Found inside – Page 233INtErNAL ENVIrONMENtAL FActOrs ExtErNAL ENVIrONMENtAL FActOrs Organisation Firm Size Firm Age Management Support Perceived ... complexity (ease of use or the ease with Factors Influencing the Extent of Deployment of Electronic Commerce. (Milliken, 1987). This threat creates pressure for the company to continuously develop and improve its technological assets. Found inside – Page 536Other social factors affecting airline e-commerce include society's growing environmental awareness and social causes around the world. Airlines have responded to this by accommodating special features on their websites. It's natural for customers to compare prices between brands. A few examples of these practices are selling environmentally friendly products, placing warnings or restrictions on potentially harmful goods, or even removing recalled or controversial products. This paper examines how the external factors - i.e. The main objective of this study is to increase the knowledge base on the factors affecting adoption of e-commerce in small and medium-sized enterprises (SMEs). especially in the aspects of factors affecting to the extent of adoptability of e-commerce and barriers for the adoption of e-commerce encountered within the industry. Technological advancements such as the developments of ICT has led to growth of the e-commerce industry. E-Commerce facilitates fundamentally the movement of goods from suppliers to customers. Fill in your details below or click an icon to log in: You are commenting using your WordPress.com account. This study aimed to investigate the factors that affect e-commerce adoption in small and medium sized enterprises (SMEs) in the developing country context of Botswana. The main organizational factors affecting e-commerce adoption in the two countries are the CEO and employees' knowledge and attitude. PESTEL Analysis Definition. The e-commerce industry has held steady and continuously increased over the years. The list of environmental factors affecting e-commerce diffusion is long, and these factors have differential influence in different countries. Factors Affecting E-commerce - Key drivers of e-commerce may be categorized in terms of 4 key business environment factors which influence the e-commerce industry. In this regard, there is an urgent need to investigate the factors that affect individuals' intention to adopt e-Payment. An increasing amount of consumerism creates opportunities for growing the e-commerce and IT services business. PEST Analysis Of E-Retail Leader Amazon. Prepare the best strategies in advance This book is a practical and accessible guide to understanding and implementing the PESTLE analysis, providing you with the essential information and saving time. These include economic, social, legal, technological and political factors. Retrieved October 16, 2020, from https://smallbusiness.chron.com/role-macro-environment-retail-industry-33419.html. The study presents evidence that national information ecologies, shaped by various institutional environment factors, exert influence on a country's e-commerce adoption at different stages of e . With programs like the ecommerce platform Shopify, you can pick and choose from customized templates and show off your goods in your own eye-catching digital displays. endobj /Parent 2 0 R Wealth disparity is the gap between the rich and the poor. The macro environment will influence all the players operating in the market. >> Sign up and we'll email you a daily dose of lifestyle stories, covering sex, relationships, health, wellness, money, and green living. New models for distributing, sharing, linking, and marketing information are appearing. In fact, specific analyses are required that consider the particular features of e-commerce for the end-consumer markets. /Type /Pages Change ), You are commenting using your Google account. Found inside – Page 90We have revealed thateven predominant changes are reflected in the market mechanism for both the external and ... Critical Factors Affecting Diffusion of E-Commerce As we conceptualized in the previous section, diffusion of EC in any ... Some common factors are political, economic, social and technological (known as PEST analysis). e-commerce 1. >> In Africa, 40 percent annual growth in e-commerce activity is predicted over the next decade. 9 Factors That Impact Ecommerce Sales. Found inside – Page 113This study examines the influence of IT emphasis , reflected by IT investment intensity , on e - commerce adoption . ... Environmental factors , especially market factors ( i.e. , competitiveness ) , cannot be controlled by ... CONCLUSIONSIn this article, we have attempted to highlight the likely global/regional and national environmental factors affecting e-commerce adoption in Singapore. Retrieved from https://notesmatic.com/2017/11/pestel-analysis-e-commerce-industry/, Treadwell, L. (2019, January 31). << Found inside – Page 302Research Model The main aim of the current research was to explore the factors affecting CC-based e-commerce adoption and to ... technological and environmental factors, as these broadly encompass the e-commerce antecedents likely to be ... Migrating to internet-based e-commerce: Factors affecting e-commerce adoption and migration at the firm level Weiyin Honga,*, Kevin Zhub aDepartment of Management Information Systems, College of Business, University of Nevada, 4505 Maryland Parkway, P.O. Found inside – Page 216This study used the Technology–Organization–Environment (TOE) framework6 to identify determinants of E-commerce ... (O) and environmental (E)–which are used in this study to determine the discriminating factors of E-commerce adoption ... Nevertheless, there is insufficient empirical evidence on the various factors affecting e-commerce adoption within the industry. It is projected to continue expanding in the future. Specifically, perceived behavioural control exhibited a significant, positive, and direct relationship with attitude and behaviour intention. The likelihood of e-commerce success is increased by economic stability. Box 456034, Las Vegas, NV 89154, USA The infrastructure for EC is a networked computin %PDF-1.4 /Version /1.4 As a whole, the empirical work undertaken since the mid-1990s, particularly for advanced economies, has identified a large and varied number of determinants of Internet and e-commerce adoption and development (factors to do with the competitive environment, technological and organizational factors, etc. In addition, [6]also provide a theoretical framework on e-business competitiveness factors by considering factors on country level, industrial level and company level. FACTORS AFFECTING THE ADOPTION OF E-COMMERCE IN SMES The plethora of studies on IS and, in particular, e-Commerce demonstrate that there are a wide range of factors affecting adoption. Amazon.com Inc. PESTEL/PESTLE Analysis, Recommendations. the factors affecting online buying intention in e-commerce towards Lazada.co.th. /Type /Page The research is based on a wide literature review, focused on proposing a theoretical model of the technological, environmental, and organizational factors influencing . Economic and governmental factors often overlap in areas such as import laws, export laws, and inflation which can decrease consumer purchasing power. Found inside – Page 305Constructs used in the survey focussed on three contexts: organizational, external environmental and innovation. The study found significant factors that differentiated adopters and non-adopters of e-commerce included technological ... These improvements can also lead to an increase of information and communications technology resource efficiencies. However, two national environmental factors (information infrastructure and demographics) are particularly important because they relate to the availability of technologies in use and the characteristics of customers, respectively. Factors affecting growth of E Business in India 1. How, and to what extent, e-commerce affect the environment in a city? << Globalization and E-commerce I: Factors Affecting E-Commerce Diffusion in China by Z. Tan and W. Oyang predominantly rural population helps to explain the low penetration rates of computer ownership and Internet users in China. Found inside – Page 9However, the lack of resources in organizations is found to be negatively influencing the e-commerce adoption. ... The results show that e-commerce adoption by SMTEs is affected by environmental factors: lack of national infrastructure, ... This study attempts to take a comprehensive look at e-commerce development in a developing country, Botswana, which has a very good and well managed economy. Business environment is therefore, the total of all external forces, which affect the organization and the business operations (Kotler &Armstrong 2004). Retrieved October 16, 2020, from http://www.simplynotes.in/enotes/mbabba/electronic-commerce/factors-affecting-e-commerce-key-drivers-of-ecommerce-forces-fueling-e-commerce/, Frue, K., & Frue, K. F. K. (2018, May 29). Interview data collected from 84 firms are used to illustrate a hypothesis-testing methodology linking various decision-maker, innovation, and environmental . Found inside – Page 1257... viewed as factors affecting the adoption of ICT by SMEs. Also, Thong and Yap (1995) studies the impact of organizational and environmental factors on e-business adoption with emphasis on the role of CEOs (chief executives officers). Business is affected by different factors which collectively form the business environment. Six factors in ecommerce success: 1. (n.d.). /Contents 12 0 R Globally, roughly 45% of people are connected to the internet. /Contents 15 0 R >> /CropBox [0 0 595.2199707031 842] Some of them are Electronic Transactions Act, Intellectual Property Rights, Amendments to the Evidence Act, Content Regulation, Tax Issues and Import and Export Procedures. Found inside – Page 107Studies carried out in developed countries to investigate the factors inhibiting adoption of e-commerce have looked at organizational perspectives, owner/manager perspectives and environmental perspectives (for example, Lawson et al, ... INTRODUCTION In today's world, given the current turbulent environment, businesses around the state and the new business is being born. First, let's talk about why so many e-commerce businesses struggle in the first place. Yet there's another potential benefit to buying from ecommerce shops: it can help save the environment. endobj /Contents 21 0 R /Resources 26 0 R Most researchers have been concentrated on the e-commerce adoption in the world. Found inside – Page 323... viewed as factors affecting the adoption of ICT by SMEs. Also, Thong and Yap (1995) studies the impact of organizational and environmental factors on e-business adoption with emphasis on the role of CEOs (chief executives officers). Change ), on Macro Environmental Analysis of The E-commerce Industry, Porter’s Five Forces Analysis of The E-commerce