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IJCHM
28,9
E-commerce performance in
hospitality and tourism
Nan Hua
University of Central Florida, Orlando, Florida, USA
2052
Received 21 May 2015
Revised 20 October 2015 Abstract
3 February 2016 Purpose – This study aims to examine the extant E-commerce performance literature to derive a
Accepted 12 February 2016 coherent framework to further the understanding, identify research gaps and suggest potential future
study directions.
Design/methodology/approach – Based on theoretical sampling (Corbin and Strauss, 2008), this
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study followed Greenhalgh et al. (2009) for the paper sample collection and used exploratory methods
before the snowballing technique to identify key sources to uncover the E-commerce performance
themes and prior findings systematically.
Findings – By reviewing and synthesizing 155 recent articles, this study proposed an integrated
framework of E-commerce performance to organize the complex literature parsimoniously. This study
found that E-commerce performance exhibits three key dimensions and is influenced by market
E-commerce environment, organization E-commerce environment and the dynamic and interactive
relationships in between.
Practical implications – The proposed framework offers industry practitioners opportunities to
understand determinants and be updated with current practices of E-commerce performance. The
findings of this study further point practitioners to directions that can lead to better E-commerce
performance.
Originality/value – This study produced a cohesive framework of E-commerce performance based
on an extensive review of the literature in both the mainstream and hospitality and tourism fields,
addressing the issue of the currently fragmented understanding on E-commerce performance in
hospitality and tourism.
Keywords Tourism, Electronic commerce, Performance measurement, Hospitality industry,
Hospitality, E-commerce performance
Paper type Literature review
1. Introduction
Over the past two decades, the explosion of research interest related to E-commerce
performance has stimulated a substantial number of academic studies (Chae et al., 2014;
Hua et al., 2015; Law et al., 2014; Yang et al., 2015). Although these studies have
significantly enriched the body of knowledge for E-commerce performance, new
challenges surface as the sheer work volume has become more or less an obstacle for
knowledge development and the literature has still remained fragmented. In particular,
an overarching framework that can provide guidance and structure to the swiftly
increasing body of academic literature is lacking. Therefore, the evolution of
International Journal of E-commerce performance literature calls for a systematic integration and synthesis of
Contemporary Hospitality
Management existing knowledge to inform the next wave of academic endeavors in this field.
Vol. 28 No. 9, 2016
pp. 2052-2079
An information technology (IT) – intensive environment (Hua et al., 2015) has
© Emerald Group Publishing Limited
0959-6119
managed to come through and stay for the hospitality and tourism industry, regardless
DOI 10.1108/IJCHM-05-2015-0247 of the well-recognized reluctance for hoteliers to adopt new technologies (Buhalis, 2003;
Law and Jogaratnam, 2005) or the evolving harmony for business stakeholders to E-commerce
welcome IT progressing with tourism hand in hand (Poon, 1993; Sheldon, 1997). performance
Business processes, such as business-to-business (B2B) and business-to-consumer
(B2C), are digitized (Beldona et al., 2012), and attentions have shifted from promotion
(1960s), product development and marketing research (1970s) and revenue management
(1980s) (Dev et al., 2010) to focus on internet- and IT-mediated business processes, such
as consumer-to-consumer (C2C) social activities (Morosan et al., 2014). 2053
While IT has increasingly permeated the industry as supported by its own
advancement and accommodating business models (Law et al., 2014), a holistic
customer/client experience is a common goal most contemporary digital processes
are striving for (Nyheim and Connolly, 2012). In addition, these digital processes are
often characterized by usefulness, playfulness and ease of use (Morosan and Jeong,
2008). As a result, mobile and social networking business-related technology
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Considering the complexity, ubiquity and criticality of E-commerce among B2B, B2C
and organization-facilitated C2C settings in the tourism and hospitality industry (Hua
et al., 2015), this study offers a review of 155 recent articles published both in
mainstream E-commerce literature and the hospitality and tourism field. Focused on
E-commerce performance, this study aims to further our understanding, identify
research gaps and suggest potential future study directions. It should be noted that,
although studies in hospitality and tourism have approached E-commerce performance
from many distinct perspectives, we have only managed to understand the nature and
impacts of E-commerce in a scattered and fragmented fashion; an integration approach
is thus much needed. Therefore, this study also attempts to synthesize extant empirical
studies of E-commerce performance and offer a coherent and informative framework of
IJCHM E-commerce performance, which should contribute to advancing knowledge
28,9 development and produce a significant long-term impact (Maclnnis, 2011).
