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Critical factors in e-business adoption: Evidence from Australian transport and logistics companies

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  • Nguyen, Hong-Oanh

Abstract

This study develops a discrete variable investment model and applies it in the study of the decision to adopt e-business by transport and logistics companies. The data analysis is carried out in two phases; in the first phase, factor analysis is conducted to identify the principal components influential to the e-business adoption decision; in the second phase, logistic regression is conducted to further analyse the effect of individual components on the adoption decision. The analysis of the data obtained from a survey of Australian transport and logistics companies has found various factors influential to the adoption decision. The first factor relates to service quality improvements brought about by e-business adoption including a higher level of competitiveness, service differentiation, value adding, improved customer services and supply chain integration. The second factor concerns the financial aspect of e-business adoption including large initial investment expense, financial constraints, and costs of operation and maintenance. The third factor concerns expectations about market demand in terms of volatility and growth in demand for freight and logistics services. The analysis and results shed light on the behaviour of transport and logistics companies and the sector’s view toward e-business adoption. For example, the decision to adopt e-business should take into account not only the benefits but also the costs of adoption, running and maintenance as well as financial constraints. The model developed by the study can be applied to any sectors or industries, in which companies face discrete investment choices.

Suggested Citation

  • Nguyen, Hong-Oanh, 2013. "Critical factors in e-business adoption: Evidence from Australian transport and logistics companies," International Journal of Production Economics, Elsevier, vol. 146(1), pages 300-312.
    • Handle: RePEc:eee:proeco:v:146:y:2013:i:1:p:300-312
    DOI: 10.1016/j.ijpe.2013.07.014
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    3. Ilin, Vladimir & Ivetić, Jelena & Simić, Dragan, 2017. "Understanding the determinants of e-business adoption in ERP-enabled firms and non-ERP-enabled firms: A case study of the Western Balkan Peninsula," Technological Forecasting and Social Change, Elsevier, vol. 125(C), pages 206-223.
    4. Janpriy Sharma & Mohit Tyagi, 2022. "Assessment of the Endorsers of E-Business Practices for Food Supply Chain Performance Systems," International Journal of E-Business Research (IJEBR), IGI Global, vol. 18(2), pages 1-24, April.
    5. S Mupemhi & A Muposhi, 2018. "Organisational Factors Influencing E-business Adoption in Zimbabwe's Manufacturing Sector," Journal of Economics and Behavioral Studies, AMH International, vol. 10(2), pages 176-187.
    6. Toktaş-Palut, Peral & Baylav, Ecem & Teoman, Seyhan & Altunbey, Mustafa, 2014. "The impact of barriers and benefits of e-procurement on its adoption decision: An empirical analysis," International Journal of Production Economics, Elsevier, vol. 158(C), pages 77-90.
    7. Ziping Wang & Dong-Qing Yao & Xiaohang Yue, 2017. "E-business system investment for fresh agricultural food industry in China," Annals of Operations Research, Springer, vol. 257(1), pages 379-394, October.
    8. Zeng, Fangli & Chan, Hing Kai & Pawar, Kulwant, 2020. "The adoption of open platform for container bookings in the maritime supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 141(C).
    9. Orji, Ifeyinwa Juliet & Kusi-Sarpong, Simonov & Huang, Shuangfa & Vazquez-Brust, Diego, 2020. "Evaluating the factors that influence blockchain adoption in the freight logistics industry," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 141(C).
    10. Maria Kamariotou & Fotis Kitsios, 2024. "Information systems and strategy-as-practice in the digital era: an artificial neural network model for SMEs," Operational Research, Springer, vol. 24(3), pages 1-20, September.
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    12. Erik Hofmann & Florin Osterwalder, 2017. "Third-Party Logistics Providers in the Digital Age: Towards a New Competitive Arena?," Logistics, MDPI, vol. 1(2), pages 1-28, November.

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