1.

CONCEPTUAL FRAMEWORK


E-Commerce Capabilities Organization
Performance
-Information
-Transactions  Lower production cost
-Interactions
-Supplier connection  Profit generation
 Inventory management

E-Commerce Competency

-Skills
-Information Systems Infrastructure
-Experience Control
-Slack Resources
- Firm Size
- Industry
concentraion

Figure 3.1: Conceptual framework

Based on the conceptual framework, it can be hypothesized that:

H01: There is a relationship between e-commerce and organization performance.

H11: There is no relationship between e-commerce and organization performance.

H02: Greater EC capability, in conjunction with e-commerce competency, is associated with

lower cost measures.

H22: Greater EC capability, in conjunction with e-commerce competency, is not associated with

lower cost measures.

H03: Greater EC capability, in conjunction with e-commerce competency, is associated with

higher profitability measures.

H33: Greater EC capability, in conjunction with e-commerce competency, is not associated with

higher profitability measures.

H04: Greater EC capability, in conjunction with e-commerce competency, is associated with

improved supply chain efficiency.

H44: Greater EC capability, in conjunction with e-commerce competency, is not associated with

improved supply chain efficiency.

Figure 3.2 shows the proposed conceptual model of this study.

In this framework, two sets of independent variables  E-commerce capability and E-commerce

competence are jointly associated with performance measures.

E-commerce capability is a composite index generated from a set of specific variables measuring

e-commerce functionalities related to customers and suppliers.

Based on the RBV of the organization, organization performance is directly affected by

electronic commerce competence. The ability of an organization to employ e-commerce

technologies to deliver higher customer value may be a pivotal role of e-commerce competence.

(Saeed et.al., 2005, & Handerson, 1994). Skills, information systems infrastructure, experience

and slack resources may reflect competency. In order to contribute toward organization

performance, e-commerce competence is representative of pivotal resources differentiated across

organization. (Saeed et al.2005)

E-commerce capability alone might be insufficient to impact performance measures, rather it

may be integrated with the firm’s existing e-commerce competence. The information systems
infrastructure provides the platform to launch innovative e-commerce applications faster or more

effectively than the competitors.

1.1 Concepts and variables in the study

Concept Dependent Variable

Revenue per employee
Cost of goods sold
Organizational Performance
Profit Margin (%)
Inventory turnover(Improved supply chain
efficiency)

Table 3.1: Concept and dependent variables

Concept Independent Variable

Information
Transaction
e-commerce capabilities
Interaction and customization
Supplier Connection
Skills
Information systems infrastructure
E-commerce competence
Experience
Slack Resources

Table 3.2: Concepts and independent variables

2. METHODOLOGY

Since this study is exploratory in nature, a survey methodology was used for this study.

Personal interviews will be conducted with key persons in manufacturing companies who run e-

commerce applications in their business. The objective of the study was to interact with the e-
commerce applications implemented manufacturing companies and to collect the quantitative

and qualitative data from them through structured questionnaire.

Data for this study will be obtained from both primary and secondary sources. Structured

questionnaires will be used as the main techniques of primary data collection. To measure the

responses on survey, questionnaire will use Five-point-Likert scale. Internet, articles, books and

reports related to study will be used for collection to secondary data. Companies were selected

from following manufacturing sectors in Sri Lanka.

• Glove Manufacturing Sector

• Textile & Garments Sector

• Tyre, tube and Rubber based product Sector

• Food & Beverages Sector

• Cement sector

• Stationery Manufacturing sector