2. Methodology
Because no study has systematically examined the topic of E-commerce performance in
2054 the mainstream and hospitality and tourism field, conducting a comprehensive and
pertinent review of the E-commerce performance literature requires the method of
theoretical sampling (Corbin and Strauss, 2008). In this case, articles related to
E-commerce performance are considered the sample, whose size is determined by the
point of “informational redundancy”. In other words, the article collection process will
stop when finding overlaps start to emerge from the articles repetitively and no new
information is anticipated (Lincoln and Cuba, 1985, p. 202). Such a point would suggest
that both information depth and breadth are achieved (Bowen, 2008), and a theoretical
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It is a common practice in the hospitality and tourism field to use “mainstream journals”
to refer to generic discipline-specific journals, such as Management Information 2055
Systems Quarterly, and to use “hospitality or tourism journals” to refer to journals that
are contextualized in hospitality and tourism. This categorization further facilitates
research gap identification, article synthesis and theoretical framework construction.
between E-commerce and firm performance. E-commerce in the 1990s appeared to have
offered advantages to firms with resource slack, exhibiting characteristics of utilizing
proprietary systems (Wang, 2010). For example, E-commerce facilitated by electronic
data interchange (EDI) created competitive advantages for those that employed it
(Mukhopadhyay et al., 1995). Santhanam and Hartono (2003) showed that EDI was
sustainable to a certain extent in a multi-industry context, suggesting firm IT
capabilities could improve performance (Bharadwaj, 2000). In addition, these
stand-alone and proprietary systems are often costly or difficult for firms to
communicate with their trading partners because of a lack in powerful communicating
platforms and constraints in data (Yang et al., 2015).
Facilitated by abundant IT support, significantly reduced costs and surging vendor
interests, E-commerce started to take center stage in the 2000s (Masli et al., 2011).
Particularly noteworthy was that the extensive standardization of IT tools (Wang, 2010)
and Web-based technologies, which offer two-way, real-time information exchange on
the value chain (Zhu 2004), offered opportunities for firms that were smaller and less
resourceful to compete with those that were bigger and more resourceful (Masli et al.,
2011). As a result, E-commerce induced large-scale transformations that were both
internal and external to an organization, exerting profound influence on both the
organization and its relationship with stakeholders (Carr, 2003).
repurchase intention (Oh et al., 2009). Therefore, it appears that E-commerce platforms
that are user friendly, functional, easy and fun to use and safe can significantly improve
E-commerce performance. In particular, proper E-commerce decisions can result in
competitive advantages (Bilgihan et al., 2011).
Understanding the key influencers of the performance of this fundamental platform and
its core dimensions, therefore, is critical for modern business survival and success.
Based on the findings of this study, the E-commerce performance framework can be
derived as follows in Figure 1. The key dimensions and influencers of E-commerce
performance are identified and relationships depicted. Specifically, E-commerce
performance was found to exhibit three key dimensions that encompass
competitiveness and marketing, strategic development and efficiency (Abou-Shouk
et al., 2013). It appears that E-commerce performance is influenced by market
E-commerce environment, organization E-commerce environment and the dynamic and
interactive relationships in between (Cohen and Olsen, 2013; Ho et al., 2012; Hua et al.,
2015; Law et al., 2014; Wang et al., 2013).
The market E-commerce environment, primarily the E-commerce infrastructure and
superstructure external to an organization that define, support and communicate
E-commerce
performance
2063
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Figure 1.
The E-commerce
performance
framework
organizational needs and wants for optimal results and superior performance, is considered
as both stimulating and constraining the organization’s potential for innovation and better
performance. It encompasses suppliers, investors, IT developers, competitors, consumers
and other stakeholders (Carr, 2003) and bears heavy influence on E-commerce performance
by interacting with the organization through a variety of channels and means, such as the
fundamental supply-and-demand relationship between the organization and suppliers
(Wang, 2010), consumers (Gaffney, 2013) and competitors (Masli et al., 2011), asymmetrical
environmental and social responsibility concerns between the organization and investors
(Escobar-Rodríguez and Carvajal-Trujillo, 2013), and the balance of capital budget control
and innovation push between the organization and IT developers (Gaston and Botts, 2013).