Industry, https://www.ecommerce-now.com/images/ecommerce-now/PEST.htm, https://pestleanalysis.com/pest-analysis-of-eretail-leader-amazon/, http://panmore.com/amazon-com-inc-pestel-pestle-analysis, https://smallbusiness.chron.com/role-macro. In this study, we will model the impact of factors affecting e-commerce adoption to the SMEs performance. Found inside – Page 322It was observed through the analysis that e-commerce factors are dependent on each other and that the government has a major role toward e-commerce adoption in Jordan. The role of government was observed directly to affect e-commerce ... The independent variables applied in this study are perceived risk, guarantee return policy, perceived image of website, transaction security and consumer database safety. This report will outline these factors as it correlates to the e-commerce retail industry. The macro environment consists of society, government, rules, and tax, politics, technology, economics etc. In the end, there are more opportunities presented. The newer empirical study on e-commerce adoption that offered various factors was conducted by [7]. For the staff members to get to and from work, energy is expended during the commute, and the business also uses energy during the initial construction of the building. Are they clocking up even more miles in their car than they would have done going to the shops? Found insideElectronic commerce typicallyinvolves peopleusingaworldwide networkof computers—the Internet—to conduct business. Thelistof environmental factors affecting ecommerce diffusion islong, andthecases indicate thatthesefactorshave different ... Some basic legal and technical infrastructures to support secure e-commerce were available since 1998. In a brick and mortar shop, the building needs to have display lighting, temperature regulation, security lighting, cash registers, and shop fixtures installed. The long term environmental impacts of e-commerce are still to be seen. /Thumb 13 0 R /Type /Catalog 5.1.3 Managerial Characteristics and Perception of E-commerce 140 5.1.4 Factors Affecting E-commerce Adoption 140 5.1.5 How Factors Interact to Determine the Extent of E-commerce Adoption 142 5.1.6 The Role of the Local Business Environment 145 5.1.7 Summary of Research Findings at C1Alpha 145 5.2 C2Beta 147 The paper trail of doing business can be reduced with ecommerce as well, using online newsletters and electronic receipts. The Role of Macro Environment in the Retail Industry. Found inside – Page 60Our chapter will briefly review the theoretical antecedents for each of these factors and then we will provide a set of hypotheses. BACKGROUND: SMES AND EXTERNAL FACTORS AFFECTING E-BUSINESS Competitive Intensity Many researches explain ... In this study, we will model the impact of factors affecting e-commerce adoption to the SMEs performance. Found inside – Page 119Most of the literature on SMEs' e-commerce adoption focuses on factors that affect the adoption decisions or factors that ... Previous studies have also found that the decision to adopt is influenced by environmental factors such as ... This study was grounded in the technology acceptance model and the innovation . Most retail companies operate within the sphere of influence outside the company that shapes how companies do business, or “macro environment”. The factors analyzed include that of political, economic, social, and technological- with environmental and legal often times being included. There are many external environmental factors that can affect e- business. Electronic commerce describes the buying and selling of products, services, and information via computer networks including the Internet. Hanum & Sinarasri (2017) there are several factors affecting e-commerce adoption by Small Medium Enterprises. Ecommerce retailers benefit from political stability. Environmental Factors DiscussionThe study's results indicate that technological factors, organizational factors, environmental factors, and individual constructivism tend to affect SMEs' adoption of e-commerce in Ghana. Employees typically work from home, or commute to a more convenient location. 3 0 obj /MediaBox [0 0 595.2199707031 842] Found inside – Page 154154 Managing e - commerce in business MACRO - ENVIRONMENT Technological , economical , physical , political , international ... revolves around the consumer decision - making process and the different factors influencing that process . << /Rotate 0 One sociocultural dynamic in particular that impacts the e-commerce industry is  increasing wealth disparity. When running an ecommerce store you have to worry about the user experience above all else. This classic work chronicles how New York, London, and Tokyo became command centers for the global economy and in the process underwent a series of massive and parallel changes. /CropBox [0 0 595.2199707031 842] Found inside – Page 301CHAPTER 11 THEORIES AND FACTORS AFFECTING ELECTRONIC COMMERCE ADOPTION IN SMALL AND MEDIUM ENTERPRISES (SMES): A REVIEW ... of factors are discussed including technological, organizational, entrepreneurial and environmental factors. 1. Pakistan. One study cited in the report suggests that online shopping may have a lower carbon footprint than traditional in-store shopping because of more efficient logistics. Weighing-up the environmental benefit of e-commerce is perhaps not as easy as it first seems. endobj It's expected of entrepreneurs, as well, to be aware of how much competitors are charging for their goods. There is the opportunity for growth in developing countries for e-commerce businesses. Found inside – Page 27So far , most frameworks lack of identification of the responsible entities who are in charge of those key factors affecting the success level in electronic commerce environment . Consumer Level It is worth noting that the ultimate ... Found inside – Page 146... 