INFLUENCE OF E-COMMERCE ON THE PERFORMANCE OF SMES
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INFLUENCE OF E-COMMERCE ON THE PERFORMANCE OF SMES
ABSTRACT
The study looks at how E-commerce affects the performance of small and medium-sized enterprises in Imo. 311 questionnaires were distributed at random to business owners, partners, and employees in Imo State, with 298 completed and returned. The study used a descriptive research design.
The data obtained from the questionnaire was analysed using descriptive statistics such as mean, simple, and multiple linear regression. Among the findings were that e-commerce investment has a positive and significant effect on the growth of SMEs, while e-commerce infrastructure challenges have a negative and significant impact on customer satisfaction.
The following recommendations were made: SMEs in Imo State should include E-commerce investment in their annual plans, and the government should rally behind SMEs, given that they account for half of the country’s GDP, in order to reduce the financial burden by creating an environment that encourages SMEs’ innovation and creativity.
It was eventually established that SMEs should invest in E-commerce by putting all of the necessary infrastructure in place, since this will improve their performance.
Finally, countermeasures should be implemented to address the difficulties surrounding e-commerce security challenges. Failure to appropriately address this challenge will result in decreased organisational performance.
Chapter one
INTRODUCTION
1.1 Background of the Study.
Globally, the discovery and development of data technologies have benefited everyday life while also altering the breadth and dynamics of the commercial sector. This has enabled previously unthinkable feats to be accomplished.
urthermore, it has simplified and increased the efficiency of formerly difficult and complex corporate procedures. It has increased corporate visibility and provided consumers with unprecedented access to the goods and services on offer.
This advancement has transformed the world into a ‘global village’ in which trade can take place between parties who are physically separated. This function is known as e-commerce. Similarly, Nigeria has not been left out of the expanding e-commerce trends, with many enterprises capitalising on the advancement of information technology to boost their visibility and accessibility.
Similarly, despite limited resources, Nigerian Small and Medium Enterprises have been able to leverage e-commerce to strengthen their company activities and make themselves more visible to consumers. This has made e-commerce to be considered as a modern-day ‘industrial revolution’. (King, 2016)
The term ‘e-commerce’ is a combination of the phrases electronic and commerce (Lair, 2014). Hassan and Muljadi (2015) emphasised that, while e-commerce was first introduced over 40 years ago, academic interest in it is relatively new. Miva (2011) defined e-commerce as the purchase and sale of goods or services over the internet.
Furthermore, Kareem, Owomoyela, and Oyebamiji (2014) defined e-commerce as the use of communication technology, specifically the internet, to buy, sell, and market goods and services to consumers.
Tang, Powell, Worlock, and Bingham (2000) agreed, describing it as the manner in which business is performed using telecommunications and telecommunication instruments.
Furthermore, Hassan and Muljadi (2015) defined e-commerce as activities that aim to facilitate arm’s length transactions between businesses and consumers. According to the OECD (2015), it represents the creation of a new type of commercial world in an electronic environment.
In today’s world, e-commerce continues to evolve with new technology and ideas that improve its functionality and efficiency. E-commerce has a significant benefit over traditional businesses in that it can be reviewed at any moment and has a global reach (Chen & Zhang, 2015).
Okeke, Ezeaghaego, and Oboreh (2016) believe that e-commerce has an impact on many aspects of the global market, either directly or indirectly. According to them, this has abolished the constraints on information accessibility and ensured that it may be accessed from anywhere via the Internet.
Furthermore, Kareem et al. (2014) believe that the emergence of e-commerce has created new chances for retailers by reducing the necessity of location and increasing their reach to customers in need of their services.
Major corporations throughout the world have capitalised on the use of e-commerce to boost their profitability and commercial performance.
Companies such as Amazon, Alibaba, and Walmart have grown into enormous corporations as a result of incorporating e-commerce into their business models (Ledley 2014). As a result, they have been able to increase their market share from local to global markets.
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