Introduction
Factors affecting
In recent years business-to-business
the success of
international Internet marketing (B-to-B IIM)
has received widespread attention. Avlonitis
business-to-business
and Karayanni (2000), Duffy and Dale (2002),
international Internet
Hamill and Gregory (1997), Hoffman et al.
marketing (B-to-B IIM): (1999), Porter (2001) and Quelch and Klien
(1996) conducted in-depth studies to
an empirical study of UK understand those factors that are needed to
enhance B-to-B IIM implementation. They
companies
conclude that organisations need to understand
how to identify the critical factors that affect the
implementation process and address them
effectively to ensure that the promised benefits
can be realised and failures can be avoided.
However, research in business-to-business
Internet marketing is still in its infancy. Most
research on Internet marketing has been either
descriptive or theoretical/speculative. There is a
lack of solid research models to guide future
research in this area. There have been a number
of attempts to identify the CSFs for B-to-B
international Internet marketing (Archer and
Yuan, 2000; Avlonitis and Karayanni, 2000;
Berthon et al., 1996a; Chan and Swatman,
2000; Duffy and Dale, 2002; Furnell and
Karweni, 1999; Honeycutt et al., 1998; Lord,
2001; Lynn et al., 2002; Soh et al., 1997);
however, few of them can provide strong
theoretical or statistical support for the
existence of these CSFs. This may be because
of the exploratory nature of these studies. As
such they deal more with the potential than the
reality of the Internet's impact. Hence, fullscale research conducted in a highly scientific
manner must be undertaken.
To fill this gap various articles, empirical
research, and secondary case studies on B-to-B,
Internet, International marketing, and
information technology were studied. The
findings of these studies identified 21 factors
that have a direct impact on successful
implementation of the B-to-B IIM. These
factors were classified into five categories:
(1) marketing strategy;
(2) Web site;
(3) global dimension;
(4) internal related factors; and
(5) external related factors.
Riyad Eid and
Myfanwy Trueman
The authors
Riyad Eid is a Senior Lecturer in the Marketing Department,
Wolverhampton University Business School,
Wolverhampton, UK.
Myfanwy Trueman is a Lecturer in Marketing and
Innovation at Bradford University, School of Management,
Bradford, UK.
Keywords
Critical success factors, Internet marketing,
Business-to-business marketing, United Kingdom
Abstract
Business-to-business international Internet marketing is one
of the key drivers in sustaining an organisation's competitive
advantage. The challenge for organisations today is to
understand the factors that play a critical role in utilising
Internet capabilities and their implications on business
strategic objectives to enable them to compete successfully
in the electronic age. Proposes 33 critical factors classified
into five categories and validated empirically through a
sample of 123 UK companies. Discusses the significance,
importance and implications for each category and makes
recommendations.
Electronic access
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Industrial Management & Data Systems
Volume 104 . Number 1 . 2004 . pp. 16-30
# Emerald Group Publishing Limited . ISSN 0263-5577
DOI 10.1108/02635570410514061
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Factors affecting the success of B-to-B international Internet marketing
Industrial Management & Data Systems
Volume 104 . Number 1 . 2004 . 16-30
Riyad Eid and Myfanwy Trueman
Poon and Jevons (1997), Hoffman et al.
(1999) and Zairi (2001a, b) all agreed that trust
and confidence between vendor and potential
customer is another critical factor. E-commerce
is not a technology play! It is a relationship;
partnership, organisational and
communications play made possible by new
technology.
Definitions, techniques and discussion on these
factors are described in the following sections.
Further discussion on each category is also
underpinned.
Proposed factors
A number of studies were carried out to identify
those factors most critical to B-to-B IIM
success. Avlonitis and Karayanni (2000) noted
that sales force has a central role to play in the
Internet marketing strategies implementation if
the appropriate training is provided. However
top management team's support is one of the
keys to integrate the Internet effectively with the
strategic marketing plan. Bremer (1996) agreed
that correct planning for training sessions,
management support and staff awareness
programmes are important to B-to-B IIM
implementation.
Chan and Swatman (2000) pointed out other
factors such as supplier and customer
involvement, culture and the use of both the
traditional and online marketing. Cronin
(1996a) added the security factor to the
marketing strategy and culture. Damanpour
(2001) showed the importance of meeting client
demand as necessary to fulfil obligations in
Internet-based marketing. Being flexible when
collaborating with the trading community,
identifying potential valuable partners, thinking
globally and doing business in the Internet time
(speed) are critical factors for the successful
implementation of B-to-B IIM.
Duggan and Deveney (2000) indicated that
the integration between off and on-line
marketing efforts, as well as, customer
acceptance and the language used were also
critical success factors. Furnell and Karweni
(1999) agreed that the development of
successful inter-organisational relationships is
another critical factor, which is based primarily
on the quality and quantity of information
exchanged over the Internet. Gogan (1997)
cited that selecting the appropriate technologies
infrastructure is a key factor for Internet
marketing. Hamill and Gregory (1997)
suggested that well designed Web sites provide
an organisation with a leading edge in the global
market. Herbig and Hale (1997) emphasise that
customer needs must be identified.
Factors categorization
The different critical factors for B-to-B IIM
successful implementation have been grouped
into five related factors categories A, B, C, D
and E as shown in Figure 1.
