Analysis of the Viability of the LexDoBusiness Collaborative Platform
Hélder Azeredo
1 a
, José Luís Reis
1,2 b
and Agostinho Sousa Pinto
1 c
1
CEOS.PP, ISCAP, P. PORTO, Rua Jaime Lopes Amorim s/n, S. Mamede de Infesta, Portugal
2
ISMAI, Maia University Institute, CEDTUR/CETRAD, Av. Carlos Oliveira Campos, Maia, Portugal
Keywords: Digital Transformation, Legal Business Plan, Digital Law, Collaborative Platform, Relational Marketing.
Abstract: The objective of this work is to validate the viability of the LexDoBusiness collaborative platform project
with the main stakeholders. Considering that the LexDoBusiness project should address several issues,
including digital transformation, that brings together several services essential to its success, such as legal,
accounting, tax and technological services, this work, regarding the research methodology, uses Design
Science Research because it is considered the most appropriate for this project, which had the external
collection of secondary data present in the platforms of INE, RACIUS and PORDATA, as well as the
collection of primary data through a semi-structured survey addressed to clients of a network of lawyers and
potential clients. The LexDoBusiness value proposition is the personalization of its services and in the
relationship with its customers, as the permanent support, offering in a single platform, the qualification of
entrepreneurs, support in different areas such as legal and conflict mediation, marketing, accounting and tax,
as well as the IT area with the development and hosting of the company’s website. Clients will also be able
to check anywhere and at any time the status of the resolution of their case, the procedural costs, fees,
documents and invoices. The results of the questionnaire, confirmed the research problem initially formulated
that most clients prefer to hire lawyers with physical offices, which led the business plan to take this preference
into consideration rather than the provision of legal services exclusively online without neglecting the
economic and financial viability of the project.
1 INTRODUCTION
LexDoBusiness is a project based on a collaborative
platform that aims to aggregate a set of services,
associated with the following areas: legal, accounting
and fiscal, marketing, web development, conflict
mediation and training (Azeredo, Reis and Pinto,
2020). This work presents some aspects related with
the validation and viability of the project.
To achieve the objectives of this work it was
necessary to use the primary data research through a
questionnaire to validate the research problem. These
data together with the external secondary data
collected in the platforms of INE, RACIUS and
PORDATA allowed to outline the best strategy for
LexDoBusiness, having chosen to use the Blue Ocean
strategy because it is intended to create a completely
new business, where it brings together several
a
https://orcid.org/0000-0002-5418-877X
b
https://orcid.org/0000-0002-0987-0980
c
https://orcid.org/0000-0003-1454-030X
services in a single platform believing that only in this
way will better serve the customer and consequently
achieve success.
In this document also presents a scheme of how to
apply the three cycles of Hevner DSR (2007) in a
business plan that has as reference the base structure
of IAPMEI (2016a).
This paper is organized in seven sections. The
first section is the Introduction. In the second section
called Research Problem where the research context
is presented. In the third section the strategy is
presented. In the fourth section the work plan is
discussed. In the fifth section the application of the
three Hevner cycles included in the Designer Science
Research methodology is presented. In the sixth
section the business plan is presented. Finally, in the
seventh section the conclusions are presented.
Azeredo, H., Reis, J. and Pinto, A.
Analysis of the Viability of the LexDoBusiness Collaborative Platform.
DOI: 10.5220/0010001101650172
In Proceedings of the 17th International Joint Conference on e-Business and Telecommunications (ICETE 2020) - Volume 3: ICE-B, pages 165-172
ISBN: 978-989-758-447-3
Copyright
c
2020 by SCITEPRESS Science and Technology Publications, Lda. All rights reserved
165
2 RESEARCH PROBLEM
Based on the literature review with a concept matrix,
and some relevant aspects associated to a business
plan, like digital transformation, digital marketing,
customer relationship management, etc. (Azeredo,
Reis and Pinto, 2020) and considering the object of
the study, which is the evaluation of the degree of
acceptability of contracting legal services exclusively
through an online platform, the research problem was
defined: verifying whether clients prefer to hire
lawyers with physical offices.
In order to verify the research problem, the online
bibliographical survey (Azeredo, Reis and Pinto, 2020)
was used again to validate the variables that will be
used in the questionnaire. However, considering the
specificity of LexDoBusiness it was not possible to
find relevant literature that would scientifically support
the questionnaire that was disclosed.
