Impact of E-Commerce on Business Performance in a Business-to-Business Environment
Chapter One
Objectives Of The Study
To determine the Impact of e-commerce on business performance in a business-to-business environment
E-commerce is viewed as the electronic means of production, distribution, marketing, sale, or delivery of goods and services. According to (Baker & McKenzie 2001 cited Kaynak et al 2005). Shultz & Baumgartner (2001) state that e-commerce is viewed as the buying and selling products, services, and information via computer networks”. Globerman et al (2001 cited Kaynak et al 2005) also state that e-commerce involves the contractual agreement between the buyer and the seller and the conclusion of that agreement through the payment of goods and services via electronic means
Watson et al. (1998) provide reasons for the benefit of e-commerce. This includes low transaction costs, customer service that offers a good image of the firm and increases visibility; improved customer service, enabling market expansion; and reduced stakeholder communication costs through online transactions and information distribution.
CHAPTER TWO
INTRODUCTION
Our focus in this chapter is to critically examine relevant literatures that would assist in explaining the research problem and furthermore recognize the efforts of scholars who had previously contributed immensely to similar research. The chapter intends to deepen the understanding of the study and close the perceived gaps.
Concept of E-Commerce
The definition of e-commerce is as diverse as the number of scholars and practitioners that have attempted to explain it. Soto (2005) asserts that electronic commerce (e-commerce) is an intricate procedure that accelerates strategy formulation, communication (for instance promotion), delivery/fulfilment, and assessment of the current business transaction between a firm and its partners. Further, Turban, Lee, King and Chung (2009) articulate that e- commerce involves exchange and trade of information, services or products over the internet.
Zwass (2006) highlights that e-commerce implies the sharing suitable information regarding emergence of new technology in the business, uphold a firm’s relationships, and running the business activities using internet. From these definitions, e-commerce is applicable to business activities of other diverse set up and is not restricted to transactions of product only. According to Kalakota and Whinston (2007), e-commerce applications find use in three main transactions; business to customer, customer to another customer and business to another business. Another emerging avenue is between government to customer and government to businesses.
Drivers to Adoption of E-Commerce
Tsai and Cheng (2012) articulate that E-Commerce implementation is driven by the perceived benefits it brings to an organization. They postulate that the adoption of E-Commerce is driven by its expectation to lower the cost of operation of a firm, increase quality and quantity of production, and enhance rapid response to clients’ and stakeholders’ needs (Jardim-Goncalves et al. 2012). Further, businesses that have adopted E-Commerce extensively have been found to increase their value due to the improved performance of the firm.
E-Commerce facilitates adoption of collaborative technologies; such as repositories, shared databases, discussion meetings and workflow facilitating the process of technology implementation (Merono-Cerdan et al. 2013). Researchers have established a positive relationship between innovation and collaborative technologies in a firm. This association facilitates knowledge sharing such as through web sites and extranets, between customers and suppliers. Thus, Internet technologies helps in sharing and distribution of individual innovation and experience skills in the whole firm as well as enhancing appropriate knowledge application in creating new products (Andreu, Aldas, Bigne & Mattila, 2010).
Barriers to Adoption of E-Commerce
Girard (2014) defines a barrier as a representation of “a physical or immaterial obstacle that an individual or group needs to overcome in order to obtain the information they seek”. This study will strive to understand the specific barriers that automotive firms in Nairobi, Kenya face in their quest to deploy E-commerce systems. It will also be important to understand whether these barriers are specific to the automotive firms or they are shared across different sectors of business.
Lawrence and Tar (2010) posited that E-Commerce has the capability to impact efficiency as well as productivity in several sectors of the economy in developing countries but barriers such as absence of adequate basic infrastructure, lack of government national ICT strategies and poor socio-economics. Other barriers that have been identified include lack of top management’s support towards the implementation of E-Commerce, inadequate financial resources and lack of appropriate technical skills to deploy E-Commerce.
Business Performance
According to Van Weele and Van Raaij (2014) a firm’s business performance gives an ability to evaluate its success and progress towards the achievement of goals, targets and objectives as well as recognize areas of weakness and strength and determining on how forthcoming initiatives are to be undertaken. Moullin (2017) defines performance as a means through which a firm provides value to its stakeholders and therefore is an indication of how well the managers succeed in utilizing firm resources. Further, Koontz and Donnell (2010) is of the view that a firm’s performance is the ability to realize such mundane objectives as high profit, increased market share, new product development, good financial results, and achieving long-term sustainability. Hence it is a measure of actions of the business firm in terms of achieving firm aims and objectives.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
POPULATION OF THE STUDY
According to Udoyen (2019), a study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex or specific interest. The emphasis on study population is that it constitute of individuals or elements that are homogeneous in description.
This study was carried out to examine the impact of e-commerce on business performance in a business to business environment. Businesses in Abuja form the population of the study.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of Ninty-five (95) questionnaires were administered to respondents of which 80 were returned. The analysis of this study is based on the number returned.
CHAPTER FIVE
CONCLUSION AND RECOMMENDATION
CONCLUSION
In this study, our focus was to carryout a critical analysis on the impact of e-commerce on business performance in a business to business environment. The study specifically was aimed at ascertaining the adoption, barrier of adoption of E-commerce and impact of E-commerce on business performance in a business to business environment. This study reviewed and anchored its framework on Expectation-Confirmation theory.
The study adopted the survey research design and randomly enrolled participants in the study. A total of 80 responses were validated from the enrolled participants where all respondent are active workers in the 5 selected business enterprises in Abuja.
The study has established that there’s a strong relationship between the adoption of E- Commerce and the performance in a business to business environment. It was established that the adoption of E-Commerce to facilitate payments, to list and display available inventory to customers, to track inventory from purchase to sale, to make enquiries, to receive orders, to fulfil orders, to engage customers, accounted for 85.8% of the performance.
RECOMMENDATION
Based on the responses obtained, the researcher proffers the following recommendations:
The researcher recommends that businesses need to incorporate all the aspects of E- commerce into their overall adoption strategy. The automotive firms need to find out ways of encouraging employees to make use of E-commerce. If employees are encouraged and motivated by the top management to use E-commerce, the adoption becomes much easier. It is therefore recommended that the management of automotive firms need to incorporate motivation and incentive into the overall E-commerce strategy. It is also incumbent on the employees of these firms to enhance their skills by taking lessons on E-commerce and to keep abreast with emerging technologies to remain relevant in the ever-changing modern workplace.
Since E-commerce is increasingly becoming an important and indispensable tool for conducting business, the government should come up with relevant policies that support its adoption by eliminating the known barriers to adoption that are related to policy and regulation. In addition, owners and employees of automotive firms should be encouraged to regularly attend workshops and courses to constantly improve on their technical skills and knowledge of E-commerce.
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