Measuring the Readiness of Small and Medium-sized Enterprises to Enter E-Commerce

Subject Areas : Industrial Management

Abbass Toloie Ashlaghi ¹ ( Professor of Industrial Management, Science and Research Branch, Islamic Azad University, Tehran, Iran )
Reza Radfar ² ( Technology Management, Faculty of Management and Economy, Azad University of Science and Research, Tehran, Iran )
Naghei Shoja ³ ( Faculty of Basic Sciences, Islamic Azad University, Firuzkuh Branch, Tehran, Iran. )
Farshid Farokhizadeh ⁴ ( Ph.D. Industrial Management, Faculty of Management and Accounting, Islamic Azad University, Roudehen Branch, Tehran, Iran. )

Received: 2019-05-03 Accepted : 2019-06-22 Published : 2019-04-22

Keywords: System Dynamics, E-Readiness Assessment, Small and Medium-sized Enterprises, E-Commerce,

Abstract :

Given the growing importance of small and medium-sized enterprises and the role that e-readiness and e-commerce development have in reducing their costs and expanding their operations, evaluating e-readiness status for entering e-commerce field is important in SMEs. Therefore, the design of e-readiness assessment models is appropriate to the internal and environmental conditions of organizations and communities with the aim of measuring their e-readiness level and without assessing the electronic readiness of the organization, the activity in the world of the impossible network or its barriers will be very high. In this paper, while introducing a brief overview of the proposed models for assessing e-readiness and their classification, the factors influencing the e-readiness of SMEs in order to enter the e-commerce field have been investigated and identified with a meta-integration approach. Then, in order to better understand the variables that affect this relationship and understand the existing dynamics, using a modeling of system dynamics approach and drawing causal loop diagrams (CLD), was introduced an e-readiness assessment model for SMEs to enter the e-commerce field and finally, simulation was carried out by Vensim software. The two major scenarios of increasing advertising and system quality were evaluated and analyzed as model levers. The simulation results indicate a positive impact of system quality and advertising on the e-readiness of firms, with the difference, the impact of system quality on e-readiness of firms is more than the impact of advertising on increasing e-readiness.

References:

1. Abosadra, S., Radchenko, S., (2006). New evidence on the asymmetry in gasolin price: volatility versus margin? OPEC Review X (3), 125-150.


2. Asplund, M., Eriksson, R., Friberg, R., (2000). Price adjustments by a gasoline retail chain. Scand. J. Econ. 102, 101–121.


3. Bachmeier, L., Griffin, J. (2003). New evidence on asymmetric gasoline price responses. Rev. Econ. Stat. 85, 772–776.


4. Bacon, R.W. (1991). Rockets and feathers: the asymmetric speed of adjustment of U.K. retail gasoline prices to cost changes. Energy Econ. 13, 211–218.


5. Balke, N.S., Brown, S.P.A., Yucel, M. (1998). Crude oil and gasoline prices: an asymmetric relationship? Econ. Financ. Policy Rev. Q1, 2–11.


6. Borenstein, S., Shepard, A. (2002). Sticky prices, inventories, and marke power in wholesale gasoline markets. Rand Journal of Economics 33, 116 139.


7. Chou, K., 2012. Price adjustment in Taiwan retail gasoline market. Int. J. Econ. Financ. 4, 132–140


8. Davis, M. C., and Hamilton, J. D. (2004). Why are prices sticky? The dynamics of wholesale gasoline prices. Journal of Money, Credit and Banking 36, 17–37.


9. Galeotti, M., Lanza, A., Manera, M. (2003). Rockets and feathers revisited: an international comparison on European gasoline markets. Energy Econ. 25, 175–190


10. Godby, R., Lintner, A.M., Stegnos, T., Wandschneider, B. (2000). Testing for asymmetric pricing in the Canadian retail gasoline market. Energy Econ. 22, 349–368.


11. Hakan Berument, M and Sahin, A, Sahin, S. (2014). The relative effects of crude oil price and exchange rate on petroleum product prices: Evidence from a set of Northern Mediterranean countries, Economic modelling, 243-249


12. Jalali Naieni, A. (2009). Investigating the relationship between the price of crude oil and the price of petroleum products in European and American markets. Quarterly Journal of Energy Economics. NO 22.


13. Kirchgassner, G., Kubler, K. (1992). Symmetric or asymmetric price adjustments in the oil market: an empirical analysis of the relations between international and domestic prices in the Federal Republic of Germany. Energy Econ. 14, 171–185.


14. Norman, Donald A., David, Shin (1991). Price adjustment in gasoline and heating oil markets. American Petroleum Institute Research Study No. 60, Washington.


15. OPEC Annual Statistical Bulletin (2000,2004,2008,2014), www.opec.org,


16. Pindyck, R. (2001). The dynamics of commodity spot and future markets: a primer. Energy J., 22, 1-29.


17. Radchenko, S., 2005. Oil price volatility and the asymmetric response of gasoline prices to oil price increases and decreases. Energy Econ. 27, 708–730.


18. Reilly, B., Witt, R. (1998). Petrol price asymmetries revisited. Energy Econ. 20, 297–308


19. Salas, J. M. I. S. (2002). Asymmetric price adjustments and a deregulated gasoline market. Philippine Review of Economics 39, 38–7.


20. Shahraki, J., Moradi, H. (2014). The determinants of the real exchange rate, with emphasis on oil prices for Comparison of exporting and importing countries. Quarterly journal of Energy Economics Studies.40, 65-93.


21. Yearbook of National Iranian Oil Refining and Distribution Company, (NIORDC). http://www.niordc.ir


22.