Thus, it will be analysed the several components
of LexDoBusiness model, as well as the dimension
related to the aspects and services considered more
relevant by the potential users of the platform, as well
as the degree of acceptance of legal services
exclusively online.
This analysis is justified considering that the legal
sector is traditionalist in contrast with what
LexDoBusiness intends to be. For this reason, the
intention is to understand whether clients are willing
to contract legal services via the web and to what
extent the digital transformation has influenced
clients seeking, for example, a lawyer.
3 STRATEGY
Defining a strategy is important because it will work
as a guide, a plan to follow, a way of thinking about
the future.
LexDoBusiness will adopt the Blue Ocean
strategy W. C. Kim e Mauborgne (2016) because it
intends to create a completely new business, where it
congregates several services in a single platform
believing that only in this way it will better serve the
customer and consequently achieve success.
3.1 Competitors Analysis
Regarding the competition, there are no direct
competitors in Portugal, since there is no known
platform that brings together the range of services of
LexDoBusiness, in a single online platform, namely
the area of information technology, accounting, tax
and legal, committed to training entrepreneurs who
want to transform their idea into a successful
company, with monitoring throughout the life cycle
of the company.
In relation to the indirect competition of
LexDoBusiness is dispersed by areas and comes from
three distinct origins. First, there is a large number of
professionals who work in the above-mentioned
areas. There is also strong competition from
advisories that are prohibited in Portugal, but allowed
in Brazil and, finally, there is the possibility of some
services being performed by the interested parties
themselves, or to whom they delegate the task.
3.2 Blue Ocean - LexDoBusiness
LexDoBusiness aims to offer something of value
above what already exists for a specific target
audience that has not yet been well attended. To
achieve this goal, the critical success factors of
LexDoBusiness are presented:
Integrated solution with wide range of services
(convenience);
Follow-up in the life cycle of the companies:
Creation-Capacity-Insolvency;
Monitoring system of processes and services;
Training, online information. Access to e-
books and webinar;
Facilitated and international payment system;
Customer support (365 days/24h);
Personalization of service by qualified
professional (365 days/24h);
Competitive price;
Existing partners: Veritá Tecnologia, a network
of 130 lawyers throughout the country, Italy
and Brazil;
Requirement of qualified human resources;
Office Mobility: rental of space at the hour to
serve the client in his area of residence.
To obtain value innovation and to enable the
creation of a new value curve, the following factors
must be reduced or raised from the industry standard,
eliminated as indispensable, and created because the
industry never offered:
It is necessary to reduce costs with office rentals
and transportation, encouraging the customer's
option for online consultation;
It is necessary to increase the network of
partners, seeking to create links with Chambers
of Commerce and trade associations, business
incubators, universities, IEFP, etc.
It is necessary to create the online platform,
CRM, operational marketing plan, digital
E-BDT 2020 - Special Session on E-Business and Digital Transformation
166
marketing plan and create a network of partners
accountants and tax advisers.
Considering the results of the questionnaire, it is
necessary to assess the reasons why clients do
not prefer to contract legal services online and
to alleviate this problem so that the option for
online is preferred.
3.3 Value Assessment Matrix
The value assessment matrix is a graphical
representation of a company's relative performance
across industry factors in the competition. A strong
value curve has focus, divergence, as well as a
convincing slogan. The value assessment matrix
serves to present the current market situation,
showing where the industry competes and what
factors the competition currently invests in. The
horizontal axis in the value assessment matrix shows
the range of competitive and investment factors in an
industry, while the vertical axis captures the level of
supply buyers receive across all of these key
competitive factors W. C. Kim e Mauborgne (2016).
The following factors have been scored from 0 to
4 to categorize competing companies:
Partners: number of partners the company
relates to;
Integrated Solution Convenience: number of
services available on a single site or platform;
Mobile Office: level of the company's ability to
meet its clients;
Range of Services: number of services the
company provides;
Monitoring of Companies: level of capacity
that the company has to support its clients and
accompany them throughout the life cycle of the
company;
Services/processes Follow-up: online platform
where the steps taken by LexDoBusinesss are
registered in an online database, with access by
the customers, in order to follow the status of the
contracted service at anytime and anywhere.
