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INTERNET RETAIL IN A DEVELOPING COUNTRY: PERFORMANCE MEASUREMENT AND BUSINESS OPERATIONS

Abstract

This study investigates Internet retailers in a developing country. It aims to investigate the characteristic of business profiles and operations, and to describe performance measurement implemented and its use. Internet-based research was adopted by combining a questionnaire email survey with web content analysis to study Indonesian Internet retailers. The results show that the majority of Indonesian Internet retailers are immature, small size, and without store-presence. The business operation practices, such as ordering, payment, and communication, indicate some differences from those in developed economies. Though Indonesian Internet retailers are still immature, they have measured various aspects of business performance. Those measured more performance indicators are likely to use the information more intensively to support decision making. This study has limitations such as the small number of responses, which might prevent the generalization of the results. The findings could be used by local Internet retailers to improve the business operations and performance measurement, as well as global Internet retailers entering Indonesian market to adopt some local operation practices

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