Uncovering and Increasing E-Commerce Firm Performance

A quantitative study on firms in the e-Commerce context studied the effects of “big data applications” and the “customer orientation” in firm performance. The study proved both big data applications and customer orientation appeared to have a noticeable influence on the performance of the e-Commerce firms.

The term “big data” refers to technologies enabling the collection, management, and analysis of data sets that are too large for conventional database systems. Big data enables firms to track every user’s behavior and connect the dots to determine the most effective ways to convert new customers into repeat customers. The IT capability facilitates the use of big data applications, it provides firms with the ability to process large amounts of information very quickly and to store it with high accuracy. The results of this research show the increasing importance of IT capability and the opportunity for e-commerce companies to use big data to increase their firm performance.

In order to create customer orientation (which increase firm performance), one or more company departments need to be committed to activities focused on developing an understanding of customers current and future needs and the factors that affect them.  The understanding of “What they want, the way they want it, and when they want it”, should be communicated throughout the whole organization. A customer oriented firm  places high priority on present and future customer needs. As a result this has allowed those companies to  develop the  ability to sense events and trends in their customer base allowing  them the to know how to properly respond to such incidents; this is called customer sensing and customer responsiveness. Therefore, the customer orientation is considered a strategic asset which is the outcome of continuous improvements of the customer sensing and responsiveness

Link to the research

Source: Master thesis Radboud University of Nijmegen -author J. Damen


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