The identification of e-commerce strategy-making modes provides the perquisite first step towards future research investigating links between these modes and e-commerce performance.

Introduction

Background

   Recent U.S. Census Bureau (2014) figures show that business-to-consumer e-commerce retail sales (herein after called e-commerce) are an important and growing sector of the U.S. economy.  In fact, adjusted U.S. Census Bureau (2014) first quarter 2014 figures show growth in e-commerce for both quarter-to-quarter and year-to-year comparisons.  Looking forward, Forrester, Inc. predicts U.S. e-commerce spending will grow “at a compound annual rate of 9.5 percent from 2013-2018” (as cited in Internet Retailer, n.d.).  Globally, according to eMarketer (2014), e-commerce sales are expected to increase by 20.1% in 2014 to reach $1.5 trillion.

Given the “Great Recession” (United Nations, 2011, p. 2) situation facing the U.S. and global economies, the continued growth of domestic and global e-commerce is good news.  This study takes the position that e-commerce will continue to grow and to be an important sector of the U.S. and global economies.  From academic and practitionerperspectives, research contributing to the identification of effective e-commerce strategies is a valuable undertaking.

Small Firms and National Economies

 Generally, it is agreed that U.S. small firms are an “engine of economic growth and job creation” (SBA, 2010, p. 1) that drives the U.S. economy.  U.S. Government programs like the Startup America Partnership introduced in 2011 (White House, n.d.) provide evidence that U.S. small firms are considered to be a critical component insparking and supporting a vibrant U.S. economy.  Globally, small firms are a “vital ingredient” (OECD, 2004, p. 8) for growing and maintaining healthy national economies.  This study takes the position that small firms will continue to be a significant driver of  economic growth for the U.S. (SBA, 2009; SBA, 2010) and global economies.  Therefore, research leading to improving small firm performance should be an economic priority.

E-commerce in Small Firms

   This study accepts Stansfield and Grant’s (2003) assertion that e-commerce “is of prime importance to small firms in ensuring their stability and future survival” (p. 15).  Given that both e-commerce and small firms are widely acknowledged drivers of future business activity and economic prosperity in the U.S. and globally, research contributingto improving e-commerce performance in small firms is of interest to e-commerce researchers and practitioners.  

About Strategy-making

   Upfront, it is important to note that this study makes a distinction between a process for making strategy, or a strategy-making mode and the strategy content artifact resulting from that process.  Distinguishing strategy process (the how) research from strategy content (the what) research is useful in allowing “a process tradition to develop in the field” (Pettigrew, 1992, p. 6) of strategic management.  Strategy-making in a general business context (herein after called strategy-making) covers a broad range of behaviors describing how a firm goes about making decisions regarding its overarching business strategy; it is about “how strategy actually gets made in organizations” (Hart, 1992, p. 347).  The resulting strategy-making artifact is commonly referred to as strategy content, or simply a strategy.

 Small firm strategy-making modes have been positively linked to firm performance.  As such, research leading to a better understanding of strategy-making is “exceedingly important” work (Verreynne, 2006, p. 209).  Hart and Banbury (1994) suggest that small firm strategy-making processes “are significant predictors of firm performance” (p. 265).  Verreynne (2006) generally agrees with Hart and Banbury (1994) stating that small firm strategy-making modes “may have a profound impact on firm performance” (p.210).  Furthermore, Gibson and Cassar’s (2005) conclusions point to a “general belief” (p. 219) that regular planning leads to higher performance in small firms.