Research model and hypotheses
The model tested in this research examines how
different CSFs affect B-to-B IIM success.
Figure 2 depicts the research model
and illustrates the propositions tested in this
study.
First, many researchers and practitioners
have increasingly considered factors related to
marketing strategy as a vital component of
successful B-to-B IIM. These include, top
management support, setting the strategic
goals, integrating Internet marketing with
marketing strategy, collaboration (strategic
partners), and deciding the potential audience
are the most important factors related to
marketing strategy for successful B-to-B IIM
implementation (Avlonitis and Karayanni,
2000; Chaffey et al., 2000; Chan and Swatman,
2000; Cronin, 1996b; Damanpour, 2001;
Duggan and Deveney, 2000; Gurau et al.,
2001; Hofacker, 2001; Honeycutt et al., 1998;
Lynn et al., 2002; Naude and Holland, 1996;
Perry and Bodkin, 2002; Porter, 2001; Quelch
and Klein, 1996; Wilson and Abel, 2002). To
see the role of the marketing strategy related
factors in B-to-B IIM success the following
hypothesis is proposed:
H1. Marketing strategy related factors affect
the success of B-to-B international
Internet marketing.
Second, many researchers have considered the
Web site as a crucial component of any
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Volume 104 . Number 1 . 2004 . 16-30
Riyad Eid and Myfanwy Trueman
Figure 1 B-to-B IIM CSFs
H2. Web site related factors affect the
success of B-to-B international Internet
marketing.
Figure 2 Research model
Third, many authors have considered global
dimension related factors as a vital component
of successful B-to-B IIM efforts. These factors
include in-depth understanding of foreign
marketing environment, resources required to
work globally, multilanguage Web site to
successfully reach target customers, culture
consideration, and availability of delivery
channel such as international shipping
(intermediaries-shipping information-charges)
(Chaffey et al., 2000; Chan and Swatman,
2000; Duggan and Deveney, 2000; Gogan,
1997; Hamill and Gregory, 1997; Herbig and
Hale, 1997; Hofacker, 2001; Kotab and
Helsen, 2000; Quelch and Klien, 1996; Samiee,
1998; White, 1997). Thus, the following
hypothesis is proposed:
B-to-B IIM efforts. These include,
well-designed site and effective marketing of the
site are the most important factors that
contribute to success of B-to-B IIM efforts
(Anderson, 1996; Hamill and Gregory, 1997;
Herbig and Hale, 1997; Hofacker, 2001;
Kotab and Helsen, 2000; Lynn et al., 2002;
Quelch and Klien, 1996; Samiee, 1998).
Accordingly, the following hypotheses are
proposed:
H3. Global dimension related factors affect
the success of B-to-B international
Internet marketing.
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Factors affecting the success of B-to-B international Internet marketing
Industrial Management & Data Systems
Volume 104 . Number 1 . 2004 . 16-30
Riyad Eid and Myfanwy Trueman
Fourth, many researchers and practitioners
have increasingly considered factors related to
internal environment as a critical component of
successful B-to-B IIM efforts. These factors
include technological infrastructure,
appropriate internal culture, effective
relationship between the marketing and IS/MIS
department and a well trained sales force that
all contribute to the success of B-to-B IIM
efforts (Avlonitis and Karayanni, 2000; Chan
and Swatman, 2000; Duggan and Deveney,
2000; Gogan, 1997; Lynn et al., 2002; Quelch
and Klein, 1996; Samiee, 1998) Accordingly,
the following hypotheses are proposed:
The aim was to select a population of UK
business-to-business international companies
that use the Internet for their marketing
activities. Unfortunately, there is no database
that contains such companies. In addition,
there are no reliable methods that can be used
to distinguish between international and local
companies. To determine companies that meet
these criteria, a list of business-to-business
Web addresses was obtained from Yahoo
directory, which listed the majority of the
business-to-business Web addresses available at
that time of study, totaling 1,230 addresses. It is
the Web's most popular search engine (Search
Engine Watch)[1]. It is the oldest major Web
site directory, having launched in late 1994.
However, although many authors have
used it to determine the study population
(Avlonitis and Karayanni, 2000; Bennet,
1997; Shama, 2001), this study did not accept
it as it is for many reasons that can be discussed
below:
.
some sites classified as business-to-business
are actually business-to-customer;
.
some companies that are supposed to be
UK companies are only based in the USA;
.
many companies appear more than once
under different titles within business-tobusiness; and
.
some companies have many links on the
directory and therefore are counted more
than once.
H4. External factors affect the success of
B-to-B international Internet marketing.
Finally, many researchers and practitioners
have increasingly considered factors related to
external environment as another key
component of successful Internet marketing
implementation. These factors include, trust,
security, successful relationship, easy and
affordable access to the Internet, and
customer acceptance and all contribute to
successful B-to-B IIM practice (Chan and
Swatman, 2000; Duggan and Deveney, 2000;
Furnell and Karweni, 1999; Poon and Jevons,
1997; Quelch and Klien, 1996; Ratnasingham,
1998; Urban et al., 2000; Wilson and Abel,
2002; Zairi, 2001a, b) therefore the following
hypothesis is offered:
Consequently, without careful modifications
the Yahoo directory may lead to defected
results and destroy the random base for a
research sample.
H5. Internal factors affect the success
of B-to-B international Internet
marketing.
