Abstract

This research tests the creation and sustainability of customer value by net enabled enterprises employing customer centric IT systems. Internet based advanced information technologies have moved IT systems beyond the realm of production and operational processes into more customer interfacing functions and these systems have very different dynamics. While empirical research in IS has tested the link of IT capability to superior business value for the firm using accounting based measures, customer perceptions of the value offered by the firm has not been empirically tested yet. We use data from four online home delivery grocery stores to test the creation and sustainability of customer value by these firms. This study uses panel data collected from 304 users of online ordering system across the four home delivery grocers for two consecutive years to test the sustainability effects. Panel data is collected and analyzed to assess customer value created by IT systems after accounting for the other organizational and individual level factors as product quality, service quality (SERVQUAL), and perceived ease of use (PEoU).