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Many studies prove a
connection between the adoption of Internet and the
company size: a recent survey (OECD, 1998) on a set of 2,881 European SMEs
shows how the percentage of Internet connected SMEs is directly proportional to the
company size ( Table 1).
As cited above, the use of ICT could significantly change the way people
work: a lot of research focuses on the organizational impact
and the need of
structural changes due to the adoption of ICT (Bock & Senne, 1997; Chaumont et
al., 1998; Gramignoli, Ravarini & Tagliavini,
1999; Hills, 1997), considering the new
competencies, roles, and skills required by innovation.
A business variable considered very important when evaluating the EC adop-
tion is the product characteristics. An “intangible”
product made of bits (such as
software packages) is surely easier to be sold because it can be supplied directly
on the Internet (Negroponte, 1995). Moreover, most researchers agree in con-
sidering more suitable to be sold electronically those products with low asset
specificity, ease of description, and a consumer market willing to buy without
recourse to visiting retail stores (Benjamin & Yates, 1991; Wigand et al., 1997;
Wigand, 1996).
The literature shows how ICT can influence any competitive strategy, based
on cost or differentiation. A correct adoption of EC could lead to a reduction of
transaction costs (Chaumont et al., 1998) and coordination costs (Wigand et al.,
1997). On the other hand, today it is widely accepted the influence of ICT not
only on operating activities but on the redefinition and pursue of the business strat-
egy (Boynton & Zmud, 1994; Drucker, 1988; Piore & Sabel, 1984).
Another EC-enabled change described by the literature is the transformation
of the relationships with intermediaries. Many authors
refer to EC as the cause
of important changes in the company value chain (Chaumont et al., 1998; Wigand
et al., 1997). Reynolds (1997) asserts that relationships with customers will be-
come increasingly remote and impersonal and that suppliers will have to fight against
retailers in a changing market. Other authors (Wigand, 1996) uphold the theory
that the complete disintermediation is unfeasible, because it would jeopardize the
existence of the market itself.
Finally, EC has an important influence on SMEs’
range of activity, providing
increased competition on a global scale and allowing them to access wider mar-
kets (Chaumont et al., 1998; Krause, Doblies & Raupach, 1998; Wigand et al.,
1997).