Implementation of companies scanning
Consequently, a companies scanning exercise
was used in identifying and collecting various
companies that appeared in the Yahoo directory
over a specific period of time (1 December
2001-31 January 2002). The actual
procedures involved are discussed in the
following section.
Research methodology
Population and sample
This research has used three basic
characteristics that must be presented in each
company if it is to be selected in the research
sample:
(1) the company should be
business-to-business;
(2) use the Internet for marketing purposes;
and
(3) work globally to sell its products on the
international market via agent, distributor,
or subsidiary.
Population industries
This study planned to obtain responses from
different industries so that generalisation of the
findings could be established. Consequently,
the population comprises the companies
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Volume 104 . Number 1 . 2004 . 16-30
Riyad Eid and Myfanwy Trueman
addressed in the Yahoo directory in six specific
industries:
(1) aerospace;
(2) agriculture;
(3) textile;
(4) chemicals;
(5) computers; and
(6) industrial supplies.
(1) development of the measure from the
literature;
(2) initial pre-test; and
(3) pilot test of the measure.
In this regard, the questionnaire was reviewed
first by six academic researchers experienced in
questionnaire design. They were asked to
provide feedback on the overall design,
particularly the measurement scales. Their
inputs were then considered in improving the
design. Following from that, the questionnaire
was piloted with two B-to-B IIM experts known
to the researcher. The pilot took the form of an
interview where the participant was first handed
a copy of the questionnaire and asked to
complete it and then discuss any comments or
questions he had. The objective of this pilot was
to assess time required to complete the
questionnaire, clarity of instructions, simplicity,
consistency of questions, clear language, and
comprehensiveness. As a result of this pilot,
some amendments were made to improve the
questionnaire. Participants indicated their
agreement using a five-point Likert scale.
Finally, 250 questionnaires were mailed to the
selected organizations. Of the 250 companies, a
total of 161 questionnaires were returned. This
included nine returned not completed with a
label stating ``Gone away ± please remove from
mail list''. A further 24 were returned with a
covering letter explaining why they had not
completed the questionnaire. Most of the
responses indicated that it was not company
policy to participate in surveys or lack of time
due to work pressures. Therefore, the number
of returned completed questionnaires was 128
(including five unusable questionnaires, usable
questionnaires = 123). A summary of the
responses' distribution and rate is:
.
total number of questionnaires distributed
(250);
.
number of completed and returned
questionnaires (128);
.
unreachable companies (nine);
.
declined participation (24); and
.
response rate (58.98 per cent).
Analysis and results
This section presents the statistics and analytic
results of the study.
The response rate was calculated using the
method proposed by De Vaus (1991, p. 99) and
was 58.98 per cent. This high 58.52 per cent
response rate may be explained by several
factors:
.
First, the questionnaire was designed in
such a way that means it takes only 20
minutes to be completed.
.
Second, attempts were made to contact
each organisation up to five times via
e-mails and phone calls before the firm was
dropped from the sample.
.
Third, most companies studied were likely
to perceive their participation in the study
as further evidence of their success
regarding using the Internet for marketing
purposes.
Descriptive statistics
Detailed descriptive statistics relating to the
responding organisations and respondents are
shown in Table I.
Construct validity and reliability
Discriminant validity was assessed using factor
analysis. The 33 items (variables) measuring
the five CSFs in the research model were
subjected to principal component factor
analysis. Eigenvalues and scree plot were used
to determine the number of factors to be
extracted. Moreover, in order to ensure the use
of factor analysis, the Berlett test of sphericity
(BTS) and Kaiser-Meyer-Olkin (KMO) test of
appropriateness were carried out accordingly
(see Table II). The results (the BTS ranged
from 373.055 to 825.768 and the level of
significance at p = 0.000) indicated that the data
is appropriate for the purpose of factor analysis.
Measurement development
In order to develop and validate the instrument,
several steps were taken:
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Volume 104 . Number 1 . 2004 . 16-30
Riyad Eid and Myfanwy Trueman
factor loading higher than 0.35 is considered
statistically significant at an alpha level of 0.05.
Only one item of Web site related factors, real
time on-line interactive elements, has a factor
loading less than the accepted level, so we
decided to ignore it in our further analysis.
The reliability of all constructs was assessed
by the Cronbach alpha reliability coefficient
and exceeded Nunnally's standards for research
(Nunnally, 1978) (see Table III).
This section presents the results of all the
hypotheses tested. These hypotheses can be
expressed in a multiple linear regression
equation as:
Table I Characteristics of the sample
Measure
Items
Frequency Per cent
Position
Marketing manager
Sales manager
Export manager
IT manager
Participation
No
Yes
Number of employees Less than 100
100-500
501-1,000
More than 1,000
Years of Internet use Less than two years
Two to three years
Three to four years
More than four years
Type of industry
Aerospace
Agriculture
Chemical and allied products
Computers
Industrial supplies
Textile
68
32
11
12
27
96
55
46
16
6
22
29
34
38
8
14
8
40
41
12
55.3
26.0
8.9
9.8
22.0
78.0
44.7
37.4
13.0
4.9
17.9
23.6
27.6
30.9
6.5
11.4
6.5
32.5
33.3
9.8
BtoB IIM success ˆ constant
‡B1 marketing strategy related factors
‡B2 Web site related factors
‡B3 global dimension related factors
‡B4 internal factors
‡B5 external factors ‡ :
Statistically, this means that there exist
relationships between the variables and that
they can be appropriately included in the
analysis (Bryman, 1989). As shown the result of
sampling adequacy ranged from 0.767-0.907
which, following Kaiser-Meyer-Oklin measure
of sampling adequacy, reflected high sampling
adequacy.
