Title: Linking business model and strategy on market performance in Taiwan's e-brokerage business

Authors: May-Ching Ding, Kuang-Wen Wu, Shaio Yan Huang, Sheng-Wen Liu

Addresses: Department of Marketing, Feng Chia University, No. 100 Wenhwa Rd., Seatwen, Taichung, 407, Taiwan. ' Department of International Trade, Feng Chia University, No. 100 Wenhwa Rd., Seatwen, Taichung, 407, Taiwan. ' Department of Accounting and Information Technology, National Chung Cheng University, No. 168, University Road, Min-Hsiung Chia-Yi, Taiwan. ' Department of Marketing, Transworld Institute of Technology, 1221, Jen-Nang Rd., Chia-Tong Li, Douliou, Yunlin, 640, Taiwan

Abstract: This study is the first to investigate firm effect, industry effect and their interaction to explain market performance in a specific industry. Data were collected by phone calls and mail surveys of Taiwan|s e-brokerage firms. Positive and significant interactions were found when full-service e-broker business model aligned with prospector, defender, and analyser strategies had higher and significant explanatory effect on online market share. The results also pointed out that neither firm effect nor industry effect had predicative power or independent effects on online market share. To compete in a virtual world, e-brokers should strive for a full-service business models to create value for their customers and should align with strategies to gain competitive advantages. The fit between business model and strategy determines market performance. In addition, managerial implications and future study are recommended.

Keywords: B2C EC; business-to-consumer; e-commerce; electronic commerce; strategic typologies; market performance; Taiwan; e-brokerage; electronic brokerage; e-brokers; electronic brokers; firm effect; industry effect; prospector strategies; defender strategies; analyser strategies; online market share; virtual market share; internet; world wide web; full-service business models; value creation; competitive advantage; managerial implications; customer relationship management; e-CRM; electronic CRM.

DOI: 10.1504/IJECRM.2010.035968

International Journal of Electronic Customer Relationship Management, 2010 Vol.4 No.3, pp.302 - 318

Published online: 11 Oct 2010 *

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