Despite potentially increased sales and operational efficiencies, a surprising number of firms have not adopted e-business. Annual surveys of e-business use in Canada and other Organization for Economic Co-operation and Development (OECD) countries reveal significant differences in adoption rates between sectors. The surveys identify product characteristics as a key rationale for not adopting online selling. There are examples, however, of firms in all sectors that have discovered how to use online selling (i.e., through direct retailing, portals, online auctions - or other models). This research identifies the key internal capabilities that let firms implement online selling tools and reconfigure their way of doing business, by innovating their business model, to take advantage of e-business. Wheeler’s (2002) Net-Enabled Business Innovation Cycle (NEBIC) model is a theoretical framework for studying the process of implementing e-business tools as technology innovations for business growth where “net-enablement” refers to a firm’s innovative use of networks connected via information technologies. The NEBIC model suggests four sets of capabilities a firm needs to create value for its customers by utilizing technology: choosing enabling technologies, matching technology benefits with economic opportunities, executing business innovation for growth, and assessing customer value. The model is grounded in dynamic capability and absorptive capacity theories, offering an integrated way to adopt an e-business application, such as online selling, using internal capabilities that management can develop through planning, knowledge acquisition, training, and recruitment. This research is the first to operationalize the constructs in the NEBIC model and increase the understanding of the firm capabilities required to implement online selling as a technology innovation for business growth. The study also extends the NEBIC model by developing a construct to measure the innovation in business models firms need as they implement online selling tools. Data gathered from a national sample of Canadian firms are analyzed to test four hypotheses. These concern net-enablement capabilities, and the selection and implementation of online selling, together with the associated outcome of such innovation in terms of business model innovation. The overarching hypothesis is that firms that successfully select and implement online selling have better developed net-enablement capabilities. Further, those firms will innovate their business model. The research to test these hypotheses proceeded in two stages. First, exploratory research accessed both current literature and feedback from academic and professional experts to identify and develop scales and measurements for the net-enablement constructs of the research model. In the second empirical stage, these scales were used to measure capability development and business model innovation in a cross-section sample of Canadian firms. Responses to an online survey were analyzed to test the statistical properties of the scales, and structural equation modeling (SEM) assessed the hypothesized relationships between net-enablement capability for online selling and actual business model innovation. The research contributes to the literature on e-business adoption, and the application of dynamic capability and absorptive capability theories for technology adoption. In particular, it provides empirical support for Wheeler’s NEBIC model for e-business tools selection and implementation. The data confirm that firms with better-developed net-enablement capabilities are more likely to select and implement online selling tools successfully. The data also substantiate the view that online sellers have indeed innovated their business models to incorporate the practical tools of online selling. Practitioners considering extending their market through online sales are advised to assess their net-enablement capability first. The scales developed through this research provide a tool for identifying these important capabilities and routines within organizations. It is particularly important that firms looking to incorporate online selling should evaluate (and develop as necessary) their ability to access new technology; evaluate their strategic options and match them with the benefits of the proposed technology; handle, manage, and implement the project; and reconfigure elements of their business model, i.e., make changes to their product or service and its payment methods. Successful online sellers do not depend on a single factor; rather they develop “net-enablement” capability, a continuous and multi-faceted process of related capability sets that involve all parts of the organization.

