Marketing supply chain using B2B buy-side ecommerce systems: Does adoption impact financial performance?

Research suggests that new information technologies can improve the functionality of business processes, leading to improved firm profitability. However, new technologies are not equal in their contributions to a company's bottom line. Further, there is some debate as to whether early adopters of new technology benefit over later adopters. This study examines the financial performance of firms that modify their marketing supply chain by adopting business-tobusiness (B2B) buy-side e-commerce systems. Analyses show that early adopters outperform their non-adopting industry peers in the post-adoption period. Superior performance in adopters' return on assets (ROA) is driven by increases in profit margins rather than by improved asset turnover. The results are consistent with the claim that B2B buy-side improves company performance through lower purchasing and administrative costs. Early adopters of B2B buy-side systems received a competitive advantage over industry counterparts due to greater market transparency and better transactional efficiency.