The contribution of goal setting to the success of eCommerce systems among small and medium enterprises in New Zealand

The purpose of this paper is to explore the role of goal setting as contributing factor for eCommerce systems (ECS) success in small and medium enterprises (SMEs). Based on the literature review relative to eCommerce in SMEs, this research postulates that goal setting influence the success of ECS in SMEs. The success of ECS in SMEs is the dependent variable the dimensions of which are identified by using DeLone and McLean success model. The output result of this paper is a conceptual model identifying the relevant dimensions of both success and goal setting and the resultant hypotheses that require empirical research to validate the proposed model. INTRODUCTION While ECS can be regarded as one form of an IS [16], the concept of success is recognized as one of the problematic issues that can be interpreted in many ways Attempts to measure the success of information system (IS) with single or multiple variables have been the focus of many researchers. Very few SMEs actually undertake any formal measure of their ECS performance. In fact the literature does not present any concept of ECS success developed specifically for SMEs. DeLone and McLean [4] Conducted a comprehensive review of IS literature and proposed the concept of an IS success model which has been argued and validated by many researchers. The present study seeks to extend DeLone and McLean IS success model and adapt it for the SMEs setting by identifying and incorporating dimensions of success relevant to SMEs. There appears to be no such study conducted to examine the applicability of this model in an SME setting. However, DeLone and McLean [6] asserted that the selection of success measures should also consider the independent variables being researched, goal setting in this paper. Many researchers have suggested a variety of independent factors that influence the success of eCommerce in SMEs, yet few studies have addressed ones that are related with the success of ECS in SMEs In terms of their goals [23]. This have been investigated in terms of planning [20] and goal alignment [13] as a success factors of eCommerce implementation. This present paper refers ro these two terms as goal setting. The purpose of this paper is to explore the role of one organizational factor, namely goal setting for ECS success in SMEs. Thus, a research question can be articulated as “What is the contribution of goal setting for ECS success in SMEs”? This would help manager/owners assess their eCommerce initiatives by focusing on the dimensions of success for their ECS as identified in this study. ECS SUCCESS MODEL In attempting to structure the myriad of variables associated with the diversity of information systems. DeLone and McLean [4] conducted comprehensive review of IS literature in which they proposed the concept of the IS success model. Their work is still contributing toward a universal model, which many have employed when looking at information system performance [1; 21; 24]. Pitt et al [18] proposed a modification of this model to include a service quality component; Myers et al [17] suggested additional IS impact measures; [24] argued to exclude the usage from the model and used ‘net benefit’ in his characterization of the outcome. These modifications were endorsed by DeLone and McLean with an updated IS success model [5] and adapted the updated model to the measurement of eCommerce systems [6]. While the DeLone and Mclean framework is flexible the dynamics make it very difficult to operationalize its constructs. However, choice of the appropriate dimensions of the success constructs to be able better to realize benefits is a context dependent and “contingent on the objectives of the empirical investigation”. It is also “a function of the independent variable under investigation” [6]. That, makes it applicable for different domains. However for the purpose of this study we look at the profit based SME as the stakeholder of the ECS and the benefit accrued to that SME invested in the system from the perspective of owners /managers whom they ultimately determine the success of their venture. GOAL SETTING Goal setting serves the purpose of establishing a measure for evaluating the success of a business and sets priorities for its management. This will keep management focused on success and away from distractive activities that drain business resources and accomplish little [26]. Although setting up a goal may seem simple, but in precise terms is futile [27] unless all stakeholders are taken into consideration. It is a standard practice for SMEs to engage the service of an IT provider due to the lack of expertise and financial resources and by default, outsourcing their eCommerce strategies [2]. In doing so SMEs need to strategically align their ECS development with eCommerce strategies in synergy with the customer expectations. While every ECS is unique, it is imperative that it matches the well defined business’ goals, the well articulated IT/IS goals, and the well understood customers’ goals. In an eCommerce