The organization E-commerce environment, which supports information synthesis
into ideas and solutions to developing and/or existing problems and issues, is
considered as influencing organizational effectiveness in response to its market
environment. These include complex and dynamic interactions between organizational
core competencies (Lederer et al., 2001; Straub and Klein, 2001; Zhu, 2004), products and
services (Liang and Lim, 2011) and supporting tangible and intangible assets such as
internet and associated technologies (Mata et al., 1995), human and business IT
resources (Siqueira and Fleury, 2011; Li et al., 2014), dynamic capabilities developed in
the mobile dimension – e.g. trip planning, real-time information accessing, information
sharing and problem-solving (Wang et al., 2012) – and appropriate E-commerce support
to continuously improve their resource allocation and performance (Wheeler, 2002).
Opportunities and barriers to communication resulting from bordering internal and
external E-commerce environments between the organization and its market, given a set of
internal characteristics, can be both arousing and stifling the organization’s response.
Therefore, the market and organization E-commerce environments further interact and
deliver a separate, as well as combined influence upon E-commerce performance of an
organization (Carr, 2003; Cohen and Olsen, 2013; Escobar-Rodríguez and Carvajal-Trujillo,
IJCHM 2013; Gaffney, 2013; Ho et al., 2012; Hua et al., 2015; Law et al., 2014; Wang et al., 2013),
28,9 resulting in the dynamic model of E-commerce performance depicted in Figure 1.
Prior studies that addressed issues of E-commerce performance in the hospitality and
tourism field, although fragmented, have made significant contributions to the literature
by providing both theoretical frameworks and empirical evidence for key relationships
as depicted in Figure 1 (Abou-Shouk et al., 2013; Cohen and Olsen, 2013; Ho et al., 2012;
2064 Hua et al., 2015; Law et al., 2014; Wang et al., 2013). It is important to note, however, that
E-commerce-supported business interactions could significantly contribute to all three
aspects of E-commerce performance, i.e. competitiveness and marketing, strategic
development and efficiency, which, at the same time, are critical considerations for
business and strategic decisions to deploy E-commerce technologies and infrastructure
in the first place (Abou-Shouk et al., 2013).
Researchers in hospitality and tourism appear to have focused primarily on two
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6. Theoretical implications
Researchers have started to address the fundamental question of whether E-commerce
contributes to superior performance. For example, Kim et al. (2009) examined drivers of
individual E-commerce components, while Hua et al. (2015) tested the overall impact of
E-commerce on performance. It appears that the latest findings suggest that using
E-commerce for strategic purposes contributes to achieving long-term competitive
advantage; in particular, E-commerce appears to be instrumental in improving
customer satisfaction, managerial efficiency, marketing efficacy and financial
performance (Hua et al., 2015; Kim et al., 2009).
In addition, broader, as well as interdisciplinary, implications follow from studies of
E-commerce performance in IT, performance analysis, marketing and strategic
management, providing foundations for future studies examining consequences of
strategic choices. For example, Hua et al. (2015) made a contribution to the marketing
literature by specifically showing the manner in which combining various components
of marketing strategies to form an overall strategy can help organizations increase
revenue. On the other hand, specific manners in which E-commerce contributes to
performance were also revealed by recent studies, shedding light on superior
managerial decision-making possibilities. For example, even though system beliefs or
desire of control tend to drive E-commerce deployment (Cohen and Olsen, 2013),
E-commerce’s contribution to room revenue provides an opportunity for managers to
better understand potential benefits of E-commerce adoption and, consequently, to
make superior decisions (Abou-Shouk et al., 2013; Hua et al., 2015).
Further fundamental and theoretical questions will likely be explored based on the
proposed framework of E-commerce performance, identified research gaps and new
research directions. For example, different aspects of the framework (Figure 1) will
likely be brought under scrutiny to understand both their individual roles and mutual
relationships against the backdrop of improving E-commerce performance. Scholarly
endeavors on E-commerce performance have primarily focused on consumers and the
IJCHM organization(s) of interest in hospitality and tourism largely because E-commerce still
28,9 has a long way to reach its mature stage – maturity tends to be positively associated
with the resources that can be used to satisfy more stakeholders (Jawahar and
McLaughlinn, 2001). Along this line of reasoning, more studies will attempt to focus on
many other stakeholders, such as governments, activists, environmentalists,
technology acquisition specialists and venture capitalists, to understand their roles with
2066 regards to and impacts on E-commerce performance.
