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Electronic commerce development in small and medium sized enterprises

Electronical commerce has become popular in recent years. It is a lucrative business and a lot has been done in its development.

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Image source: corpchallenge.co.nz

Basics:

Electronic commerce, commonly known as e-commerce, ecommerce, eCommerce or e-comm, refers to the buying and selling of products or services over electronic systems such as the Internet and other computer networks. The amount of trade conducted electronically has grown extraordinarily with widespread Internet usage. The use of commerce is conducted in this way, spurring and drawing on innovations in electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web at least at one point in the transaction’s life-cycle, although it may encompass a wider range of technologies such as e-mail, mobile devices and telephones as well.
A large percentage of electronic commerce is conducted entirely in electronic form for virtual items such as access to premium content on a website, but mostly electronic commerce involves the transportation of physical items in some way. Online retailers are sometimes known as e-tailers and online retail is sometimes known as e-tail. Almost all big retailers are now electronically present on the World Wide Web. [1]

The 1990s have witnessed the proliferation and hypergrowth of the Internet which, combined with traditional IT technologies, is creating a global, and cost-effective platform for businesses to communicate and conduct commerce. Because of today’s shrinking world, companies must create new sources of competitive advantage almost on a daily basis. This fact becomes critical for small and medium enterprises (SMEs) because they are considered to be a major component of all economies and are generally considered to be flexible, adaptive and innovative organizations, which appears to make them a good fit for electronic (e)-commerce. The present study presents an in-depth analysis of the e-commerce development stages and the facilitators and barriers for SMEs during each stage.[2]

By combining two independent research streams, we examined the determinant factors of strategic value and adoption of electronic commerce as perceived by top managers in small and medium sized enterprises (SME) in the midwest region of the US. We proposed a research model that suggested three factors that have been found to be influential in previous research in the perception of strategic value of other information technologies: operational support, managerial productivity, and strategic decision aids. Inspired by the technology acceptance model and other relevant research in the area, we also identified four factors that influence electronic commerce adoption: organizational readiness, external pressure, perceived ease of use, and perceived usefulness. We hypothesized a causal link between the perceived strategic value of electronic commerce and electronic commerce adoption. To validate the research model, we collected data from top managers/owners of SME by using an Internet survey. [3]

This study compares the reasons why small and large companies are adopting electronic commerce (e-commerce) and compares the benefits realized from the adoption of e-commerce by these two groups of companies. Two surveys that were undertaken contemporaneously on the use of e-commerce by small and large companies in the UK were used as the empirical basis for this study. The study found that the use of e-commerce for responding to competitors, providing enhanced customer services and improving relations with suppliers was driving the uptake by smaller businesses to a greater extent than by their larger counterparts. Only in the area of improved operational efficiency did larger businesses express greater interest in adopting e-commerce. The study also found that smaller businesses believed that they had achieved greater benefits from their e-commerce services than had the larger firms in all areas explored. [4]

The purpose of this paper is to present the perceptions and experiences of Electronic Commerce (EC) implementation in Australia. The study is investigated from the perspective of Small- and Medium-sized Enterprises (SMEs) and the framework of implementation is represented by the extent of deployment. Based on the sample of about 115 small businesses in Australia, this paper uses regression modelling to explore and establish the factors that are related to the extent of deployment in EC. A multiple regression analysis shows that seven factors: perceived relative advantage, trialability, observability, variety of information sources, communication amount, competitive pressure, and non-trading institutional influences, significantly influence the extent of EC deployment by SMEs in Australia. The results and interpretations have some implications for managers in determining the appropriateness of deploying EC strategies to achieve profitability and operational efficiency. [5]

With the environment improvement of electronic commerce in China, electronic commerce of small and medium-sized enterprises also marches into the stage of practical development. To acquire comprehensive and thorough knowledge of the status quo of small and medium-sized enterprises electronic commerce, this thesis based on the data of electronic commerce of large-scale enterprises collected by famous domestic and foreign investigation institutes, illustrates the features and problems of electronic commerce development of small and medium-sized enterprise in China, and analyzes the factors for promoting the development. [6]

Conclusion:

Since buying and selling services over the internet have become widely popular electronic commerce development in small and medium sized enterprises has started to develop. All that has the same goal which is to better businesses and increase their revenue.

References:

[1] http://en.wikipedia.org/wiki/Electronic_commerce
[2] “Electronic commerce development in small and medium sized enterprises: A stage model and its implications” by: S. Subba Rao, Glenn Metts, Carlo A. Mora Monge
[3] ”Electronic commerce adoption: an empirical study of small and medium US businesses” by: Elizabeth E. Grandona, J.Michael Pearson
[4] ”An exploratory comparison of electronic commerce adoption in large and small enterprises” by: Elizabeth M. Daniel & David J. Grimshaw
[5] ”An empirical study of factors that influence the extent of deployment of electronic commerce for small- and medium-sized enterprises in Australia” by: Sandy Chong
[6] ”Small and medium-sized enterprises electronic commerce development problem and countermeasure analysis” by: Zhu Mingqiang; Duan Xiang


Josip

AUTHOR: Josip Ivanovic

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