The Impact of Business-to-Business e-marketplaces as Extended Media in the Procurement Supply Chain of Airlines

In recent years, a growing number of companies in many industry sectors have decided to include e-Business as an integral part of their strategy to enhance competitive advantage. The airline industry, having always been a great instigator and guarantor for innovative changes, is one of the industries where developments in Information and Communication Technology (ICT) in general have proven to be an inevitable factor of success. Among recent innovative developments are B2B e-Marketplaces, which have been hypothesised to optimise procurement processes and to add significant value in airlines’ supply chains. However, while e-Marketplaces have been analysed in more detail from an institutional perspective, very limited research has been undertaken to date in exploring the e-Marketplace adoption drivers and performance indicators, particularly from a diffusion-of-innovation (DOI) and innovation-organisation-environment (IOE) viewpoint. To address these issues, this research establishes a contingency framework and hypotheses are then developed that are subsequently subjected to empirical testing through quantitative methods. Methodological triangulation has been employed to address weaknesses and bias of using a single research method. Thus, extensive qualitative and quantitative data were collected by means of two survey instruments aiming at airlines (response rate 29%) and e-Marketplaces (response rate 65%). In addition, two explorative case studies were developed to qualitatively interlink the survey findings from both an e-Marketplace adopter and a non-adopter perspective. Results confirm that e-Marketplaces have gained momentum in the airline industry, following the typical S-curve pattern of technology adoption. As expected, e-Marketplaces have secured a relatively high degree of diffusion, with 65% of airlines already having used and e-Marketplace of some sort and 25% being financially involved in terms of ownership. Factors affecting the adoption of e-Marketplaces were investigated. The airline’s strategic classification has an impact on e-Marketplace adoption. 82% of full service airlines have adopted e-Marketplaces, followed by low-cost airlines with 79%, regional airlines with 50% and finally charter airlines with 27%. There is also a significant divide between large and small airlines, the latter of which often adhere to more traditional forms of purchasing. Other drivers or strategic ‘stimuli’ for e-Marketplace adoption in the airline industry include the extent of strategic partnerships, the level of overall ICT sophistication and the level of internet services used. In contrast to theoretically derived expectations, pressures from the business context, the level of resource/information sharing, the extent of outsourcing and joint procurement integration, and the purchasing organisation centralisation/decentralisation could not be confirmed as adoption drivers. In terms of performance indicators, this study confirms that e-Marketplace use is positively related to the overall satisfaction with an airline’s procurement practices and processes. Results suggest that e-Marketplaces do reduce search cost of airlines, mostly in the area of spares and repairs, tools/GSE and office supplies. Other benefits illustrated by the study typically occur in the facilitation of order processes, a higher transparency of suppliers, reduced inventories, product price reductions and a reduction in purchase order costs. Savings from e-Marketplace adoption, which occur more in process costs rather than product costs, tend to exceed the investment costs. However, results indicate that e-Marketplace adoption does not have a direct impact on overall airline performance, but on operational effectiveness and efficiency. The results also suggest that while the e-Marketplace diffusion level is relatively high among airlines, many airlines still make only rudimentary use of all offered services. There are still a number of challenges ahead for e-Marketplace implementation, such as further supplier integration, training and education of staff or the development of further e-Marketplace services, as the technology is often not yet ready to support the range of airline requirements. The primary contribution of the study is to provide an original starting point for a more structured focus to improve understanding of the adoption process and value creation of B2B e-Marketplaces. This foundation will allow for further investigation

Men eat on Mars, Women on Venus? An Empirical Study of Food-Images

Culinary preferences contribute significantly to the sense of ourself [2]. While gender, race, sexuality and ethnicity describe our "major identity", preferences in music, style and food define our "minor identity". However, we find that only certain parts of them can be explained by gender-specific differences in the food consumption behavior, while other parts can be better explained by the media portrayal of food consumption

e-Business in supply chain management

E-business is concerned with the use of the Internet to link companies with their suppliers, customers and other trading partners. As a business concept, it has evolved significantly since its introduction in the 1990’s in parallel with the rapid rate of development of information technology (IT) during this period. Supply chain management (SCM) is fundamentally concerned with integration of activities both with and between organisations. IT plays a crucial role in SCM as a key enabler of supply chain integration (SCI). This chapter sets out the role of e-business concepts in the context of the supply chain challenges faced by firms. It specifically explores the role of e-procurement as an example of how e-business concepts have been applied to one key SCM activity, namely purchasing and procurement. In this context, the chapter examines the nature and evolution of e-marketplaces and goes on to identify key adoption drivers and benefits based on recent research. This research identifies key adoption drivers and benefits but also recognises that there are many barriers that ongoing research needs to address if the potential of e-business is to be fulfilled