Training: level of capacity to provide training
and capacity building to its customers;
24 Customer Service: level of capacity that
companies have to provide assistance to their
customers 365 days a year, 24 hours a day;
Personalization: level of capacity / freedom
that the company offers its clients to choose the
most appropriate services to their needs;
Internationalization: level of capacity to
internationalize companies.
The main indirect competitors were identified,
and a value curve was drawn, in order to understand
to what extent LexDoBusiness differentiates itself
from others. When observing Graph 1, it is easy to
verify that the line that represents LexDoBusiness,
does not coincide with the lines of the analyzed
competitors, concluding that, according to the
mentioned competition factors, the business model
that this project proposes is innovative.
Graph 1: Value Curve LexDoBusiness.
3.4 Customer-entrepreneur Investment
The investment on the part of the client, in order to
transform his idea into business, will depend on the
number of services he will hire from LexDoBusiness,
and on the degree of complexity in putting it into
practice. Thus, LexDoBusiness puts its professionals
at the disposal of the customer who needs a
personalized service and to his measure.
At the same time, the customers can choose one of
the four pre-defined plans, which gives access to a set
of consultations and all the platform functionalities.
3.5 Price Strategy
Pricing services can be a complicated task
considering their characteristics of intangibility,
perishability, heterogeneity, simultaneity and also the
client's participation in the process of providing
services (Kotler and Keller, 2017).
In the case of LexDoBusiness, determining the
price of its services becomes even more difficult if we
consider that it is a new platform that brings together
several services in one place. These services are
already complex and time-consuming to provide,
such as legal, accounting and tax services.
However, it was possible to determine a price based
on the added value that the product will offer our
clients, without neglecting all the costs associated
with production, marketing and distribution.
Therefore, LexDoBusiness will use a value-based
pricing strategy (Kotler and Keller, 2017) and present
Analysis of the Viability of the LexDoBusiness Collaborative Platform
167
to its clients four service plans. In all of them, the
client will have access to all the existing services in
the platform, only distinguishing themselves in
relation to time and number of consultations with
professionals, namely lawyers, conflict mediators,
accountants, tax advisers, marketing experts,
teachers/trainers and web developers.
4 MODEL AND WORKING PLAN
The main objective of this project is the realization of
the idea, presented in the previous point, in a
successful company. To this end, this proposal aims
to transform the idea into a business model, as well as
to elaborate the appropriate business plan that allows
the implementation of a company according to the
idea and initial expectations.
The business model will have as a starting point
Portugal, because the target public of LexDoBusiness
are national SME's, however and taking into account
that about 50% of the clients of the attorney Cristiane
de Souza Reis who will integrate, LexDoBusiness,
contact it from abroad, it is essential to ensure the
provision of services to these markets.
According to IAPMEI, the internationalization of
an online domestic business is almost immediate:
"When the domestic business was created on an
online platform, its internationalization can be almost
immediately guaranteed. At the limit of the
development and distribution of computer
applications, accessibility to external markets can be
guaranteed without major adaptations" (IAPMEI,
2016b, p.82). In this way and in accordance with the
above, the communication, access and maintenance
of foreign customers are thus ensured.
The research methodology used in the project was
DSR, which had the external collection of secondary
data present in the INE and PORDATA platforms to
measure the total, available and target market.
Regarding the primary data, to test the acceptance of
fully online legal services provision, an online
questionnaire was conducted. The type of sampling to
be used in this research was quantitative, using the non-
probabilistic sampling technique for convenience. The
scope of the sample focused on the geographical area
of Portugal and Brazil, in the sector of advocacy
activity and was carried out from 21 January 2020 to
09 February 2020. The target population was the
universe of clients and contacts of the lawyer, as well
as her partners, all over 16 years old.
The various components of the LexDoBusiness
model were analyzed, as well as the extent to which
users of the platform consider the most relevant
aspects and services, as well as the degree of
acceptance of exclusively online legal services. This
analysis is justified considering that the law firm is
traditionalist in contrast to what LexDoBusiness
intends to be. For this reason, the intention is to
understand whether clients are willing to contract
legal services via the web and to what extent the
digital transformation has influenced clients seeking,
for example, a lawyer.
