A Societral perspective on e‐business adoption
| Pages | 149-166 |
| DOI | https://doi.org/10.1108/14779960380000233 |
| Published date | 01 August 2003 |
| Date | 01 August 2003 |
| Author | Athanasia Pouloudi,Xenia Ziouvelou,Konstantina Vassilopoulou |
| Subject Matter | Information & knowledge management |
A Societral Perspective on
E-business Adoption
1. INTRODUCTION
The definition and discussion about e-busi-
ness models has, to date, focused primarily
on organisational and technical factors. In
contrast, societal factors (that is, factors
related to the general societal context influ-
encing the shape and adoption of e-busi-
ness models in practice) have not been ade-
quately addressed. We argue that develop-
ing models for conducting e-business is not
simply about the adoption of new tech-
nologies. It also concerns changes in work
practices, in customer/supplier relation-
ships, in the way products are delivered to
consumers, in marketing practices and
changes in staff skills needed to support e-
business.
It is projected that new business models
will influence peoples’ everyday life as
much as they are expected to affect work
and employment. For example, E-Bay man-
aged to become a very successful on-line
auction store and maintained its success,
despite the lucrative market in which it was
operating which attracted many competi-
tors. Taking into consideration the varia-
tions in culture of its potential buyers, the
company developed a business model that
eliminated geographic distances and loca-
tion asymmetries amongst sellers and buy-
ers and moreover brought everybody
together in a common virtual marketplace
that took into consideration the differ-
ences of its users. Hence, on-line communi-
ties were created. Moreover, as E-Bay
Info, Comm & Ethics in Society (2003) 1: 149–165
©2003 Troubador Publishing Ltd.
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e-business
business models
social factors
Athanasia Pouloudi, Xenia Ziouvelou and Konstantina Vassilopoulou
ELTRUN – The E-business Centre, Department of Management Science and Technology,
Athens University of Economics and Business, Greece
Email: pouloudi@aueb.gr
CCOOVVEERRAAGGEE
Alarge amount of research work in e-business concerns the experiences and lessons learned from develop-
ing and implementing innovative e-business models. The findings of this research usually concentrate on
financial aspects or on the use of information and communication technologies in a specific company or
industrial sector. While this is critical for understanding and replicating positive business results, we
argue that it is as important to understand the societal context in which business models are developed; it
is social issues that define (constrain or enable) the broader context of e-business adoption. This paper aims
to draw research attention to these social issues and suggests societal factors that influence the adoption of
e-business models. Specifically, the paper argues that factors related to region/geography, culture, the legal
and regulatory environment, economic, ethical and professional factors, as well as factors related to social
capital/social networks and social structure influence, directly or indirectly, the way in which e-business
models are perceived, implemented and evaluated. Three cases are presented to show how these factors
become evident in e-business, followed by a discussion of their managerial implications. The aim of the
paper is to sensitise managers and policy makers in shaping an enabling societal context for the prolifera-
tion of socially acceptable business models.
ABSTRACT
strongly emphasised the importance of
trust and reliability from the consumers’
perspective, consumers became part of its
business model. This turned out to be vital
for its success. Another case in point is E-
trade. The company carefully considered
which regional environment would be best
to set up its business in and selected the US
as an area where people were more likely to
accept and use the privileges and the
opportunities offered. Similar to E-Bay, E-
Trade realized that privacy and security
were very important for its potential cus-
tomers and therefore placed a lot of
emphasis on these issues. The company
enhanced its differentiated appeal by offer-
ing higher quality and a broader product
line. Based upon that, the low-cost compa-
ny had created a differentiation advantage
in the quickly evolving on-line financial
services industry. The consideration of
societal factors in both cases contributed
to the success of these businesses and had
an impact on their increased market share
through the word of mouth (or ‘word of
mouse’), despite the competition.
These cases provide examples of where
new e-business models lead to new business
practices that in turn affect the behaviour
of individuals and, gradually, society as a
whole towards innovative products and
services. More generally, focusing on
dynamic capabilities that emerge from new
business models, and through examination
of societal issues (factors that affect people
and their environment) a wider and deeper
understanding can be gained about e-busi-
ness, triggering further discussion and
research. To this end, this paper identifies
societal e-factors and discusses their
importance in the context of e-business.
Societal aspects of current e-business mod-
els are presented as a crucial element in
achieving sustainable adoption of research
and development outcomes.
The societal e-factors identified in the
course of our analysis have been grouped in
the following categories: factors related to
region/geography, culture, legal and regula-
tory environment, economic, ethical and
professional factors, as well as factors relat-
ed to social capital/social networks and
social structure. These factors influence,
directly or indirectly, the way in which e-
business models are perceived, implement-
ed and evaluated. The paper is structured
as follows: section 2 positions this research
within the European Commission Fifth
Framework Programme. Section 3 discusses
the theoretical basis for our analysis and
section 4 analyses the societal factors and
their role in e-business. Section 5 shows
how societal e-factors can be observed in
practice and section 6 outlines the practical
implications of these factors for managers.
The paper concludes by outlining future
research directions, arguing that technical,
individual, organisational, industrial and
societal factors form an integral part of our
understanding of e-business and its further
development.
2. RESEARCH
BACKGROUND
Following from the observation that the
current technical and organisational focus
on e-business models provides an incom-
plete picture for the development of sus-
tainable e-business, particularly in terms of
acceptance by society, we argue for a holis-
tic study of e-business model adoption. To
this end, we co-ordinate a European Fifth
Framework Programme project entitled ‘E-
FACTORS: a thematic network on e-busi-
ness models’, which brings together 16
partners (e-factors.net, 2002). The ultimate
objective of E-FACTORS is to strengthen
the dissemination of knowledge and under-
standing of e-business models and associat-
ed technologies across Europe.
This dissemination effort is intended to
accelerate the take-up of appropriate infor-
mation and communication technology
(ICT) solutions by adopting a holistic per-
spective to e-business adoption. Such a per-
spective integrates the study of five key
interrelated thematic areas that are impor-
tant for the effective adoption of e-busi-
ness models: individual, organisational,
industrial, societal and technological
(Vassilopoulou et al., 2002). The E-FAC-
Pouloudi: A Societal Perspective on E-business Adoption
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