Physical and Digital Integration Strategies of Electronic Device Supply Chains and Their Applicability to ETO Supply Chains

The growth in the manufacture and distribution of electronic devices presents a source of continuing innovation. Electronic devices are products that integrate physical forms (i.e. hardware) and virtual forms (e.g. software) to deliver value to customers. These forms are very different from a product design and supply chain perspective, but nevertheless they need to work closely together in order to create value for the customers. For electronic device manufacturers, it is important that processes are in place to facilitate the seamless integration of both forms throughout the engineering, production, distribution and support stages of the product lifecycle. This chapter examines the role of physical and virtual supply chain innovation strategies in electronic device supply chains by exploring the commonalities and differences between the design, manufacturing, and distribution models of digital and physical elements. It also explores to what extent such strategies can be employed for engineer-to-order (ETO) supply chains

B2B E-Marketplace in the Procurement Supply Chain of Airlines: a Strategic Direction for the Future?

With the airline industry experiencing a global economic downturn, B2B e-Business isbecoming more and more the focus of airlines’ strategies. More recently, airlines have studiedintensively the potential of joint-procurement possibilities and have taken measures in creatingconsortia-led B2B e-Marketplaces as mediators for aggregating demand and to facilitate transactions.In academic literature, limited academic research has been undertaken in exploring the value creation of B2B e-Marketplace models in the aviation industry. The aim is to conduct a theoretical analysis to explore whether or not e-Marketplaces have the potential to add value to procurement in the aviation industry. The research focuses on the potential of B2B e-Marketplaces in terms of improving an airline’s competitiveness in its procurement value chain. The theoretical framework adopted supports the identification of barriers to success and critical success factors

ICT Innovation Diffusion in Small Logistics Service Providers: an Empirical Survey

For companies competing in highly dynamic markets, innovation is considered a fundamental component of a successful business as it allows companies to sustain profit margins, sales growth and reduce competitors’ pressures. Information and communication technology (ICT) is essential innovation enablers especially in service companies. The focus of the paper is on the analysis of the role of ICT in innovation processes of small third-party logistics service providers (3PLs). On the basis of quantitative evidence emerging from a recent survey carried out on the Italian 3PL market, the paper analyses how ICT is used to support innovation and the factors the inhibit/facilitate the usage of ICT in such companies. Implications for supply chain innovation management are derived from the research and managerial perspectives

ICT Innovation Diffusion in Small Logistics Service Providers: an Empirical Survey

For companies competing in highly dynamic markets, innovation is considered a fundamental component of a successful business as it allows companies to sustain profit margins, sales growth and reduce competitors’ pressures. Information and communication technology (ICT) is essential innovation enablers especially in service companies. The focus of the paper is on the analysis of the role of ICT in innovation processes of small third-party logistics service providers (3PLs). On the basis of quantitative evidence emerging from a recent survey carried out on the Italian 3PL market, the paper analyses how ICT is used to support innovation and the factors the inhibit/facilitate the usage of ICT in such companies. Implications for supply chain innovation management are derived from the research and managerial perspectives

A New Hub in the Aviation Industry: towards an Integration of B2B e-marketplaces in the Airline Industry

In academic literature, limited academic research has been undertaken in exploring the value creation of B2B e-Marketplace models in the aviation industry. The aim is to conduct a theoretical analysis to explore whether or not e-Marketplaces have the potential to add value to procurement in the aviation industry. The research focuses on the potential of B2B e-Marketplaces in terms of improving an airline’s competitiveness in its procurement value chain. The theoretical framework adopted supports the identification of barriers to success and critical success factors