Exploring the Effect of E-Business Operations on E-Business Performance: Moderating Effect of Responsiveness to the Supplier

Abstract

Extant research on service operations has called for investigating the link between e-retailers’ e-business operations and e-business performance. In addition to investigating this link, this study examined whether such links are moderated by an e-retailer’s responsiveness to the supplier. Since, as previous studies have shown, web store suppliers play an essential role in e-retailers’ value creation, it is important to study how the cooperation between the parties works. The data were collected from Finnish e-retailers through a survey, and the results revealed that one component of e-business operations, namely customer orientation, significantly impacts both the e-retailer’s financial and operational performance, while service maintenance and customization do not affect e-business performance. Responsiveness to the supplier, it was also found, exerts a statistically significant positive moderating effect on the relationship between the e-retailer’s customer orientation and financial performance. Moreover, to boost e-business performance, web store suppliers could take a more active part in e-retailers’ business operations. By focusing on the link between web store suppliers and e-retailers, this study brings awareness to the less-studied role of web store suppliers in e-retailers’ performance and offers a new perspective.