The business world has been reshaped by the exponential growth in technology leading to the emergence of electronic commerce. The way business is conducted today has been through a fundamental change in the marketing strategies and the mode of conducting sales. E- Commence has made it compulsory for business companies to find ready markets for their goods and attract customers. E-commence activities contribute to broad categories of relationships between the sellers, suppliers and marketers. In considering the e-market places of a nation such as Saudi Arabia, it is imperative to note that Saudi Arabia deals with direct goods .
The relationship between complementary services and service system value
Complementary services include logistics, payments and assurance. The services have also been modified to entail reliable postal and delivery services, absence of a valid government regulation and absence of support from relevant security organizations . The thriving of e-commerce in Saudi Arabia has been challenging due to many aspects involved in the entire venture. Immature complementary services have been held to be a major hurdle. A lot of interest has been generated towards finding a lasting solution by overcoming the said barriers .
The suggestions to improve the complementary services so as to have a direct influence to the service system value creations have been established . In addition, the moderating value of culture is also considered. The creation of such factors and their influencing role can be achieved if only companies shift their dealings. A shift in the focus on how to operate a service instead of focusing on how the goods are to be created is inevitable . The shifting of the attention will be in line with the need to have competent personnel to handle e-commerce transactions. For instance, unlike the earlier trend whereby the physical market had to be created, the new wave has now taken a different turn and companies are compelled to have competent information technology experts so as to address the issue at hand effectively .
The selling of products by companies on the internet calls for skilled Information technology experts with the knowledge and required competence to interact with the internet freely. Therefore, it follows that without the required skill companies will lose profits due to poor approaches by the employee . It is to be borne in mind that the skilled professional can multitask hence eliminating the need for having many employees. The training may be not only to orient the employees to business through the internet, but also to caution on the required guidelines and ethics .
Secondly, the releasing of information by the companies in ecommerce to be in circulation has tremendous positive results. The main importance of offering instructions to those selling products on line is that the desired goals are achieved and both the seller and the buyer get to benefit . In the world whereby ecommerce takes place in the internet, the knowledge of the e-market places is highly unavoidable. The clear instructions are a perfect bridge between the complementary services and the determination to have a service value creation in the e-market places .
The complementary services will call for a sacrifice from the company. A bigger step may be required to create a market place that provides offers and different gifts. Sellers will have a preference on market places that offer gifts to the buyers to enhance the buyer seller relationship and loyalty in the dealings. In the same way as developing a physical market, a prudent company on top of creating the market will further complement the market hence maintaining loyalty through the system .
With a continuous update on the e-market places, the concerned parties will be kept in touch with the dynamic nature of the market. Consumers have a preference on a market that keeps up to date enlightenment. The improved relationship created will be a persistent and determining factor on the popularity. Though a complementary service, without it major strides can not be possibly achieved specifically in the service, system value creation .
Keeping in line with the new trends and having a committed maintenance system of the e-markets is very important. This factor coupled with fast delivery can boost the e-markets in Saudi Arabia to attain greater heights. Arguably, the United States is said to have a streamlined e-commerce . It is also remarkably reliable, and this has been due to the trust build through speedy delivery and also delivery of quality goods. Every consumer embraces a market that offers quality as contrasted from quantity goods. If Saudi Arabia desires to have an e-market similar to that of the United States, sufficient investment and serious embarking on a quality oriented system have to be accomplished .
E-market that offers priority and discount to its customers has an upper hand and a relatively high bargaining advantage over that which does not offer them. The priority just like in the normal market has the effect of making a customer feel appreciated . A reliable service system value has time to link up with customers and offer extra services. The companies in the ecommerce business have to understand that it is only in improved service delivery that a stable value creation system can be enhanced .
Effects of the social environment
Interestingly, the relationship between the complementary services and the service system value is moderated by the social or cultural forces in Saudi Arabia. There is information suggesting that the number of internet users in Saudi Arabia is growing, and the growth of e-markets is expected to be rapid grow. In addition, Saudi Arabia being the biggest personnel Computer purchasers, it acts as a moderator to the service, system value creation .
