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

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

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

Chapter one

1.1 Background of the Study

E-commerce is defined as the electronic means of producing, distributing, marketing, selling, or delivering products and services.According to (Baker & McKenzie 2001, citing Kaynak et al. 2005).

According to Shultz and Baumgartner (2001), e-commerce is defined as “the buying and selling of products, services, and information over computer networks.”

Globerman et al. (2001 cited Kaynak et al. 2005) also state that ecommerce involves the contractual agreement between the customer and the seller and the execution of that agreement through the payment of products and services via electronic means.

Watson et al. (1998) present reasons for the benefits of e-commerce.This includes cheap transaction costs, customer service that enhances the firm’s image, and increased visibility; improving customer service, enabling market expansion; and lowering stakeholder communication costs through online transactions and information delivery. The research aims to investigate the impact of e-commerce on business performance in a business-to-business context.

1.2 Statement of the Problem

2 The World Trade Organisation (WTO) defines E-commerce as the electronic means of producing, distributing, marketing, selling, or delivering goods and services.According to (Baker & McKenzie 2001, citing Kaynak et al. 2005).

According to Shultz and Baumgartner (2001), e-commerce is defined as “the buying and selling of products, services, and information over computer networks.”

Globerman et al. (2001 cited Kaynak et al. 2005) also state that ecommerce involves the contractual agreement between the customer and the seller and the execution of that agreement through the payment of products and services via electronic means.

Watson et al. (1998) present reasons for the benefits of e-commerce.This includes low transaction costs, customer service that offers a positive image of the firm, and boost visibility; to improve customer service, enable market expansion; and to lower stakeholder communication costs through online transactions and information delivery.

The current trend in global trade and commerce indicates an increased usage of E-Commerce to enhance sales globally; however, there is also an increase in rivalry from larger corporations.

Brand loyalty is also eroding as buyers can easily swap their purchasing habits. Low average order values. Following an extensive search, it can often take several days to find the perfect product.

Many ecommerce solutions lack personalisation, some are mechanical and devoid of ‘intelligence’ and ‘understanding’. Large enterprises require. A large proportion of customers desire a more personalised, guided purchasing experience, which many cannot give.

Therefore, the problem confronting this research is to determine the impact of e-commerce on business performance in a business-to-business setting.

1.3 GOALS OF THE STUDY

To assess the impact of e-commerce on business performance in a business-to-business setting.

E-commerce is defined as the electronic means of producing, distributing, marketing, selling, or delivering products and services.According to (Baker & McKenzie 2001, citing Kaynak et al. 2005).

According to Shultz and Baumgartner (2001), e-commerce is defined as “the buying and selling of products, services, and information over computer networks.”

Globerman et al. (2001 cited Kaynak et al. 2005) also state that ecommerce involves the contractual agreement between the customer and the seller and the execution of that agreement through the payment of products and services via electronic means.

Watson et al. (1998) present reasons for the benefits of e-commerce.This includes cheap transaction costs, customer service that enhances the firm’s image, and increased visibility; improving customer service, enabling market expansion; and lowering stakeholder communication costs through online transactions and information delivery.

1.4 RESEARCH QUESTIONS

What is the nature of ecommerce?

How does e-commerce affect 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 organisations in order to provide a comparison analysis with the traditional purchasing and selling activity.

1.6 Research Hypothesis

Ho E-commerce has a minimal impact on business success in a business-to-business context.

Hi E-commerce has a minimal impact on business success in a business-to-business context.

1.7 SCOPE OF THE STUDY

The research focuses on assessing the impact of e-commerce on business performance in a business-to-business context.

1.8 Limitations of the Study

The investigation was limited by geographical and logistical constraints.

1.9 Definition of Terms

E-Commerce Defined

E-commerce is defined as “the purchase and sale of goods, services, and information over computer networks”.

Brand Loyalty Defined

This refers to consumers’ loyalty to a specific brand in order to ensure recurring purchases, regardless of existing competition.

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