Research questions
Three research questions would be used to derive the three hypotheses for this study. The first research question would require the determination of whether the level of payoff from Information Technology is linked to management styles in the corporations. The second research question would be to determine the effects of the level of Information Technology adoption to the performance levels in terms of payoffs.
The third research question in this study would be to determine the impacts of adoption of electronic marketing on the market value of commodities.
Hypotheses
Hypothesis 1
- H1: The level of payoff from Information Technology is linked to the management styles in the corporations.
- H0: The level of payoff from Information Technology is not linked to the management styles in the corporations.
Hypothesis 2
- H1: The level of adoption of Information Technology determines the performance levels in corporations in terms of payoffs.
- H0: The level of adoption of Information Technology does not determine the performance levels in corporations in terms of payoffs.
Hypothesis 3
- H1: The adoption of an electronic market has an impact on the market value of commodities.
- H1: The adoption of an electronic market does not have an impact on the market value of commodities.
Definition of the dependent and independent variables
The first hypothesis requires the determination of whether the level of payoff from Information Technology is linked to management styles in the corporations. The independent variable in this hypothesis is the management style in the corporation. This is because the researcher will vary this variable.
The researcher will look at the different types of management styles in the different corporation to determine its effects on the level of payoff from information technology. Therefore, the dependent variable would be the level of payoff to the corporations from information technology. The independent variable in this case is the presumed cause of the scenario while the dependent variable is the presumed effect of that cause.
The second hypothesis would be to determine the effects of the level of Information Technology adoption to the performance levels in terms of payoffs. In this hypothesis, the independent variable is the level of information technology adoption in the different corporations. This variable is controlled or manipulated by the experimenter.
The different levels of information technology adoptions will be assessed to determine its effects on the performance of the corporations in terms of the payoff from IT. The dependent variable would then be the performance levels in the firms. This would be determined by looking at the payoffs received from Information Technology. This variable is observed or measured for variation and is assumed that the it is as a result of the variation of the independent variable.
The third hypothesis in this study would be to determine the impacts of adoption of electronic marketing on the market value of commodities. In this hypothesis, the independent hypothesis is the adoption of the electronic market in the corporations. This variable is independent in that it is not dependent on another variable. It is the presumed cause of the effects on the market value of commodities. The dependent variable, on the other hand, is the market value of the commodities. The market value is expected to vary with the situations. It is the presumed effect of the adoption of the electronic market especially where it was not present previously.
Expected relationship between the variables
For the first hypothesis, the expected relationship between the two variables is negative one. The management styles in the corporations may vary but this may not necessarily affect the level of payoff from Information Technology. This is because management styles may not necessarily dictate the management practices in the corporation. Previous studies by Tallon, Kraemer and Gurbaxani (2001) determined the relationship between the management practices and the level of pay off and their results suggested that there was a positive relationship. In this study, the management styles will be studied and the assumption would be that the management styles are not the same as the management practices in the corporations.
The variables in the second hypothesis are likely to yield a positive relationship because the level of information technology adoption may determine the level of performance in terms of payoffs in the organization. The benefits of Information technology to corporations has been studies and it has been determined that it profits the companies if well adopted and in the corporate market, it has been used to improve the effectiveness of their transactions (Loh & Venkatraman, 1992). Other similar studies have also concluded that IT can be used successfully to trade items online (Clarke & Jenkins, 1993).
The variables in the third hypothesis are expected to yield a positive relationship. The introduction of an electronic market into the marketing world is expected to influence the market value or price of the commodities. This is because the electronic market has enabled commodities to be sold easily through the internet. This poses a threat to many companies who have not adopted this technology and this might force them to reduce their prices in order to avoid the steep competition. Since the commodities are also sold much easily and the costs incurred by the trader are reduced, there is likelihood that the traders might cut off the price. However, this is subject to research.
Nature of relationships
The two variables in the first hypothesis are likely to yield a negative relationship and therefore, there may not be either a correlation or a causality relationship. The management styles used in the corporations may not have an effect on the level of payoff from information technology.
The nature of the relationship between the two variables in the second hypothesis is likely to be a correlation. The level of information technology adoption is correlated to the level of performance in terms of payoffs in the organization. The value of the independent variable may vary with the value of the dependent variable hence correlated. The correlation that caused the mutual association may be because of some underlying factors. Therefore, factor analysis might need to be performed to identify the set of underlying factors that would explain the relationships between the correlated variables.
The relationship between the two variables in the third hypothesis is a causality relationship. The effect of the introduction of an electronic market into the marketing world might cause a direct effect on the market value or price of the commodities. The direct factor that causes an effect directly and without the intervention of other underlying factors is what is referred to as causality. The two variables, the independent and the dependent variables, form a causal nexus.
Conceptual framework
Significance of the study to academic literature
The study conducted on these hypotheses would be significant because firstly, it would offer information to the corporate institutions and would be important in the corporate decision making processes. This study would also bridge the gaps that were left by other researchers as they performed other related studies.
Tallon, Kraemer and Gurbaxani (2001) studied the effects of management practices on the level of payoff. They also determined whether the goals of the company help in the achievement of greater payoffs. However, they did not look at the effects that the type of management had on the level of payoff. This study will look at the different types of management adopted in the organizations and determine whether there is a significant difference in the levels of payoffs due to the different types of management styles.
The second hypothesis would also be important to determine whether the level of information technology adoption may determine the level of performance in terms of payoffs in the organization. Lee and Clark (1996) performed a study to determine the barriers that hinder the full adoption of the electronic market system and assessed the resistance and the financial risks of adoption. However, they did not the level of information technology adoption may determine the level of performance of the organization. They failed to determine the level of payoffs from the adoption.
The study would also be significant since it would address the effects of the introduction of an electronic market into the marketing world in terms of altering the market value or price of the commodities. This would also extend on the work done by Neo (1992).
References
Clarke, R., & Jenkins, M. (1993). The strategic intent of on-line trading systems: A case study in national livestock marketing. Journal of strategic Information System, 2(1), 57-76.
Lee, H., & Clark, T. (1996). Impact of electronic marketplace on transaction cost and market structure. International Journal of Electronic Commerce, 1(1), 127-149.
Loh, L., & Venkatraman, N. (1992). Determinants of Information Technology Outsourcing: A cross-sectional Analysis. Journal of Management Information Systems, 9(1), 7-24.
Neo, B. (1992). The implementation of an electronic market for pig trading in Singapore. Journal of Strategic Information Systems, 1(5), 278-288.
Tallon, P., Kraemer, K., & Gurbaxani, V. (2000). Executives’ perspective of the business value of information technology: A process-oriented approach. Journal of Management Information Systems, 16(4), 102-105.