi, TX 78412
United States

Murphy Smith (Contact Author)

Texas A&M University-Corpus Christi-Department of Accounting ( email )

6300 Ocean Dr
Corpus Christi, TX 78412
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
290
Abstract Views
2,335
rank
103,209
PlumX Metrics