The 33 items was loaded on the five factors as
suggested using the criteria of an eigenvalue
greater than one, and the extracted factors
account for a range from 60.272-75.667 of the
total variance. A varimax rotation was also
performed. All items loaded on to the expected
factors as they were originally designed. Factor
loadings were all higher than 0.5 on its own
factors. As suggested by Hair et al. (1998), a
To investigate the hypothesis, entering all
variables in a single block, we found that the
proposed model explains a significant
percentage of variance in B-to-B IIM success.
Table IV shows that 78.9 per cent of the
observed variability in the relative advantage is
explained by the four independent variables
(R2 = 0.795, adjusted R2 = 0.789).
Table III Measure of constructs' reliability
Constructs
Marketing strategy related factors
Web site related factors
International dimension related factors
Internal related factors
External related factors
Number of items
Alpha
8
10
5
5
5
0.9249
0.9088
0.8732
0.9187
0.8782
Table II KMO and Bartlett's test
Bartlett's test
KMO Chi-square df Sig.
Marketing strategy related factors
Web site related factors
International dimension related factors
Internal related factors
External related factors
0.898
0.907
0.767
0.863
0.807
738.520
825.768
373.055
443.447
376.726
28
45
10
10
10
0.000
0.000
0.000
0.000
0.000
No. extracted item(s)
Eigenvalues
Per cent variance explained
1
1
1
1
1
5.272
6.027
3.374
3.783
3.454
65.906
60.272
67.489
75.667
69.089
Notes: Extraction method: principal component analysis. Rotation method: Varimax with Kaiser normalisation
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Volume 104 . Number 1 . 2004 . 16-30
Riyad Eid and Myfanwy Trueman
Table IV Model summary
R
R2
Adjusted R2
Standard error of the estimate
0.908a
0.824
0.817
0.4398
Model
1
a
Note: Predictors: (constant), B-to-B IIM barriers, B-to-B IIM drivers, perceived ease of use, perceived compatibility,
perceived relative advantage
To test the equivalent null hypothesis that there
is no linear relationship in the population
between the dependent variable and the
independent variables, the ANOVA in Table V
is used.
Results from Table V shows that the ratio of
the two mean squares (F) was 114.716
(F-value = 109.754, p < 0.001). Since the
observed significance level was less than 0.001,
the four variables influence marketers' attitudes
toward using the Internet for their B-to-B
marketing activities.
To test the null hypothesis that the
population partial regression coefficient for a
variable is 0, t-statistic and its observed
significance level were used. The results are
shown in Table VI.
Results from Table VI indicate that we can
safely reject the null hypotheses that the
coefficients for marketing strategy related
factors (B = 0.273, t = 4.150, p < 0.001), Web
site related factors (B = 0.179, t = 2.849,
p < 0.01), global dimension related factors
(B = 0.261, t = 3.868, p < 0.001), internal
factors (B = 0.140, t = 1.986, p < 0.05), external
factors (B = 0.187, t = 2.704, p < 0.01) are 0.
The beta weights show that marketing strategy
related factors (B = 0.273) have a strong
significant influence on B-to-B IIM success.
Also global dimension related factors
(B = 0.261), external factors (B = 0.187), Web
site related factors (B = 0.179) and internal
factors (B = 0.140) have a significant effect on
B-to-B IIM success.
Multicollinearity between the independent
variables was minimal, as shown by the values
of tolerance that average between 0.304 to
0.382 and VIF that average between 2.621 and
3.285, indicating that the results were reliable.
Discussion
Our findings generally support our conceptual
model. The results give support to the
hypotheses. Consideration of the five broad
Table V Summary of ANOVA table
Model
1
Regression
Residual
Total
Sum of squares
ANOVAb
df
106.162
22.634
128.797
5
117
122
Mean square
F
Sig.
21.232
0.193
109.754
0.000a
Notes: a Predictors: (constant), external related factors, marketing strategy related factors, Web site related factors,
global dimension related factors, internal related factors; b Dependent variable: international Internet marketing success
Table VI Results of regression coefficientsa
Model
(Constant)
Marketing strategy related factors
Web site related factors
Global dimension related factors
Internal factors
External factors
Unstandardized coefficients
B
Standardized coefficients
Beta
t-Value
Sig.
