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Article history: The adoption of e-marketing has been associated with an array of potential benefits such as market
Received 27 April 2008 expansion and cost reduction. Nevertheless, the degree of involvement in B2B markets has been patchy, with
Received in revised form 26 February 2009 many organizations not involved in it at all. This article examines the variations in e-marketing adoption
Accepted 10 June 2009
from an organizational orientation perspective and introduces empirical measurement with the ‘Electronic
Available online 18 October 2009
Marketing Orientation’ (EMO) construct. Based upon a web-survey of senior managers and marketing/sales
Keywords:
directors the findings suggest that EMO is made up of both philosophical and behavioral components. By
E-marketing conceptualizing EMO and facilitating its measurement, marketers will be able to benchmark their activities
Technological innovation towards adoption, evaluate their efforts and be able to assess where to focus their resources to improve their
Organizational orientation e-marketing processes. A number of specific recommendations are made for companies in relation to the
Internet successful adoption of e-marketing.
© 2009 Elsevier Inc. All rights reserved.
Berthon et al. (2008) have noted in this journal that the role of Some researchers limit the definition of e-marketing to the
electronic networks in B2B relationships has been growing exponen- Internet (e.g. Hooley, Saunders, & Piercy, 2004), while others include
tially. However, despite the widely accepted benefits of e-marketing, several technologies such as Electronic Point of Sale (EPOS) and
companies continue to embrace it to varying degrees. For example, computerized customer database (e.g. Strauss, El-ansary, & Frost,
the vast majority of organizations in the European Union have 2006). However, most of the definitions share the same core which is
Internet access and use e-mails, nevertheless, only 26% of organiza- that e-marketing is accomplished or facilitated via electronic
tions in the steel and chemical industry accept orders from customers information and communication technologies. The Internet is cur-
online (European e-Business Watch, 2008). These variations may rently the main enabler of e-marketing; it represents the major focus
partly be explained by the degree to which organizations are e- of this article.
marketing orientated. In general, two main sets of benefits are associated with e-marketing
What is an e-marketing orientation (hereafter EMO)? This article adoption. The first is related to raising profitability through increasing
attempts to answer this question through the development of the EMO revenues or cutting costs and the second is related to improving
construct and the empirical examination of its components. In marketing functions. For example, e-CRM solutions may help in
addition, EMO's ability to predict e-marketing adoption levels will be increasing customer satisfaction by providing new and innovative
explored. The paper begins by discussing the definition of e-marketing ways of providing services.
and e-marketing adoption. The following sections examine the When it comes to understanding levels of e-marketing adoption,
innovation perspective and the development of EMO. A diagrammatic Chaffey et al. (2006) suggest that the different adoption levels can
representation of the theoretical framework adopted in the article can be viewed as stages starting with basic presence (e.g. brochure-
be found in Fig. 1. ware) and ending at advanced level of involvement. Likewise,
Hanson (2000) suggests that a distinction can be made between
three stages: the publishing stage (one way communication), the
database and forms stage (simple interaction including e-com-
merce), and the personalization stage (complex interaction).
Overall, the different e-marketing adoption levels may be seen in
⁎ Corresponding author. Birmingham Business School, Birmingham B15 2TT, UK. Table 1. However, please note that some products do not lend
Tel.: +44 121 414 2542 (work); fax: +44 121 414 7791.
E-mail addresses: ashaltoni@uop.edu.jo (A.M. Shaltoni), d.west@bham.ac.uk
themselves to custom configuration, for instance chemicals and base
(D.C. West). pharmaceuticals need to follow national/international standards as
1
Tel.: +962 777594005; fax: +962 65152902. appropriate.
0019-8501/$ – see front matter © 2009 Elsevier Inc. All rights reserved.
doi:10.1016/j.indmarman.2009.06.011
1098 A.M. Shaltoni, D.C. West / Industrial Marketing Management 39 (2010) 1097–1102
Regardless of level, e-marketing occurs as a result of new devices Another popular theory, the Technology Acceptance Model (TAM)
or systems and it causes changes in most marketing functions. (Davis, Bagozzi, & Warshaw, 1989), offers a specific adaptation of the
Accordingly, it is sensible to consider e-marketing as primarily an Theory of Reasoned Action (Ajzen & Fishbein, 1980) applied to IT
organizational innovation. Many studies have employed this rationale acceptance. TAM relates to the impact of perceived usefulness and
and used well-established innovation theories as a theoretical ease of use of IT on attitudes that affect the behavioral intentions and
foundation for identifying and classifying the factors that may affect ultimately the behaviors of adopters.