5 APPLICATION OF THE THREE
HEVNER CYCLES
Once the methodology was defined, it was necessary
to decide how to apply Hevner's DSR in
LexDoBusiness plan, having as reference the
IAPMEI (2016a) business plan base structure, as can
be seen in Table 1.
Table 1: LexDoBusiness Plan Structure with the application
of the three Hevner cycles.
Base Structure Business Plan
Three Hevner DSR cycles
1. Executive summary;
2. The history of the Company
and/or the promoters;
Space of basic knowledge -
Cycle of Rigor
3. The underlying market
Environment - Relevance Cycle
4. The new idea and its
positioning in the market;
5. The Project/ Product/ Idea
6. Commercial Strategy;
7. Management and control of
the business;
8. Investment required;
9. Financial Projections /
Financial Model.
Design Science Research
Space - Design Cycle
Of the three Hevner (2007) cycles it is only
relevant to present, in this article, the cycle of
relevance because it allows to verify through the
search of external and primary secondary data which
are the requirements of the contextual environment
necessary for the implementation of LexDoBusiness.
5.1 External Secondary Data -
Underlying Market
The databases of INE, PORDATA and statistics on
the business world in Portugal of the RACIUS online
platform Observatory were consulted and used as a
source for obtaining secondary external data -
underlying market.
E-BDT 2020 - Special Session on E-Business and Digital Transformation
168
5.1.1 Total Market
In the last two years, Portugal has seen an increase in
the number of immigrants seeking our country to
settle here, as we can see in data from 2018 in
PORDATA (2018f) where a positive migration
balance of 11 600 immigrants can be verified.
If we consider the foreign population with legal
status of resident in our country we can see that it is
the Brazilians who most seek our country to settle
here, according to data obtained in PORDATA
(2018c) which indicate that 104 504 Brazilian citizens
obtained a residence permit in 2018. Also, according
to data obtained on the same platform, there are
10.283.822 Portuguese residents in Portugal,
according to PORDATA (2018e), of which 5 232 000
are considered the active population PORDATA
(2018b) and 5 031 000 are considered the inactive
population PORDATA (2018d).
Both populations are potential customers,
considering that both the working population may
want to change jobs and create their own business,
and the inactive population, which may have a
business idea and decide to turn it into the working
population. It is important to understand that
immigrants seek an opportunity in our country to
build a better life and make their dreams come true,
and some of them also seek to undertake.
5.1.2 Available Market
Small, medium sized entrepreneurs and population in
informal activity to be regularized, who wish to use
the Internet as a means of initiation and expansion of
business activity.
Second, still the data available until 2018, in the
National Institute of Statistics, there are 1 295 299
SMEs in Portugal (Instituto Nacional de Estatística,
2020).
In the annual report "Enterprises in Portugal -
2018" published by the National Statistics Institute
(Instituto Nacional de Estatística, 2020), in the year
2018 there were 1,295,299 enterprises in Portugal, of
which 67.4 % were individual enterprises and 32.6 %
companies. There has been a growth in the number of
companies and individual companies set up, staff in
service and an increase in turnover compared to 2017.
5.1.3 Target Market
According to (PORDATA, 2018a), since 2013 there
has been a growing number of companies in Portugal.
In 2018 there were 1,294,037 small and medium-
sized companies and 1,262 large companies.
These data indicate that economic stability is
being experienced in Portugal, so it will be a
favourable moment for LexDoBusiness to promote
and present its services.
5.2 Primary Data
In the cycle of relevance, it is also important to
present the primary data obtained through a
questionnaire that aimed to evaluate the degree of
acceptability of contracting legal services,
exclusively through an online platform.
Although LexDoBusiness intends to provide other
services, namely accounting, tax and technological
services, only legal services will be evaluated because
we consider that of all, the legal sector is the most
traditional, which is why most clients feel the need
(tangibility) to resort to physical legal establishments.
Two questionnaires were disclosed, one of them
was advertised in social networks directed to people
over 16 years of age, regardless of whether they have
hired legal services or incorporated companies, while
the other was disclosed through an e-mail marketing
campaign directed to 114 professional contacts of
lawyer Cristiane de Souza Reis.
For statistical purposes, 244 responses were
considered valid after the validation of all the
questionnaire responses.