2.959
0.281
0.184
0.268
0.143
0.192
0.273
0.179
0.261
0.140
0.187
74.620
4.150
2.849
3.868
1.986
2.704
0.685
0.000
0.005
0.000
0.049
0.008
Note: a Dependent variable: Internet: perceived relative advantage
22
Collinearity statistics
Tolerance
VIF
0.347
0.382
0.331
0.304
0.315
2.885
2.621
3.021
3.285
3.174
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Riyad Eid and Myfanwy Trueman
(1997), Bremer (1996) and Damanpour
(2001); studies that trading partner
relationships are crucial issues facing the
company in achieving its objective of getting
closer to its customers, the finding of this study,
however, shows that it is of a second degree of
importance. For B-to-B IIM to succeed, large
networked communities comprising business
partners, suppliers, internal personnel and
customers should be established. The findings
suggest that collaboration is a key factor to
support not only marketing activities but also to
transform activities on different parts of the
value chain. Consequently, when planning the
marketing strategy, companies should consider
possible tie-ins and partnerships, both off and
online. Finally, studies of Herbig and Hale
(1997), Hofacker (2001), Hollensen (2001)
and White (1997) confirm the finding of this
study that defining the audience or customer is
one of the primary tasks because it determines
how and when internal and external actors
should be involved. Undoubtedly, target
customer affects many other aspects of the
Internet marketing, from site design to online
marketing techniques. The more specific the
target audience, the more companies will be
able to provide the appropriate information on
their Web sites.
dimensions emerging from this study provides
an indication of what CSFs underlie
implementation of B-to-B IIM. This analysis
confirms the significant positive relationships of
marketing strategy related factors, Web site
related factors, Global dimension related
factors, internal factors and external factors
with the perceived success of B-to-B IIM.
These results are discussed below.
Marketing strategy related factors
Studies of Avlonitis and Karayanni (2000),
Chaffey et al. (2000), Chan and Swatman
(2000) and Weill (1992) confirm the finding of
this study that top management commitment
and support has a critical role in B-to-B IIM
success. Top management's support has been
characterised as an important factor for the
successful implementation of any business
innovation (i.e. the use of the Internet for
B-to-B IIM) (Weill, 1992). The Chan and
Swatman (2000) study addresses this factor in
more detail and shows that the executive level
of management, those having direct supervisory
accountability and who are responsible for the
implementation, are the most crucial element in
the success of the implementation. Similarly,
the study findings support the previous research
that shows that using the Internet in marketing
should be based on clearly defined strategic
goals (Anderson, 1996; Chaffey et al., 2000;
Honeycutt et al., 1998; Naude and Holland,
1996). Companies should decide the strategic
goal of the Internet use on their global
marketing strategy. Similarly, the finding of this
study seem to reinforce the increasingly
accepted view that companies' Internet-enabled
capabilities ought to be employed in ways that
complement and support their traditional
channels (Avlonitis and Karayanni, 2000; Chan
and Swatman, 2000; Cronin, 1996a, b; Duggan
and Deveney, 2000; Gurau et al., 2001;
Honeycutt et al., 1998; Lynn et al., 2002, Perry
and Bodkin, 2002; Porter, 2001; Quelch and
Klein, 1996). The Internet must be part of the
company's overall marketing plan and strategy
± not simply an afterthought. Again, the four
cases illustrate different responses to that factor.
However, while findings of this study support
Chan and Swatman (2000), Duggan and
Deveney, (2000), Lightfoot and Harries, 2003,
Phan and Stata (2002), Poon and Jevons
Web site related factors
Well-designed site and effective marketing of
the site are important tools for companies
aiming to use the Internet for their marketing
activities. However, as supported by Hamill and
Gregory (1997), Herbig and Hale (1997),
Hofacker (2001), Kotab and Helsen (2000),
Poon and Swatman, (1998), Quelch and Klein
(1996) and Samiee (1998) studies, a number of
design characteristics have been identified by
this study as a critical factor contributing to the
success of B-to-B IIM efforts. However, the
study respondents identified the Web site
related factors as a crucial factor in their
strategies to develop their B-to-B IIM activities.
Consistent with the arguments of Hamill and
Gregory (1997), Herbig and Hale (1997)
Chaffey et al. (2000) and Haig (2001) well
designed site has been found to play a critical
role in the success of B-to-B IIM. As noted by
Haig (2001), the most important design
principle is to keep it simple. As business
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Volume 104 . Number 1 . 2004 . 16-30
Riyad Eid and Myfanwy Trueman
is the speed with which a Web page is delivered
to users from the time when it is requested by
clicking on a hyperlink. The length of time is
dependent on a number of factors, some of
which cannot be controlled (such as the
number of users accessing the Internet), but
primarily depends on the bandwidth of the
ISP's connection to the Internet and the
performance of the Web server hardware and
software (Chaffey et al., 2000). Consequently,
companies should do everything possible to
maintain the speed of downloading their Web
page. Finally, the findings of this study support
studies of Bennett (1997), Evans and King
(1999) and Hamill and Gregory (1997) that
effective marketing of the Web site is crucial for
B-to-B IIM to succeed. Therefore, Web sites
must be continually promoted not just when it
is first launched (Evans and King, 1999).
decision-makers generally want to absorb
information on a Web page in as short a time as
possible, text and images should be used with
strict restraint throughout a Web site. Similarly,
easy to use site (usability) is another design
criterion that has been found to affect B-to-B
IIM success. Without adhering to the principles
of usability it will be more difficult for a B-to-B
site to achieve its objectives. As discussed by
Chaffey et al. (2000) and Haig (2001), easy to
use site (usability) is even more significant for
B-to-B sector than they are for companies
targeting the consumer market. This is because
business decision makers generally have less
time on their hands than users surfing the Web
at home. The findings also confirm the findings
of Evans and King (1999) and the argument of
Herbig and Hale (1997) that creating a clear
Web site, organized and easy to navigate pages
to allow smooth movement around the site, is a
crucial element in designing a Web site.