the adoption of e-marketing. This can be seen particularly in the
context of technological innovation (Tornatzky & Fleischer, 1990) and 3. E-marketing orientation (EMO)
the diffusion of innovation (Moore, 2004; Rogers, 1995). An example
of these factors is ‘perceived compatibility’ which reflects the degree The innovation perspective can provide several explanations for
to which e-marketing is perceived to be attuned with the organiza- technology adoption businesses, yet it has been argued that classical
tional culture and existing IT (information technology) infrastructure. innovation theories were synthesized from a body of research that
Table 1
E-marketing adoption levels.
Description Simple extension of the marketing Organizations start conducting marketing Organizations empower themselves by using
communication department. transactions using e-marketing resources. e-marketing strategy to drive corporate strategy.
Example Establishing a static web site to provide Selling products and accepting payments via Allowing customers to configure and order products
products and company information or web sites, online customer service, conducting online according to their specifications.
receiving enquiries via online form. market research on the Internet.
Characteristics Limited interactivity, no e-marketing The interaction is more complex and personalized, High levels of interactivity, clear and solid
strategy, lack of resources committed e-marketing strategy starts to evolve, availability e-marketing strategy, availability of enough
to e-marketing activities. of some financial resources and skilful staff. resources to conduct e-marketing functions.
Note: Dedicated online companies have been omitted as by their nature they are highly involved in e-marketing.
A.M. Shaltoni, D.C. West / Industrial Marketing Management 39 (2010) 1097–1102 1099
focused primarily on simple innovations being adopted autonomously H2b. In EMO, there is a positive link between the degree to which
by individuals (Fichman, 1992). Therefore, these theories apply less decision makers emphasize e-marketing and the implementation
well to more complex business innovations such as the Internet activities.
(Chadwick, Doherty, & Hart, 2002), particularly when the units of
adoption are organizations rather than individuals. The organizational H3. In EMO, there is a positive link between the initiation and
orientation represents a different approach to understanding e- implementation activities.
marketing adoption. Organizations with different orientations vary
in the way they do business. For example, an innovation-oriented 4. Scale development
organization focuses on inventing superior products which might lead
to innovative breakthroughs in the market. By contrast, a customer An explanatory research design was utilized based upon fieldwork
oriented organization focuses on identifying and satisfying the needs at the construct operationalization stage. Following the guidelines of
of its existing customers (Berthon, Hulbert, & Pitt, 1999). Based on this Churchill (1979), the construct domain was specified and initial items
it is to be expected that the organizational orientation perspective can developed or chosen from the literature. Each of the research
provide a rich source for understanding why organizations vary in constructs were measured with multiple items, an experience survey
their adoption of e-marketing. However, despite leading examples of and a pre-testing survey was conducted. As well, factor analysis was
orientation analyses in other fields, surprisingly few studies have used to establish construct validity and regression analysis then
employed the orientation perspective in relation to e-marketing. conducted to establish the criterion/predictive validity.
Fang, Mahajan, and Balasubramanian (2003) found that customer Starting with the literature review, a comprehensive list of
orientation, among other sets of factors, has a positive effect on items was drawn up based upon the literature discussion. An
Internet adoption and other studies that followed a similar path experience survey was then conducted involving three marketing
include Chaston and Mangles (2001) and Jones, Hecker, and Holland academics and two marketing managers who served as a panel of
(2003). judges to evaluate the content/face validity of the items. The five
An exploratory research effort was made by Shaltoni (2006) in judges were asked to appraise each item (on a measurement scale
which the organizational orientation towards e-marketing was from 1 to 5) for its representativeness of the construct and clarity
investigated through interviews with marketing academics and of construction. A consensus among the judges (4 or above) was
practitioners, the results indicated that the orientation towards e- sufficient to admit items into the final item pool which contained
marketing is made up of philosophical and behavioral components. 16 items: the EMO construct was measured by 12 items and in
Building upon the attitudinal perspective of organizational orienta- addition four items to measure the extent of e-marketing adoption
tion (Miles & Gregory, 1995; Narver & Slater, 1990), a philosophical (see Table 2).