5.2.1 Internal Consistency Analysis of the
Scales Used
The analysis of internal consistency allows the study
of the properties of measurement scales and the
questions that compose them, determining the level
of correlation between the different items (variables)
that measure the constructs of a questionnaire with
the same measurement scale (in this case, a Likert
scale from 1 to 5).
Most researchers when dealing with questions of
reliability of a measurement use or refer to the
Cronbach alpha index, because it measures the
fidelity or internal consistency of responses to a set of
correlated variables. Cronbach alpha ranges from 0 to
1, and the closer to 1, the greater the consistency of
the scale (Cronbach, 1951).
For the construction of the "Acceptability of
online legal services" construct, questions 3, 4 and 5
were considered as variables. The Cronbach alpha
value obtained for this construct was 0.754, a value
considered acceptable because it is close to 1, so the
reliability of the questions that make up the construct
are appropriate (Davis, 1965).
Analysis of the Viability of the LexDoBusiness Collaborative Platform
169
5.2.2 Results Analysis
Of the 245 responses obtained, only one response was
considered invalid for statistical purposes of gender
differentiation.
The majority of respondents are female (64.34%)
with 157 responses, while 87 responses are male
(35.66%).
There is a good distribution of responses between the
two genders at all levels. The majority of respondents
are aged 36-45, 47 are female and 23 are male.
Broadening the age brackets, most respondents
are aged 26-55. These factors should be considered
when designing the LexDoBusiness communication
plan to find the best way to communicate services for
each age group.
Graph 2 presents the data obtained in question "1.
In a first contact with lawyers, which is the preferred
channel to be served?" by nationality.
Graph 2: Preference channel legal services (1st contact) by
nationality.
It can be seen that 50 of the 94 Brazilian
respondents (53%) prefer face-to-face contact with
lawyers in the first approach, in contrast to the 104
Portuguese respondents out of a total of 150 (69%)
and it can be concluded that Brazilians are more
willing to contract legal services online.
Question 2: "After the first contact with lawyers,
what is the preferred channel to be attended to until
your problem is solved?" confirms that the
respondents prefer to expose their problems to the
lawyers in a face-to-face manner, not only at the first
contact, but also at the following meetings. Proof of
this are the 106 responses obtained that far outnumber
the other forms of contact.
According to the data collected, the 106
respondents also add 49, making up 155 respondents
who simultaneously accept other forms of contact, in
addition to physical attendance with lawyers.
The answers obtained with the question "3- Do
you believe that the provision of legal services must
necessarily require the physical meeting between
lawyers and clients?"(Graph 3), it is noted that only
25.82% of the respondents of Portuguese and
Brazilian nationality are of the opinion that the type
of contact between lawyers and clients should not
necessarily be physical, when the provision of legal
services occurs.
Graph 3: Degree of agreement of the provision of legal
services online by nationality.
Graph 4: Degree of agreement of the need for physical
office by nationality.
The results obtained from the questionnaire,
summarized in Graph 4 , in relation to question "4-
Do you consider it fundamental for lawyers to have a
physical office to serve their clients?", confirm the
need for lawyers to have a physical office to provide
their services, because according to the opinion of the
majority (59.02%) of the 244 respondents, they agree
(39.75% respondents) and fully agree (19.26%
respondents).
Graph 5: Degree of agreement of web services by lawyers,
by nationality.
E-BDT 2020 - Special Session on E-Business and Digital Transformation
170
Graph 5 illustrates the answers to question "5- Do
you find it more comfortable to be assisted by a
lawyer via the web (e.g. Skype)? In this question, the
opinions of the 244 Portuguese and Brazilian
respondents are well distributed among the various
answer options.
The agreement with the convenience of being
assisted by a lawyer via web was 34.02% as opposed
to 38.93% of the respondents who do not consider this
form of assistance convenient. While 27.05% of
respondents chose to answer that they "do not agree
or disagree" with the statement.
These results, once again show that the 244
participants in the sample, are not comfortable enough
to turn to a lawyer in case of conflict, via the web.
The answers of the 244 respondents to questions
1 to 5 indicated results that declined to provide legal
services exclusively online, so the research problem
formulated was confirmed.
Therefore, it is concluded that LexDoBusiness
will necessarily have to have a physical space (office)
to provide legal services to its clients.
6 BUSINESS PLAN
According to IAPMEI (2016a) the entire business
plan should have an executive summary that serves to
present the idea to potential investors. In this section
of the work the executive summary of the business
plan is presented.