Consistent with the findings of Evans and King
(1999) and Hamill and Gregory (1997), the
findings of this study show that companies must
have up to date sites. In other words,
information must be as current as possible with
regard to product specifications, prices and
links. This is also a way to encourage users to
come back to visit the site. Accurate site is
another criterion that has been found to have a
critical effect on the quality of the Web site.
This supports the arguments of Hamill and
Gregory (1997) that the information that is
seen as biased will not be taken seriously and
will have a negative effect on company image.
The findings also support the argument of
Ghosh and Dou (1998), Haig (2001), Hamill
and Gregory (1997), Herbig and Hale (1997)
and Hoffman and Novak (1995) that
informative site is a critical factor for Internet
marketing. B-to-B companies should provide
information that will be desired by different
needs to encourage a mix of nationalities and
cultures. They should take advantage of the
highly interactive nature of Web sites by
recognizing that Web site users are much more
active acquirers of information. As supported
by Chaffey et al. (2000), Evans and King
(1999) and Hamill and Gregory (1997) studies,
speed (download) site has been found to have a
critical effect on the quality of the Web site. The
importance measure in relation to performance
International dimension related factors
Although the opportunity to achieve sales to
new overseas markets is often used to champion
the use of the Internet by businesses, our
findings highlighted varieties of critical factors
that should be considered to gain such
opportunity. Consequently, many factors
should be considered before targeting an
international market. However, the findings of
this study is different from that of Bennett
(1997), Berthon et al. (1996b, c), Mehta et al.
(1996) and Vescovi (2000) theoretical views,
but are the same as Hofacker (2001), Quelch
and Klein (1996) and Samiee (1998) views that
the mere existence on the Internet does not
mean anything internationally. Consistent with
Hofacker (2001), Quelch and Klein (1996),
Samiee (1998) and Wood and Robertson
(2000) studies, in-depth understanding of
foreign marketing environment has been found
to play a critical role in B-to-B IIM success.
However, while Hofacker (2001) and Wood
and Robertson (2000) focus on the political
climate, the level of economic development,
infrastructure, legal system, trade regulations
between countries and the package delivery
options, Samiee (1998) focuses on other
planning and management considerations such
as local product standards, target market
pricing and competitive factors, export currency
and payment issues, customer support and
service requirements. However, it is clear that
24
Factors affecting the success of B-to-B international Internet marketing
Industrial Management & Data Systems
Volume 104 . Number 1 . 2004 . 16-30
Riyad Eid and Myfanwy Trueman
Palumbo and Herbig (1998), it is important to
design a logistical system that allows a company
to deliver its products across nations efficiently
and inexpensively before soliciting orders from
abroad. Furthermore, Poon and Swatman
(1998) state that Web sites should clearly
indicate shipment costs to each country to
which delivery is available and provide
information on how the products are shipped
and arangements taken to ensure their quality
on arrival.
access to resources plays an important role in
determining the sophistication of Internet
usage. Therefore, companies' resources play a
critical role in B-to-B IIM efforts. However,
while Mehta et al. (1996) see that Internet
provides a level playing field for the small
company vis-aÁ-vis the large company in an
international market, Arnott and Bridgewater
(2002), Kotab and Helsen, 2000, Quelch and
Klein (1996) and Samiee (1998) agreed that
large firms still enjoy a substantial competitive
advantage because of larger resources and more
visibility among prospective customers
worldwide. Furthermore, Arnott and
Bridgewater (2002) found that smaller firms are
using significantly fewer Internet tools of any
type than their larger counterparts. This may be
explicable by resource arguments. Moreover,
studies of Hofacker (2001), Wilson and Abel
(2002), Kotab and Helsen (2000) and Quelch
and Klein (1996) confirm the finding of this
study that language and communication is
generally playing a big challenge for companies
who use the Internet for their B-to-B IIM.
Kotab and Helsen (2000) address this factor in
more detail, and show that by 2005, 57 per cent
of the Internet audience will speak a language
other than English. Finally, consistent with the
findings of Quelch and Klein (1996), Samiee
(1998), Simeon (1999) and Wood and
Robertson (2000), culture was found to have a
crucial role in B-to-B IIM. This could be a
confirmation of the idea that a company's
approach to attracting, informing and
positioning will be greatly affected by the social
and cultural environment in which it operates
(Simeon, 1999). In other words information
concerning the subtleties of a specific
international market is desired. This includes,
as discussed by Wood and Robertson (2000),
insights into similarities and differences of a
market's culture relative to one's home market.
Consequently, companies have to study the
foreign marketing environments to assess the
advantages of their own products and services.
As supported by Palumbo and Herbig (1998),
Poon and Swatman (1998) and White (1997),
delivery channel is identified by this study as a
critical factor contributing to the success of
B-to-B IIM efforts. Thus, the Web page that
promotes the company's products should show
where they can be acquired. According to
Internal related factors
Technological infrastructure, internal culture,
relationships between the marketing and MIS
departments, sales force and training
programmes are important internal tools for
companies aiming to establish the B-to-B IIM
practice. Technological infrastructure, which
includes computer literacy, Internet-related
software and availability and standardisation of
equipment (for access and services), is required
to reach the stage of information integration.
