An understanding of B2B innovation adoption models

Technology has altered the way businesses operate in all contexts. Within a Businessto-Business (B2B) context, technology has changed the way products are ordered, dispatched, and paid for. Furthermore, technology has had profound influences on services, and has altered the way services are delivered (Bitner, Ostrom and Meuter, 2002), particularly with the increased use of self-service technologies (SSTs). There is limited research on the use of SSTs in a B2B context. To this end, this paper will provide an overview to some of the literature pertaining to E-Business in a B2B context, with an overview of various models of B2B Innovation Adoption. E-Business in a B2B context Businesses are increasingly using technology in their business-to-business operations, and as a result, it is important to understand the impact of these technologies on the relationship, business processes and productivity. Trust is widely researched in business-to-business relationships due to its high importance and the fragile nature of B2B relationships (Harris and Dibben, 1999). Another area that has been investigated in great detail is how technology can be utilised in a business-to-business context (Berthon, Lane, Pitt and Watson, 1998), however there has been limited discussion on technological innovations and B2B relationships, particularly in relation to services, rather than physical goods. Businesses need to have effective e-business systems, as they are regarded as keys to technological innovation (Jackson and Harris, 2003). From a B2B perspective, these effective e-business systems can reduce costs and enhance current relationships (Zhuang and Lederer, 2003). The systems can also improve efficiency and effectiveness (Perrott, 2003), enhancing a business' brand and business practices a great deal. In order to implement e-business strategies in a B2B context, existing models must be transformed (Barnes and Hunt, 200 I), altering current ways of doing business. Electronic business has cost benefits, advantages in the market, and value adding. Furthermore, competitive pressures may drive an organisation to utilise electronic business (Perrott, 2005). The development of Internet usage has involved transformations particularly in the area of "expectations amongst companies with regard to value creation within a supply chain" (Baroncelli and Adami, 2003). Due to all the benefits of introducing technology in a B2B context, the use of the Internet in B2B practices is indeed growing. Forrester Research estimates that overall, 90 percent of e-commerce will be generated from the B2B sector, rather than the Business to Consumer (B2C) Sector (Reedy, Schullo and Zimmerman, 2000). In fact, there is a growing trend for some companies to refuse to operate with those not using web facilities in their operations (Reedy, et ai, 2000), indicating the importance of having web facilities in a business-to-business relationship. Organisations are demanding a more effective management of their distribution through using the Internet to assist in ordering stock control and communication. Implementing Information Technology in a business tends to change the value chain from one that is linear to one that is a value network (Carignani and Mandelli, 1999; cited in 8aroncelli and Adami, 2003). This allows businesses to extend their relationships with customers, suppliers, retailers, brokers, co-producers, employees and shareholders, and have a more personalised relationship with them (Kandampully, 2003), the ultimate goal of e-business strategies. Organisational values have been found to impact on trust in business-to-business relationships (Harris and Dibben, 1999). Trust can be established through shared interactions over time (Young and Wilkinson, 1989), and is vital to establishing and maintaining 828 relationships. From a service perspective, trust is essential as a way of reducing perceived risk. Trust also impacts on the choice of technology use in a 828 context. The internetalisation framework indicates the internal and external factors of an organisation operating as an e business. This model also examines the various characteristics that may impact on technology use. This model is included below (refer fig I). INTERNAL FACTORS 1 EXTERNAL FACTORS I-1/(.\1 CHA/(.4CTE1US71CS Internetalisation of the fum CONN1£71ilJ RliLATlONSHII'S (OUlWARD) Size E Commerce 0 Suppliers