This research also builds upon findings related to export strategy, export performance and e-commerce. What stands out in the export performance literature is the multiplicity of views with respect to determinants of export performance. Thus far, there is no model of export performance which is generally favoured in the literature. This fact creates an even greater challenge when it comes to integrating e-commerce into a research model.
Export performance studies suggest that environmental determinants of export performance can classified into two categories: internal environmental factors (controllable) and external environmental factors (uncontrollable). Most studies have focused on internal determinants. Internal determinants have been classified according to strategic, organisational or management factors.
Since e-commerce is a relatively new concept, a literature review was necessary to determine the most appropriate definition of this concept. In this study e-commerce is defined as an environment for presenting, trading, distributing, servicing customers, collaborating with business partners, and conducting transactions using electronic technologies.
The impact e-commerce as a global phenomenon can be understood on the basis of Schumpeter’s work early last century. His theory of economic development highlighted the role played by innovative entrepreneurs who sought to enter existing market niches through the introduction of alternative products based on new technological breakthroughs and scientific discoveries. Consistent with his view, e-commerce offers opportunities to innovators and adopters, but also threatens established businesses since they may have difficulty adapting to this rapidly changing environment.
Exporters utilise e-commerce through sales and marketing, transaction processing, and supply and distribution processes. Usually the first e-commerce experience exporters have is in sales and marketing. Exporters typically use the Internet to provide catalogues, promote the company’s products or services, offer online ordering capabilities, allow access to product, performance and price information, answer customer inquires, and gather information on customers, competitors, and the industry. E-commerce may increase sales in international markets through market expansion, brand switching, and relationship marketing. E-commerce may also dramatically cut distribution costs by lowering transaction or inventory costs, bypassing traditional intermediaries, or shifting distribution functions to the end consumer.