Internal culture has a major role in enabling or
disabling implementation efforts. Relationship
between the marketing and MIS departments
helps the implementation of the Web-based
system. Sales force should be highly qualified
and trained to be able to take advantage of the
Internet capabilities. Finally, training
programmes affect the understanding of the
system and technologies, which in turn lead to
greater acceptance of B-to-B IIM
implementation. However, the entire internal
factor comes on the second or the third level of
importance. This may be interpreted by the fact
that companies that use the Internet for their
marketing purposes are supposed to be
prepared internally before using it.
Similar supporting findings can be drawn
from several studies. Consistent with Naude
and Holland (1996), Phan and Stata (2002),
Samiee (1998), technological infrastructure is
identified by this study as a critical factor
contributing to the success of B-to-B IIM
efforts. However, the infrastructure of Internet
marketing can be built on the existing
technology (Phan and Stata, 2002). Anderson
and Choobinen (1996, p. 127) summarised
these elements as a viable worldwide network, a
relational database of products photos and
graphs, computers, and personnel resources.
25
Factors affecting the success of B-to-B international Internet marketing
Industrial Management & Data Systems
Volume 104 . Number 1 . 2004 . 16-30
Riyad Eid and Myfanwy Trueman
never be eliminated. However, the sales force
must understand what the Internet does well
and then structure their customer support
around this technology in order to better serve
their customers. At the same time, the sales
force must focus on activities that add value to
their customer relationship in ways the Internet
cannot. Finally, companies must ensure that all
of their employees understand the corporate
Web strategy and must be aware of the Web
site's content. However, the findings of this
study support the findings of Chan and
Swatman (2000), Duggan and Deveney (2000),
Lynn et al. (2002), Samiee (1998) and White
(1997) that training programmes, which align
with the Internet strategy for the employees are
very important for B-to-B IIM.
The internal culture dimension in B-to-B IIM
has a major role in enabling or disabling
implementation efforts. Organisational culture
influences the organisation's ability to adopt to
change that is required for the effective use of
the Internet and existing culture might contain
beliefs and values that are often no longer
appropriate or useful in the new environment of
doing business. Therefore, companies must
understand and conform to the new values and
the communication style that are brought by the
Internet (Chan and Swatman, 2000; Duggan
and Deveney, 2000; Samiee, 1998; White,
1997). Doing business on the Internet is much
like doing business in any foreign country: the
key to success is understanding, appreciating,
and honouring the cultural protocol of the
company as well as the country with which the
company is dealing (Jones, 1996, p. 30). The
relationships between the marketing and MIS
departments cannot be overemphasised.
Technological change, due to the Web, is
forcing a paradigm shift within IS/MIS
department. The Internet opens up a new stage
of cooperation between the marketing and MIS
departments. Studies of Bennett (1997) and
Lynn et al. (2002) support this finding.
However, the externalisation wrought by
Internet computing will drive IT and marketing
together. The marketing department must build
strong relationships between itself and the
company's main line of business, including the
IS/MIS department (Lynn et al., 2002).
However, there are two points of view regarding
the role of the sales force. To many, Internet
technology facilitates the communication
between sales force and customer and provides
much greater and easier access to information
that can add significant value to the
relationship. On the other hand, many sales
professionals feel that Internet technology can
maintain the current level of sales and increase
profits by eliminating a portion of the sales
force. However, consistent with the findings of
Avlonitis and Karayanni (2000), Bondra and
Davis (1996), and Kotab and Helsen (2000),
the findings of this study support the first point
of view that sales department and sales force
have a central role in the successful
implementation of the Internet marketing
strategies for industrial organisations. Most
respondents indicated that salespeople would
External related factors
This study also identifies several external
factors for success. As mentioned earlier, for the
Internet customers, trust, security, successful
relationship, easy and affordable access to the
Internet, and customer acceptance all
contribute to successful B-to-B IIM practice.
The mean scores for all the external factors are
in the upper half of the distribution. However,
while customer acceptance, easy and affordable
access to the Internet and successful
relationship are of the first degree of
importance, security and trust are of a second
degree of importance.
Consistent with Hoffman et al. (1999), Mayer
et al. (1995), Ratnasingham (1998), and Urban
et al. (2000), an environment of trust has to be
established in order to have a successful B-to-B
IIM. However, this is not necessarily because of
a lack of confidence in the security technologies
themselves, but because, in many cases, people
are not sufficiently aware of the possible
protection that exists (Furnell and Karweni,
1999). Urban et al. (2000) discuss this point in
more detail and they found that Internet trust
could be divided into three stages; trust in the
Internet and the specific Web site, trust in the
information displayed, and trust in delivery
fulfillment and service. Similarly, as supported
by the findings of Evans and King (1999),
Furnell and Karweni (1999), Honeycutt et al.
(1998), Ratnasingham (1998) and Samiee
(1998), security in placing orders and in
providing confidential data is essential to the
26
Factors affecting the success of B-to-B international Internet marketing
Industrial Management & Data Systems
Volume 104 . Number 1 . 2004 . 16-30
Riyad Eid and Myfanwy Trueman
means that companies should use their own
resources to solve the connectivity problem.
Intel, for example, tested the connectivity with
customers in the real production environment.
