Antecedents and Impact of E-commerce Adoption among New Venture Firms: Evidence from Tourism and Hospitality Industry

Abstract

Newly created ventures face many challenges, of which, successfully competing with rivals is a daunting task. In order to grow, and turn profitable, start-up firms must extensively search for strategies that create and sustain competitive advantage. Adoption of e-commerce is considered as a very potent strategy to beat competitors and generate profits. Taking tourism and hospitality, an information-intensive industry, this study set two primary objectives regarding e-commerce adoption. First, to investigate the antecedents of e-commerce adoption and second, to gather empirical evidences about the impact of e-commerce adoption on such firms. The study was motivated by the paucity of literature on adoption of e-commerce by start-up firms, especially in the tourism and hospitality industry. The empirical results showed that market- and organization-related factors were prime determinants of e-commerce adoption by start-up firms. The study also confirmed the improved performance of tourism and hospitality start-ups as a result of e-commerce adoption.

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