component of the orientation towards e-marketing may be identified The proportional reduction in loss (PRL) measure (Rust & Cooil,
by the degree to which decision makers emphasize e-marketing. 1994) was then used to explore the reliability of their judgments on
Behaviors are also vital in shaping e-marketing orientation. specific items. PRL can be viewed as a direct extension of Cronbach's
The behavioral component is akin to the organizational orienta- alpha to data collected via qualitative methods. The PRL measure
tions identified by Kohli and Jaworski (1990) and Deng and Dart generated a result of (.91), which indicated high reliability. Next, two
(1994); it may be viewed as all the activities that lead to high levels of pre-tests were conducted before the main wave of the questionnaires
involvement in e-marketing. Two main stages may be further was sent out. In the first, the questionnaires were hand delivered to a
proposed within the behavioral component of e-marketing orienta- judgment sample (known as a ‘purposive sample’) of ten managers
tion. The initiation stage is when e-marketing ideas or intentions are who were responsible for e-marketing activities in their companies.
converted into formal and planned projects. This includes activities The role of this group was to offer their expert opinions on the nature
such as gathering information about e-marketing from different and structure of the questionnaire. Eight complete and suitable
sources, evaluating the different adoption alternatives, planning for responses were returned. The respondents expressed no difficulties in
the adoption and making the decision to adopt. The Implementation answering the research questions and only minor modifications were
stage follows the initiation and relates to all the activities involved in suggested. However, given that the survey was conducted via the
putting e-marketing into practice, e.g. updating or improving the Web, a need for a second test was deemed necessary to detect and
company Web site and employing qualified staff (please also see avoid any possible problem before the main survey was conducted.
Fig. 1). Organizations who believe in the importance of e-marketing Thus, a second wave was conducted with 35 companies. A
for achieving success will make efforts to continuously improve their personalized e-mail invitation was sent to each respondent and out
e-marketing activities and can be described as having high levels of of the 35 invitations, six complete responses were received and no
EMO and be highly involved in e-marketing. errors or problems were detected. (Please note that neither of these
What directions might these relationships take? According to two pre-tests was included in the response rate or the data produced
Ajzen and Fishbein (1980) and Davis et al. (1989), beliefs and used in the analysis).
attitudes are considered as major determinant of behaviors. There-
fore, a positive relationship is hypothesized between the philo- 5. Research sample
sophical and behavioral components of EMO. Furthermore, based
on the argument that the implementation stage in the innovation Having ascertained the validity and reliability of the scale items, a
process cannot be undertaken until the initiation stage has been self completion online questionnaire was sent out to 850 businesses
completed (Rogers, 1995), a positive relationship is also hypothe- that were randomly selected from the UK Trade and Investment
sized between the initiation and implementation activities of EMO. directory. It was decided to regard the marketing managers as key
In light of the above discussion, the following four hypotheses are informants because Internet related issues that concern marketing
offered: activities are usually decided by them (see for example Lynn, Lipp,
Akgun, & Cortez, 2002) and as an aside, it made thematic sense to
H1. EMO represents a synthesis of philosophical and behavioral conduct an investigation of e-marketing orientation using the web.
components. However, in the cases of small and micro companies (less than 50
employees), general managers or owners were contacted because they
H2a. In EMO, there is a positive link between the degree to which are generally responsible for marketing decisions and e-marketing in
decision makers emphasize e-marketing and the initiation activities. particular.
1100 A.M. Shaltoni, D.C. West / Industrial Marketing Management 39 (2010) 1097–1102
Table 2
EMO.
Philosophical • (PHIL1) In our organization, we believe that it is a strategic necessity to be involved in e-marketing. Developed for this study
component • (PHIL2) In our organization, we tell employees that success depends on the adoption of advanced e-marketing resources. Developed for this study
• (PHIL3) We encourage the development of e-marketing initiatives in our organization. Adapted from Srinivasan, Lilien, and Rangaswamy (2002).
