Antecedents and Impact of E-commerce
Adoption among New Venture Firms:
Evidence from Tourism and
Hospitality Industry
Onkar Nath Mishra
1
and Saurabh Gupta
2
Abstract
Newly created ventures face many challenges, of which, successfully competing with rivals is a daunting task. In order to grow,
and turn profitable, start-up firms must extensively search for strategies that create and sustain competitive advantage. Adoption
of e-commerce is considered as a very potent strategy to beat competitors and generate profits. Taking tourism and hospitality,
an information-intensive industry, this study set two primary objectives regarding e-commerce adoption. First, to investigate the
antecedents of e-commerce adoption and second, to gather empirical evidences about the impact of e-commerce adoption on such
firms. The study was motivated by the paucity of literature on adoption of e-commerce by start-up firms, especially in the tourism
and hospitality industry. The empirical results showed that market- and organization-related factors were prime determinants of
e-commerce adoption by start-up firms. The study also confirmed the improved performance of tourism and hospitality start-ups as
a result of e-commerce adoption.
Key Words
E-commerce, Start-ups, Tourism and Hospitality, GCC Countries, Business Performance
Vision
1–10
© 2020 MDI
Reprints and permissions:
in.sagepub.com/journals-permissions-india
DOI: 10.1177/0972262920927940
journals.sagepub.com/home/vis
Article
1
Birla Institute of Technology, Mesra Ranchi, Ras Al Khaimah, United Arab Emirates (UAE).
2
Jaipuria Institute of Management, Indirapuram, Gaziabad, India.
Corresponding author:
Onkar Nath Mishra, Birla Institute of Technology, Mesra Ranchi, RAKEZ Academic Zone, Al Dhait South, PO. Box: 41222, Ras al Khaimah, UAE.
E-mail: aavirmishra@gmail.com
Introduction
Newly created ventures face many challenges ranging from
availability of cheaper and adequate finance to successfully
competing with the rivals. In order to grow and turn profit-
able, the start-up firms must extensively search for strate-
gies that create and sustain competitive advantage. Today,
adoption of e-commerce strategy is considered one such
potent strategy to create sustainable competitive advan-
tage for the start-up firms by offering several advantages
(Oliveira & Martins, 2010; Wu et al., 2006). The available
literature suggests advantages such as increased sales,
lower costs, increased productivity and extended market
reach (Rahayu & Day, 2017). It has provided a way for
businesses to process, collect and share the information
with their stakeholders and customers (Kollberg & Dreyer,
2006). It not only provides technological advantage leading
to lower costs and high profitability but has also become
the backbone of modern business organizations. Therefore,
there is no surprise that e-commerce has emerged as a pow-
erful determinant of business performance of commercial
entities, both new and old (Salwani et al., 2009).
Currently, there is hardly any sector that is alien to
e-commerce. Many organizations and industries such as
electronics, banking, retail and education industry have
realized the potential of e-commerce (Norzaidi et al., 2007).
It has helped these industries to perform efficiently and
effectively. With a rapid rise in the internet users and pene-
tration of internet services, the prospects of e-commerce
seem bright.
Despite multiple benefits of e-commerce adoption,
start-up firms are not very enthusiastic in adopting e-
commerce. There are several studies documenting the
various reasons for new ventures being less receptive to
the adoption of e-commerce. Several explanations have
been offered such as high cost, poor IT infrastructure, lack
of interest from business partners, lack of trained human
resources, little support from government and security
issues (Jones et al., 2013; Kotelnikov, 2007). It is thus
evident from literature survey that adoption and success of
new technology like e-commerce by new ventures requires
support from various stakeholders such as owners and
promoters, managers and governments.