The impact of E-Commerce Student’s full name: Student’s programme:MSc in Financial Management Module:Acamedic Skills Academic Year / Semester:2017-2018 Autumn Word Count1: Seminar leader: Due Date: 1
Table of Contents 1. Introduction...............................................................................................3 2. Discussion..................................................................................................3 2.1 Importance of E-commerce for small enterprises of developing countries........................................................................................................3 2.2 Impact of e-commerce on small enterprises............................................4 2.2.1 FINANCIALBENEFITOFE-COMMERCEONSMALLENTERPRISESOFDEVELOPING COUNTRIES.................................................................................................................4 2.2.2 SOCIOECONOMICBENEFITOFE-COMMERCEONSMALLENTERPRISESOFDEVELOPING COUNTRIES.................................................................................................................5 2.2.3 PROCUREMENTBENEFITOFE-COMMERCEONSMALLENTERPRISESOFDEVELOPING COUNTRIES.................................................................................................................6 2.2.4 PRODUCTIVITYGAINSDUETOTHEUSEOFE-COMMERCEINSMALLENTERPRISESOF DEVELOPINGCOUNTRIES..............................................................................................6 2.2.5 OTHERADDITIONALBENEFITSOFE-COMMERCEINSMALLENTERPRISES.................7 Conclusion......................................................................................................8 References.....................................................................................................9 2
1. Introduction The technology of e-commerce helps in offering number of potential benefits for business of the organizations. The main aim of the paper is to elaborate the impact of e- commerce on the small enterprises of developing countries. According toChoshin and Ghaffari (2017), small enterprises are considered as the fastest changing sector and it is posited that small enterprises can substantially achieve proper amount of benefit from e-commerce. It is found that the adoption of e-commerce is influenced by the governments of developing countries for achieving proper amount of success as well as for economic development of their country. In addition to this the advantages that are offered by the e-commerce in small enterprises is considered as one of the important factor for the growth of the developing countries. The paper identifies how the small enterprises of developing countries are impacted by the adoption of e-commerce as compared to developed countries. 2. Discussion 2.1 Importance of E-commerce for small enterprises of developing countries According toAhmadet al.(2015), E-commerce is defined as one of the business or economic activity that helps in enabling selling as well as buying of products in order to provide the facility of business transaction. It is identified that e-commerce has a potential of adding higher value to the consumers as well as businesses in developing countries in comparison to developed countriesFalk and Hagsten (2015, pp. 358).However, with the rapid growth and develop of ecommerce, it is identified that the rate adoption of e-commerce in developing countries by the small enterprises are slower as compared to the small enterprises of the developed countries. It is stated byHanna (2016) that the SMEs of developing countries are moving towards e-commerce in order to achieve success. The presence of e-commerce has expanded quite rapidly and this is due to the benefits as well as opportunities that the businesses are getting with the implementation of e-commerce. The concept of utilizing the e-commerce with the help of internet software as well as services helps in endeavor the linkage of internet use with the various types of opportunities that it generally offers to the firmsTurbanet al.(2017,pp.57).It further helps in recognizing that the strategic potential of internet use helps in controlling the bounds of relationships as well as interfaces that is mainly utilized between the business as well as customers that is mainly associated with the strategy of the firm. 3
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