• (PHIL4) We feel that that our organization should be highly involved in e-marketing. Developed for this study
Initiation component • (INI1) In our organization, we follow the developments in e-marketing using several secondary sources (e.g. industry magazines, government statistics
…etc). Adapted from Jaworski and Kohli (1993)
• (INI2) In our organization, we monitor competitors' adoption of e-marketing. Developed for this study
• (INI3) We do in-house research about e-marketing. Adapted from Jaworski and Kohli (1993)
• (INI4) Several meetings are held yearly in our organization to prepare e-marketing plans. Adapted from Jaworski and Kohli (1993)
Implementation • (IMP1) The latest e-marketing technologies (e.g. web applications) are installed in our organization. Developed for this study
component • (IMP2) In our organization, there is adequate technical support for e-marketing implementation. Developed for this study
• (IMP3) In our organization, the implementation of e-marketing is done by employees who have e-marketing knowledge. Adapted from Jaworski and
Kohli (1993)
• (IMP4) The activities of the different departments which are responsible for e-marketing implementation are well coordinated. Adopted from Jaworski
and Kohli (1993)
Extent of E-marketing • We use e-marketing resources (such as web site and e-mail) to communicate with our customers. Adapted from Srinivasan et al. (2002)
adoption • We use e-marketing resources to support our firm's traditional commercial activities (e.g. pricing information, customer service). Adapted from
Srinivasan et al. (2002)
• We use e-marketing resources to conduct commercial transactions (e.g. selling products and accepting payment via web site). Adapted from Srinivasan
et al. (2002)
• We have a computerized customer database that we use to perform marketing activities (e.g. inform customers about new products). Developed for
this study
Several issues were considered in the administration of the web The reliability coefficients of all the scales were met and in many
questionnaire, for example, a welcome screen was used to emphasize cases exceeded the recommended standard of .70 suggested by
the ease of responding and to show respondents how to answer each Nunnally (1978) (see Table 3). With regards to validity, a factor
question. Also, a professional web-survey solution company hosted analysis was used to establish the EMO construct validity and to test
the questionnaire on their server, sending the e-mail invitations, H1. The results revealed the presence of a simple structure, with all
collecting and managing the replies. Out of the 850 e-mail invitations items showing a number of strong loadings on three factors (see
sent in the first two weeks, 139 bounced back2 and 100 responses Table 4). One factor was related to the philosophical component of
were received. In an effort to increase the response rate, a second EMO, while the other two factors were related to the initiation and
e-mailing wave was sent out and the number of responses increased to implementation stages of the behavioral component.
145 in the next two weeks. The response rate of 20% is approximately at Regression analysis was then conducted to establish the criterion/
the same level with previous studies related to the adoption of ICTs predictive validity of EMO and to test Hypotheses 2a, 2b, and 3.3
in general, and e-marketing resources in particular (see for example, Criterion validity can be established through examining a construct
Arnott & Bridgewater, 2002; Beatty, Shim, & Jones, 2001; Fang et al., relationship with a dependent variable which it is supposed to pre-
2003 who achieved rates ranging from 14 to 21%). Overall, the response dict (Deng & Dart, 1994). Here the dependent variable is the extent of
rate achieved in this research was deemed to be satisfactory, especially e-marketing adoption. The result of the regression analysis confirmed
bearing in mind the administration via the Internet. the positive relationship between EMO and the extent of e-marketing
Exploring the existence of non-response bias is always an adoption, which adds further support to the validity of EMO (see
important issue to be addressed. The widely used extrapolation Table 5). With regards to the second and third hypotheses the results
method of successive waves (Armstrong & Overton, 1977), which showed that the components of EMO were positively related to each
assume that subjects who respond less readily are more like non- other. More specifically, the philosophical component of EMO was
respondents, was employed. A Chi-square test was conducted to positively related to initiation (b = .63, p < .001) and implementation
compare early and late respondents on the research variables. The (b = .61, p < .001) (see Table 6). Also, the initiation stage was
results revealed no significant differences (p > .05) between the early positively related to the implementation stage (b = .66, p < .001).
and late respondents suggesting that non-response bias is not a
problem in this study. 7. Discussion
3
Structural Equation Modeling (SEM) was considered for testing the hypothesis.
2
As with mail surveys, undelivered e-mails generally occur because managers However, SEM focuses on the model fit rather than the relationships between the
change workplace along with their e-mail addresses (Zatz, 2000). Occasionally it may variables (Jaccard and Wan, 1996); it also requires larger sample size to ensure
be the result of server problems or impenetrable firewalls. trustworthy results. For these reasons, SEM was deemed to be inappropriate.
A.M. Shaltoni, D.C. West / Industrial Marketing Management 39 (2010) 1097–1102 1101
Table 3 Table 6
Research constructs reliability test. The relationship between the components of EMO.
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