Nowadays, people have their own business,
which, if successful, provides more results than
having a subordinate career in a company and the
Internet is a fertile area of great opportunities, since
the knowledge about e-commerce is still a wide field
to be explored.
Initially, it should be noted that online business
does not require showcases, a large sales team, stored
goods and investment in print media. The cost to
maintain a "dot com" business is low and offers the
opportunity to sell products and services anywhere.
And this fact justifies the present project.
LexDoBusiness is an electronic platform,
Business-to-Business, in the consulting area, focused
on the development of entrepreneurship.
We work for all those who have the interest to
create a business in national territory, regardless of
their education, culture, religion and nationality.
Our vision is to allow anyone a real opportunity to
pursue their entrepreneurial dream. Our mission is to
transform ideas into successful businesses, taking
advantage of everyone's entrepreneurial potential.
Our services range from training entrepreneurs,
through online and in-person training, structuring
ideas into projects and monitoring the company
throughout its life cycle.
Our multidisciplinary team will provide the
necessary support in the legal, conflict mediation,
accounting, tax and IT areas through the development
of the company website and its hosting. Our network
of partners will assist in any part of the national
territory and, also in Italy and Brazil.
Considering that in the year 2018 there were
1,294,037 companies we foresee in the first year to
conquer 0.007% of the market share contracting with
91 SMEs and to obtain revenues of 452 800.00 euros
(four hundred and fifty-two thousand and eight
hundred euros).
In a second phase, partners who wish to create an
account on our platform in order to have access to our
client portfolio will have to subscribe to a paid plan,
with higher earnings expected.
In order to achieve these results there is a need for
35 500 euros of investment, which will be directed
towards marketing campaigns, development of the
online platform, extension of the process management
system to all business areas, creation of content for
training and hiring staff, as well as office and car rental.
7 CONCLUSIONS
This paper presents the strategy to be followed for
LexDoBusiness to obtain a competitive advantage
over its competitors.
The paper also presents the project methodology
that will be used, and the guidelines that will guide
the development of the LexDoBusiness collaborative
platform project.
A secondary and primary data survey was
conducted, enabling the development of a business
plan that allows LexDoBusiness to achieve its goals
in terms of notoriety and interaction with its
customers in several channels.
From the analysis to the questionnaire responses,
it was concluded that most of the 244 respondents
declined to provide legal services exclusively online,
confirming the research problem formulated.
Consequently, LexDoBusiness must necessarily have
a physical space to provide legal services to its
clients, which results in increased fixed costs when
renting an office.
However, it is known from the literature review
previously carried out (Azeredo, Reis and Pinto,
2020) that a strong digital presence gives
organizations a competitive advantage because it
Analysis of the Viability of the LexDoBusiness Collaborative Platform
171
provides them with greater communication power,
and, therefore, they can be found more easily by
clients, having greater opportunity to choose their
products and/or services. If a well-developed digital
presence is able to attract customers, one can
conclude that it is possible to expand business from
this. If a digital presence is important in the present
for organizations, it is essential for their future.
Another factor to consider is that the primary data
survey was conducted between January 21, 2020 and
February 9, 2020. If it had been carried out during the
COVID-19 epidemic it would have reached Portugal
and Brazil, that is, if the questionnaire had been
released after the declaration of the state of
emergency in Portugal
4
and in some municipalities
and states of Brazil
5
, places where the questionnaire
was submitted, at a time when the population was
advised to stay at home and, in some cases,
mandatory confinement was decreed, possibly more
respondents would have opted for exclusively online
legal services, calling into question the problem of
investigation, to the extent that a physical office
would no longer be necessary to serve the clients of
lawyers, however it would be necessary to inquire
after the end of the epidemic, in order to know
whether the positioning would be different given the
period in which people stayed at home, so many
professionals in teleworking, including lawyers.
ACKNOWLEDGEMENTS
This work is financed by portuguese national funds
through FCT - Fundação para a Ciência e Tecnologia,
under the project UIDB/05422/2020.
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5
On March 17, 2020, the Mayor of the County of São Paulo
decreed an emergency in the County of São Paulo,
through the Official Gazette No. 51 and Decree No.
59,283 of March 16, 2020.
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