IMPACT OF E-COMMERCE ON BUSINESS PERFORMANCE IN A BUSINESS TO BUSINESS ENVIRONMENT

CHAPTER ONE

1.1  BACKGROUND TO THE STUDY

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) e-commerce is viewed as the buying and selling of products, services and information via computer networks”.  Globerman et al (2001 cited Kaynak et al 2005) also states that ecommerce involves the contractual agreement between the buyer and the seller and conclusion of that agreement through the payment of goods and services via the electronic means Watson et al. (1998) provides reasons as benefit of e-commerce .This include low transaction cost, customer service which provides good image of the firm, and increase visibility; to improve customer service, enable market expansion; reduced stakeholder communication costs through on-line transactions and information distribution. The research therefore seek to investigate the Impact of e-commerce on business performance in a business to business environment -

1.2  STATEMENT OF THE PROBLEM

The World Trade Organization (WTO) provides a definition of E-commerce 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) e-commerce is viewed as the buying and selling of products, services and information via computer networks”.  Globerman et al (2001 cited Kaynak et al 2005) also states that ecommerce involves the contractual agreement between the buyer and the seller and conclusion of that agreement through the payment of goods and services via the electronic means Watson et al. (1998) provides reasons as benefit of e-commerce .This include low transaction cost, customer service which provides good image of the firm, and increase visibility; to improve customer service, enable market expansion; reduced stakeholder communication costs through on-line transactions and information distribution.

The current trend in global trade and commerce show the increasing use of E-Commerce to increase sales globally; however there is also an increase in competition by larger firms’ .Brand Loyalty is also decreasing as customers can readily switch their buying pattern. Low Average Order Values. It often takes several days to locate the ideal product after intensive search. Many ecommerce solutions lack personalization, some are mechanical, and devoid of 'intelligence ‘and ‘understanding’ Large firms requires.  good numbers of consumers  requires  a more personalized, assisted, shopping experience, which many cannot provide. Therefore the problem confronting this research is to determine Impact of e-commerce on business performance in a business to business environment

1.3 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) e-commerce is viewed as the buying and selling of products, services and information via computer networks”.  Globerman et al (2001 cited Kaynak et al 2005) also states that ecommerce involves the contractual agreement between the buyer and the seller and conclusion of that agreement through the payment of goods and services via the electronic means

 Watson et al. (1998) provides reasons as benefit of e-commerce .This include low transaction cost, customer service which provides good image of the firm, and increase visibility; to improve customer service, enable market expansion; reduced stakeholder communication costs through on-line transactions and information distribution.

1.4 RESEARCH QUESTIONS

What   constitute the nature of ecommerce?

What is the impact of ecommerce on business performance in  a business to business environment

1.5 SIGNIFICANCE OF THE STUDY

The study shall elucidate on the impact of ecommerce on the performance of businesses with a view to providing a comparative analysis with the traditional buying and selling practice

1.6 RESEARCH HYPOTHESIS

Ho The impact of e-commerce on business performance in a business to business environment is low

Hi The impact of e-commerce on business performance in a business to business environment is low

1.7 SCOPE OF THE STUDY

The study focuses on the appraisal of the impact of e-commerce on business performance in a business to business environment

1.8 LIMITATIONS OF THE STUDY

The study was confronted by some constraints including geographical factor and logistics.

1.9  DEFINITION OF TERMS

E-COMMERCE DEFINED

E-commerce is viewed as the buying and selling of products, services and information via computer networks”.

BRAND LOYALTY DEFINED

This is the faithfulness which the consumers exhibit to a particular brand, with the view of ensuring repeat purchases, irrespective of existing competition.