Because performance can vary significantly in
different countries, Intel went the extra miles to
bring customers' connection up to the global
standard (Phan and Stata, 2002). The reactive
approach, on the other hand, suggests that
companies should wait until these countries
invest in better telecommunication
infrastructures before they can take full
advantage of the opportunities the Internet
offers for global commerce (Palumbo and
Herbig, 1998). Finally, customer acceptance is
one of the critical factors that has been cited in
many studies (Chaffey et al., 2000; Chan and
Swatman 2000; Cronin, 1996b; Phan and
Stata, 2002) and has been found on this study
to have the gratest importance within the
external related factors (M = 4.2439). However,
the findings of the study support the argument
of Chaffey et al. (2000) that customer
orientation is one of the most important factors
in achieving a successful Internet marketing.
Therefore, companies should use different
marketing research techniques to find out the
needs of the site audience.
successful efforts of B-to-B IIM. Furnell and
Karweni (1999) found that if more known
about the security features employed on the
Internet then it will encourage significantly
more people to use it. Consequently,
companies should contain comprehensive
information for customers regarding security
and privacy policy. Ratnasingham (1998)
further divided the Internet security into two
significant areas that affect the Internet
commerce globally; Internet security and
transaction security. The former deals with the
network, system and applications components
of the electronic commerce solution, while the
latter addresses the requirements for secure
electronic commerce transactions. The finding
of this study seem to reinforce the increasingly
accepted view that Internet companies are
required to develop more responsive and deeper
and broader relationships with customers,
suppliers and distributors to increase the
success level of their Internet marketing efforts.
(Furnell and Karweni, 1999; Naude and
Holland, 1996). The strategic implementation
of the Internet depends on effective on-line and
off-line relationships with customers, suppliers
and distributors. In order to achieve those
effective relationships, companies have to use
databases in order to acquire an understanding
of the individual customer's needs and develop
an interactive Web site involving real customer
relationships (Sparkes and Thomas, 2001).
However, with electronic database(s) on
current and prospective customers' needs,
B-to-B companies could provide better targeted
and more tailored service. The previous studies
suggest that customers who experience such
(Internet-enabled) customised service often
return to continue the already initiated online
relationship (Hoffman and Novak, 1996; Poon
and Jevons, 1997; Quelch and Klein, 1996).
Easy and affordable access to the Internet
(connectivity) is another factor that has been
found to affect the success of B-to-B IIM. This
finding supports the previous studies of
Palumbo and Herbig (1998), Phan and Stata
(2002) and Samiee (1998). Companies should
not expect to find across nations the same easy
electronic access that exists in USA for
example. However, companies have two
options regarding that problem, the proactive or
the reactive solution. The proactive approach
Implications
The findings discussed above have a number of
implications for management theorists. The
critical success factors put forward in this study
serve as building blocks for the development of
a holistic conceptual theory dealing with B-to-B
Internet usage. However, this study is
considered as one of the first studies to
suggest and validate empirically those factors
that play a crucial role in the success of B-to-B
IIM (Eid et al., 2002). It also provides scope for
academic theorists to operationalise the concept
of CSFs in B-to-B IIM. This involves more
than including B-to-B IIM and CSFs as a topic
or chapter in a text. Rather, the roles of these
marketing approaches in organisations and their
complementary nature should be recognised.
This study has potential for managerial
application in the adoption and use of the
Internet for marketing purposes. It provides
useful guidelines in the form of the critical
27
Factors affecting the success of B-to-B international Internet marketing
Industrial Management & Data Systems
Volume 104 . Number 1 . 2004 . 16-30
Riyad Eid and Myfanwy Trueman
Another possible area to develop is the
quantification of these CSFs into an ``index of
practice index'' in a company to determine the
level of performance on a time-based approach,
such as year on year. The results from the index
could pinpoint areas that need attention and
improvement. Finally, the area of Internet
marketing is developing very rapidly. Electronic
commerce applications will undoubtedly affect
many business processes. Therefore, it would
be interesting for researchers to explore how the
application of EC technologies, such as the
Internet marketing, will be integrated with
other applications such as enterprise resource
planning (ERP) and customer relationship
management (CRM) which is an information
industry term for methodologies, software, and
usually Internet capabilities that help an
enterprise to manage customer relationships in
an organised way (Xu et al., 2002).
success elements and factors that can engender
success in B-to-B IIM efforts. From this study
practitioners can derive a better understanding
of the activities that are undertaken by the
organisations, and how the way these activities
are being dealt with can result in different forms
of results. The factors proposed by this study
should also enhance the current practice of
B-to-B IIM. While the focus on Internet
research has emerged as a reaction to the
technological developments and IT focus, this
study takes a balanced perspective and develops
further a detailed understanding of major
components and their sub-elements that have
to be considered together.
Conclusions and recommendations
This research provided a comprehensive
analysis of the CSFs for B-to-B international
Internet marketing efforts in an organisation. In
doing so, it has contributed to the cumulative
body of research in both CSF concept and
techniques and in research on using technology
(i.e. Internet) for marketing purposes. The
results from a survey conducted on CSFs for
B-to-B IIM in UK B-to-B companies have been
presented in this paper.
However, before going global by the Internet
a company should make some marketing
preparations and redefine its organisation, since
the Internet environment has changed the rules
of traditional business. These important
marketing preparations are the critical factors
for successful B-to-B IIM and include five basic
dimensions:
(1) marketing strategy related factors;
(2) Web site related factors;
(3) global dimension related factors;
(4) internal factors; and
(5) external factors.
Note
1 http://searchenginewatch.com/links/major.html
(accessed 25 October 2001).
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