E-Trade Practices and Performance of Korean Enterprises

Purpose: The purpose of this study is to propose a better alternative method by examining whether the existing study divides the level of e-trade practices into the extent of e-trade and degree of e-trade. In addition, we tried to derive implications by comparing importance-performance analysis’s (IPA s) importance-performance with the important attributes of e-trade. Composition/Logic: Section I provides a background and the goal of the study. In Section II, we examined prior studies related to utilization of e-trade. Subsequently, we drew a research hypothesis based on previous studies. Research design was constructed in Section III; we proposed the research model based on the theoretical background and discussed how to measure. Empirical analysis was conducted by structural equation modeling in Section IV. Section V concluded the study by summarizing the findings and discussed implications. Findings: The extent of e-trade and the degree of e-trade can be considered as sub-factors of the practice level of e-trade. Namely, the model fit-index reflecting the second-order model structure was excellent, which is likely to be applied to future research. In addition, we pointed out the strengths and weaknesses of e-trade of Korean firms through IPA. Specially, we showed a problem in the marketing process in e-trade due to the low level of utilization. Originality/Value: This study extends the theoretical viewpoints of e-trade in that the study integrates the practices of e-trade, which have been divided into the extent of e-trade and degree of e-trade in the prior studies. In addition, by introducing IPA in the field of e-trade, we are definitely presenting the strengths and deficiencies of Korea companies that are conducting e-trade.