Despite potentially increased sales and operational efficiencies, a surprising number of firms have not adopted e-business. Annual surveys of e-business use in Canada and other Organization for Economic Co-operation and Development (OECD) countries reveal significant differences in adoption rates between sectors. The surveys identify product characteristics as a key rationale for not adopting online selling. There are examples, however, of firms in all sectors that have discovered how to use online selling (i.e., through direct retailing, portals, online auctions - or other models). This research identifies the key internal capabilities that let firms implement online selling tools and reconfigure their way of doing business, by innovating their business model, to take advantage of e-business. Wheeler’s (2002) Net-Enabled Business Innovation Cycle (NEBIC) model is a theoretical framework for studying the process of implementing e-business tools as technology innovations for business growth where “net-enablement” refers to a firm’s innovative use of networks connected via information technologies. The NEBIC model suggests four sets of capabilities a firm needs to create value for its customers by utilizing technology: choosing enabling technologies, matching technology benefits with economic opportunities, executing business innovation for growth, and assessing customer value. The model is grounded in dynamic capability and absorptive capacity theories, offering an integrated way to adopt an e-business application, such as online selling, using internal capabilities that management can develop through planning, knowledge acquisition, training, and recruitment. This research is the first to operationalize the constructs in the NEBIC model and increase the understanding of the firm capabilities required to implement online selling as a technology innovation for business growth. The study also extends the NEBIC model by developing a construct to measure the innovation in business models firms need as they implement online selling tools. Data gathered from a national sample of Canadian firms are analyzed to test four hypotheses. These concern net-enablement capabilities, and the selection and implementation of online selling, together with the associated outcome of such innovation in terms of business model innovation. The overarching hypothesis is that firms that successfully select and implement online selling have better developed net-enablement capabilities. Further, those firms will innovate their business model. The research to test these hypotheses proceeded in two stages. First, exploratory research accessed both current literature and feedback from academic and professional experts to identify and develop scales and measurements for the net-enablement constructs of the research model. In the second empirical stage, these scales were used to measure capability development and business model innovation in a cross-section sample of Canadian firms. Responses to an online survey were analyzed to test the statistical properties of the scales, and structural equation modeling (SEM) assessed the hypothesized relationships between net-enablement capability for online selling and actual business model innovation. The research contributes to the literature on e-business adoption, and the application of dynamic capability and absorptive capability theories for technology adoption. In particular, it provides empirical support for Wheeler’s NEBIC model for e-business tools selection and implementation. The data confirm that firms with better-developed net-enablement capabilities are more likely to select and implement online selling tools successfully. The data also substantiate the view that online sellers have indeed innovated their business models to incorporate the practical tools of online selling. Practitioners considering extending their market through online sales are advised to assess their net-enablement capability first. The scales developed through this research provide a tool for identifying these important capabilities and routines within organizations. It is particularly important that firms looking to incorporate online selling should evaluate (and develop as necessary) their ability to access new technology; evaluate their strategic options and match them with the benefits of the proposed technology; handle, manage, and implement the project; and reconfigure elements of their business model, i.e., make changes to their product or service and its payment methods. Successful online sellers do not depend on a single factor; rather they develop “net-enablement” capability, a continuous and multi-faceted process of related capability sets that involve all parts of the organization.

Internet technology (IT) has changed the way information is disseminated, which has led to changes in transaction-making and the creation of new electronic markets. This has also led to the emer-gence of new types of online intermediaries, and new selling mechanisms. Since most online selling involves commodity goods and the discovery of low prices, the design of selling mechanism primarily focuses on the disclosure of price information. Low-price discovery selling mechanisms, however, have caused buyers to shift from one mechanism to another to get the best deals. Online sellers are facing profit pressures as a result. Price information only addresses a portion of consumer needs though. They need information to identify uncertainties that may harm them during transactions. Consumers also search for products and services that fit their individual preferences and are willing to pay a price premium for such offerings. Sellers have to offer additional information and to do decommoditization, or consumers will abandon selling mechanisms that do not match their needs. This dissertation examines these issues in three essays. It explores two online selling mechanisms: online group-buying auctions and a la carte pricing schemes in airline industry. The a la carte pricing is to offer flexible pricing to consumers. The research employs an Internet-based experimental test bed, a single-firm empirical case study, and an econometric model to test the relevant theories. I evaluate the design of online group-buying auctions, where consumers are more uncertain about group-buying as a mechanism for organizing economic exchange. I also evaluate the design of online selling mechanisms in the air travel services industry, where digitally-intermediation has created problems with suppliers¡¦ ownership of their customers and increasing channel conflicts. The results indicate that the dominance of price in consumer purchase decisions can be mitigated by complementary information, as well as value-added product and service information that an online selling mechanism provides. Consumer information requirements are dynamic and inconsistent though. So an effective selling mechanism must identify how to disclose an adequate amount of information to consumer. Some of the new mechanism designs that have emerged have produced a means for sellers to be more effective. My findings suggest that, in addition to price transparency, online selling mechanisms also affect transaction completion uncertainty, and support the expression of personal preferences.

The main topic of this diploma thesis is the complete design of the web application for booking and selling package tours and other related services offered by the travel agency. The first part of this thesis describes the theory basis for the proposition, creation (production) and the implementation of the web applications with the emphasis on the methodology and technology used in this diploma thesis. The second part of the thesis consists of an analysis of current state in the travel agency and this analysis is the foundation of the last part of this thesis which contains the design of the design web application.

Yes / The issues of channel conflict and channel power have received widespread research attention, including Geylani et al.’s (2007) work on channel relations in an asymmetric retail setting. Specifically, these authors suggest that a manufacturer can respond to a dominant retailer’s pricing pressure by raising the wholesale price for a weak retailer over that for the dominant retailer while transferring demand to the weak retailer channel via cooperative advertising. But, is online expansion another kind of strategic manufacturer’s optimal response to a dominant retailer? In this paper, we extend this work by adding a direct online selling channel to illustrate the impact of the manufacturer’s internet entry on firms’ demands, profits, and pricing strategies and on consumer welfare. Our analysis thus includes a condition in which the manufacturer can add an online channel. If such an online channel is opened, the channel-supported network externality will always benefit the manufacturer but hurt the retailers. Consumers, however, will only benefit from the network externality when a dominant retailer is present and will be hurt when both retailers are symmetric. / National Natural Science Foundation of China, Chongqing’s Natural Science Foundation, British Academy