7. Practical implications
Driven by the need to create and maintain competitive advantages, E-commerce
business models have evolved over time to adapt to the dynamic market and to better
produce and implement E-commerce protocols within a “very competitive operating
environment” (Hua et al., 2015).
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8. Future research
Because of currently fragmented research on E-commerce performance in hospitality
and tourism, a stream of future research developing coherent themes and frameworks is
more likely to follow, particularly as E-commerce permeates businesses inside and out.
From an E-commerce performance perspective, studies are likely to explore the further
impact of relationships between all three domains of an organization:
(1) the organization’s external market environment;
(2) the organization’s internal optimal performance; and
(3) flows between the organization and its market environment.
More in-depth theoretical building and empirical tests are expected to focus on each of
these three domains as well.
As the E-commerce life cycle evolves past the initial stage and into maturity,
organizations will adapt and evolve accordingly and accumulate more resources to
satisfy more stakeholders (Jawahar and McLaughlin, 2001). As a result, scholarly
endeavors on E-commerce performance will also evolve from focusing primarily on
consumers and the organization(s) of interest to encompassing more constituents. For
example, in addressing issues and questions related to E-commerce performance,
corporate governance and market function can be further explored to seek answers to
questions related to criminals (e.g. unauthorized hacking to steal personal information
such as social security number), as well as competitors; E-commerce infrastructure can
be carefully examined to address and highlight the connection between researchers/
universities and the industry; and a variety of other themes such as acquisition,
evaluation and public governance can be assessed to uncover solutions challenging to
other parties of interest such as technology acquisition specialists, venture capitalists,
activists and governments (Chua et al., 2005).
More targeted and specialized studies will focus on specific aspects of E-commerce
performance with in-depth analyses, considering current studies in hospitality and
tourism tend to be exploratory within the context of certain service category, such as
mobile E-commerce, online marketing, online data services and social media marketing.
For example, social media integration into traditional distribution channels will
IJCHM continue to increase (Xiang and Gretzel, 2010). In particular, Facebook developed search
28,9 tools that double as a distribution channel, providing a natural context to further
understand how to improve E-commerce performance from marketing and revenue
management perspectives.
Study scopes will expand further beyond foundational themes of defining, describing
and exploring into modeling challenges and assessing determinants of E-commerce
2068 performance. Success criteria and evaluation systems would be critical issues to explore
in the future, considering the motto of what gets measured gets done. Particularly,
business models, systems and processes would draw more attention from both the
industry and academia, as they are potential drivers of E-commerce performance.
Although further examining outcomes of IT adoption will provide an important
complementary view and make a critical contribution to the literature on the
institutional adoption of IT (Hua et al., 2015), future studies will likely cover more
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be bridged. By reviewing and synthesizing 155 recent articles, this study proposes a
framework of E-commerce performance to organize the complex literature
parsimoniously. The framework is structured around three major domains of an
organization:
(1) the organization’s external market environment;
(2) the organization’s internal optimal performance; and
(3) flows between the organization and its market environment, manifesting
intrinsic, dynamic and interactive relationships that affect E-commerce
performance.
The proposed framework was used to identify specific gaps in the literature and discuss
opportunities that lead to future research frameworks, theoretical developments and
emerging trends, in the hopes of advancing scholarship and practices in this
increasingly more important area of E-commerce performance in hospitality and
tourism.
Key contributions of this study, therefore, can be summarized in four aspects. First,
this study produced a cohesive framework of E-commerce performance based on an
extensive review of literature in both the mainstream and hospitality and tourism fields,
addressing the issue of currently fragmented understanding on E-commerce
performance in hospitality and tourism. Second, the proposed framework was used to
identify specific gaps in the literature and discuss opportunities that lead to future
research frameworks, theoretical developments and emerging trends in this
increasingly more important area of E-commerce performance in hospitality and
tourism. Third, the proposed framework would also shed light on industry practitioners
with regard to understanding determinants and being updated with current practices of
E-commerce performance. And fourth, the findings of this study point practitioners to
directions that can lead to better E-commerce performance.
Proper caution, though, should be exercised when interpreting findings of this
study because of the intrinsic limitations associated with articles of the literature
review nature – journal and publication selection, timing and relevance criteria and
the researcher’s decision and interpretation could affect the generality of review
papers.
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Corresponding author
Nan Hua can be contacted at: nan.hua@gmail.com
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