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1、Website Development Strategy for e-Commerce SuccessMinwoo Lee Rawls College of Business Texas Tech University Lubbock, Texas, U.S. 2minwoo@gmail.comHye Young Lee Asiana Abacus Co. Ltd. Seoul, Korea catllee@naver.c
2、omMoon-Gil Yoon Department of Business Administration Korea Aerospace University Koyang-shi, Korea. mgyoon@kau.ac.krAbstract— Nowadays a website for e-Commerce has given the traditional companies much more opportun
3、ities in contacting customers more easily, implementing business to the new market, e-Commerce, increasing the profit, and gaining competitiveness. Even though lots of studies have given efforts to examine website qu
4、ality factors affecting e-Commerce success and measuring it, there is a lack of scarcity of models for suggesting website development strategy for e-Commerce Success. This paper proposes a website development strategy
5、 for e-Commerce success by not only investigating website quality factors, their relative importance in choosing preferred website, but also finding which quality factors should be modified and enhanced for e-Commerce
6、 Success. This study provides useful insights to contribute the decision making of e-Commerce companies to making strategic decision and allocating their limited resources in order to develop more preferred website
7、s and improve their financial performance. Also, this paper presents a methodological contribution by demonstrating the use of data envelopment analysis (DEA), a linear programming methodology to measure the effi
8、ciency of multiple decision making units, to IS research. Keywords-Website development strategy; e- Commerce Success; Website quality; Data Envelopment Analysis; financial performanceI. INTRODUCTIONe-Commerce today
9、 means many things to different people. There have been a wide variety of e-commerce definition and concepts dealing with a number of issues, applications, and value chain models. However, evaluating e-Commerce succes
10、s is challenging issue and especially there are few studies considering financial performance as a dependant variable in the context of e-Commerce. Furthermore, there is an urgent need to give decision makers a bette
11、r understanding of online customers’ perception of more preferred websites [25, 38, 40]. An e-Commerce system can be considered as a kind of information system and thus information systems theory and IS success model
12、 can be used and extended in measuring e- Commerce success [12, 17, 23]. Many conceptual models have been proposed to measure IS success and DeLone and McLean’s IS success model is one of the most highly cited and used
13、 models in a number of research. Also, many researchers have used this model to measure e-Commerce success. However, as I mentioned above, since measuring e-Commerce success is a challenging task and very complex enti
14、ties, we need to use this model very carefully in evaluating e- Commerce success. Therefore, there is a need to develop a new theoretical model that integrates some factors proposed previously in many studies for meas
15、uring e-Commerce success into a cohesive form. The problem is how to evaluate e-Commerce success well. The existing some models have just used D&M IS success model or tried to extend it for this task. Otherwise,
16、other studies have proposed conceptual models dealing with trust, design perspective, customer behavior perspective, and/or website quality factors. However, there is little research that integrates such diverse pers
17、pectives to be needed in measuring e-Commerce success. Also, previous research about e- Commerce success has focused on customers’ satisfaction or their intention of use as a dependent variable. Even though those thin
18、gs might be important to understand individuals’ behavior, there is a lack of attempt to consider financial performance as a dependent variable and to find the relationship between website preference and financial pe
19、rformance. To resolve problems we mentioned in previous section, this paper addresses the following questions relating to measuring e-Commerce success: - What are the factors which online customers consider important
20、ly in selecting preferred website? - How is their relative importance among such factors? - Is there positive relationship between website preference and financial performance? - How to find which quality factors sho
21、uld be modified and enhanced for e-Commerce Success? Along with these questions, the purpose of this study is to introduce new conceptual model for measuring e-Commerce success and to validate it, and also find how de
22、cision makers satisfaction and the financial performance. Lee and Kozar [17] investigated the effect of website quality on e-business success and only tested it empirically. That study conducted thorough research for
23、investigating website quality factors, their relative importance in selecting the most preferred website, and the relationship between website preference and financial performance by using an analytic hierarchy proces
24、s (AHP). This study has some limitations such as small samples, not representing all e-commerce domains, and conducting under a simulated purchasing environment. Although several researchers have made such efforts to
25、 provide meaningful findings and measure e-commerce success, I believe that there is ample room for suggesting new methodology to measure e-commerce success, finding empirical evidence in relationship between factors
26、affecting e- commerce success and firm’s financial performance, and providing e-commerce companies with useful insights to enhance their profit. C. Data Envelopment Analysis (DEA) DEA is a linear programming methodolog
27、y to measure the efficiency of multiple Decision Making Units (DMUs) when production process presents a structure of multiple inputs and outputs. Since DEA was first created by Charnes et al. (1978) [6], there has be
28、en a large number of research applying DEA on various sets of problem. A distinguishing feature of the DEA is its capability to handle multiple inputs and outputs. Thus, DEA help researchers use multiple measures of
29、inputs and outputs in order to evaluate the performance of decision- making units within an organization or among organizations in the selected industry [37]. DEA can analyze the multiple inputs and outputs in their n
30、atural physical units rather than having to transform them into a common denominator. DEA has been successfully applied to diverse business issues including production control, transportation, human resource allocatio
31、n, and so on. However, this model has now been little applied to e-business field. Only a few studies [3, 5, 37] have been conducted. III. RESEARCH MODELA large number of studies have been discussing e- commerce succ
32、ess and proposing the conceptual models. However, there are few studies to measure e-commerce success and verify it empirically. Molla and Licker [23] partially extend and re-specify the DeLone and McLean model of IS
33、 success to e-commerce systems. They proposed Customer E- commerce Satisfaction (CES) rather than individual / organizational impact as a dependent variable to e-commerce success and its relationship with e-commerce sy
34、stem quality, content quality, use, trust, and support. DeLone and McLean [11] proposed an updated model including new factors like service quality, intention to use, and net benefits. Also, they introduced the metho
35、dology for measuring e-commerce success applying their updated model [12]. Based on the updated model, methodology for measuring e-commerce success, and literature on newly applied factors, this study proposes a rese
36、arch model to find website quality factors affecting customers’ decision in selecting a most preferred website and the relationship between such website selection and a financial performance as shown in Figure 2. The m
37、odel consists of five factors like information quality, systems quality, service quality, trust, and vendor-specific quality. A. Information quality Previous studies have not paid much attention to information quali
38、ty for e-commerce success. While information quality has been considered as an important factor for information systems success, e-commerce has elevated content [23]. Some studies indicated that information qualit
39、y in the e-commerce context is one of the variables that affects the satisfaction of website user and found that the quality of information is one of the determinants of positive customer attitudes towards websites [
40、7, 35, 39]. Information quality can be measured by accuracy, completeness, currency, and format. Measurements and significant impacts of them are identified by Nelson et al [24]. According to their definitions, accur
41、acy is the degree to which information is correct, unambiguous, meaningful, believable, and consistent. Completeness means the degree to which all possible states relevant to the user population are represented in th
42、e stored information. Currency is the degree to which information is up-to-date, or the degree to which the information precisely reflects the current state of the world that it represents. Finally, format is the degr
43、ee to which information is presented in a manner that is understandable and interpretable to the user and thus aids in the completion of a task. Figure 2. Conceptual model for measuring e-Commerce Success. B. Systems
44、 quality For the last two decades, IS researchers have identified the key measures of system quality including usefulness, usability, responsiveness, reliability, and flexibility [12, 24] proposed that system quality
45、can be measured by accessibility, reliability, response time, flexibility, and integration. Also, According to Palmer [25], customization and ease of navigation are the critical factors for consumer use of the website
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