It has been averred that social environmental sustainability has greatly moderated the growth of e-markets in Saudi Arabia. It has to be observed that many religious and social issues in the Saudi Arabia provide a fertile environment for electronic business . The above said social factors greatly encourage electronic work specifically to women. In such environment, ecommerce thrives since the use of the internet is in all stages of life. The social factors in every country help in laying a ground for growth of the economy. The social scope of the Saudi Arabia’s people is not an exception. The great liking for business by the people of Saudi Arabia has moderated the complimentary services in enabling the availability of service system value .
The growth of system services value is a chain which unfolds from one step to another. The said stages include factors that affect the system service value and those that moderate. It has been established that complementary services create a positive relationship between the service system value and e-market places in Saudi Arabia. There is a prevailing social environment that has a greater liking to business and computers. This has greatly moderated the relationship between the complementary service provision and the service system value creation in Saudi Arabia.
F.Lusch, S. L. Vargo and M. A. Akaka, “Service-Dominant Logic: Toward Reframing Business for Enhanced E-Novation.” E-Novation for Competitive Advantage in Collaborative Globalization: Technologies for Emerging E-Business Strategies. IGI Global, 2011, pp. 76-91. Web. 23 Jun. 2012. doi:10.4018/978-1-60566-394-4.ch006
Lusch, S. Vargo, and M. Tanniru, “Service, value networks and learning,” Journal of the academy of marketing science, vol. 38, pp. 19-31, 2010.
M. Chen and S. L. Vargo, “Towards an alternative logic for electronic customer relationship management,” International Journal of Business Environment, vol. 2, pp. 116-132, 2008.
L. Vargo, P.P. Maglio and M. A. Akaka, “On value and value co-creation: A service systems and service logic perspective,” European management journal, vol. 26, pp. 145-152, 2008.
F. Lusch, S. L. Vargo, and G. Wessels, “Toward a conceptual foundation for service science: Contributions from service-dominant logic,” IBM Systems Journal, vol. 47, pp. 5-14, 2008.
Zhu, M. Leboulanger, and Y. Li, “Cultural differences in electronic marketplaces,” in 2008 international conference on service systems and service management, Melbourne, Australia, 2008, pp. 1-5.
K. Pani and P. Venugopal, “Implementing e-CRM using Intelligent Agents on the Internet,” in 2008 international conference on service systems and service management Melbourne, Australia, 2008, pp. 1-6.
Al-Mutawah and V. C. S. Lee, “Implementing corporate culture fit across networked enterprises—A multiagent co-evolution path approach,” in 2008 International Conference on Service Systems and Service Management, Melbourne, Australia, 2008, pp. 1-6.
Malai and M. Speece, “Cultural impact on the relationship among perceived service quality, brand name value, and customer loyalty,” Journal of International Consumer Marketing, vol. 17, pp. 7-39, 2005.
Edvardsson, B. Tronvoll, and T. Gruber, “Expanding understanding of service exchange and value co-creation: a social construction approach,” Journal of the academy of marketing science, vol. 39, pp. 327-339, 2011.
Mason, “Virtual communities of enterprise value creation potential for regional clusters,” Deakin University, 2012.
Hackney, J. Burn, and A. Salazar, “Strategies for value creation in electronic markets: towards a framework for managing evolutionary change,” The Journal of Strategic Information Systems, vol. 13, pp. 91-103, 2004.
Kenosha, W., “The Business Models of E-Marketplace”,WeijunZheng School of Business University of Wisconsin-Parkside,pp.1-14,2006.
Kamel, K.Omar, and E. H.Aboul, “Emerging markets and e-commerce in developing economies,” Information Science Reference, pp.15-17.2009.
Bijan,“Strategies of ecommerce Success” International Business Publication pp.265-293, 2009.
Ibp, “Saudi Arabia Investment and Business Guide: Strategicand Practical Information,”International Business Publication, pp.7- 16.
S.Inam, “Assessing ECommerce Adoption in the Kingdom of Saudi Arabia: On-line Shopping”Lambert Academic Publishing, pp.21-30,2011.