2018; Platt & Gebbie, 2018) “Environmental factors of electronic commerce” in the digital shopping stages (Zhang, ... 2017) Customer age Economic factors affecting electronic Product price commerce Customer gender Political factors ... Found inside – Page 247Also, small firms may choose sometimes to adopt E-Marketing, E-Commerce or E-business as a result of external forces and ... Since the study was designed Figure 2. external and internal environmental factors affecting the adoption 247 ... implementation of e-commerce projects [6]. /Parent 2 0 R This condition creates an opportunity for the company to expand or diversify its business in developed countries. /Contents 24 0 R This book demonstrates that the relationship of consumption to the environment needs careful analysis by environmental and social scientists and conveys some of the excitement of treating the issue scientifically. << Given rapid technological change and the breadth of the system, the section cannot be considered either comprehensive, or time-proof. Here are the five most important factors for success in e-commerce that you can't afford to ignore. E-Commerce for Organizational Development and Competitive Advantage provides insight on the challenges related to the management aspects of e-commerce and its influence over organizational development. Several studies have investigated factors affecting e-commerce performance [13-18]. << Moreover, B2C e-commerce interface, information quality, security, and feedback services /Rotate 0 This also doesn't include the energy that's expended by consumers driving to and from the shop. For the time-crunched or the just plain lazy among us, online shopping offers clear rewards. The nature of micro environment is very much dependent upon macro environmental factors. One of the factors is the evolution and progression of technology businesses. Factors Influencing E-Commerce Development Implications for the Developing Countries. Environmental ambiguity can be caused by the lack of successful analysis of the environmental issues affecting the business. Commercial Environment affects the practice of business in general, and here, e-business in particular. >> /Parent 2 0 R /Contents 9 0 R Adolescence is a time when youth make decisions, both good and bad, that have consequences for the rest of their lives. Some of these decisions put them at risk of lifelong health problems, injury, or death. /CropBox [0 0 595.2199707031 842] The macroenvironment includes the physical environment, sociocultural forces, demographic forces, economic forces, science and technology, and political and legal forces. << This is especially true If a business is distributing or expanding in places like Asia which comes with a lot of Red tape. Brands like Amazon have invested heavily in technology. Environmental factors too have a special importance in the context of Ecommerce industry. customers, competitors - that driven Malaysian SMEs to adopt E-Commerce may influence the benefits these SMEs gained by adopting such technologies. Found inside – Page 107Table 2: External Factors Affecting SME Ability to Acquire E-Commerce Benefits Clients/Customer Industry The Ability of Clients to Conduct E- Commerce Level of Industry Support for Change Public or Niche Market Information and Education ... This book brings together the most cogent themes for an introduction to e-business and constitutes a valuable contribution to formalising common themes for teaching the subject in higher education. Introduction. /StructParents 218 ©2021 BuzzFeed, Inc. All rights reserved. The threat lies in the decrease of disposable income and the corresponding decrease of the macro-environment of the industry. This occurs when there’s an availability of increased disposable incomes in developing markets which ultimately increases the company’s financial performance. An e-commerce company’s investment in information technology can improve its competitive advantage and protect the business from industry competitors. 1. Definition of E-Commerce Electronic Commerce (EC) is where business transactions take place via telecommunications networks, especially the Internet. The retail industry is often under pressure to develop and implement socially responsible business practices. This chapter provides an insight into the factors affecting the business-to-business e-commerce adoption and the implementation in the small- and medium-sized enterprises (SMEs). It assists the firm managers to understand the key factors of e-commerce to focus on improving satisfaction, trust, and loyalty of their online customers, which, in turn, enhances their e-commerce services and business success. There are many common reasons for the e-commerce struggle, and stores in different industries will face different . SWOT analysis. In addition, understanding factors affecting e-commerce adoption help managers of SMEs to predict e-commerce usage rate and evaluate the future growth of e-commerce. Abstract: Over the past time, the dramatic growth of e-commerce has made Vietnam as one of the most potential markets in ASEAN. Economic recession is another key macro environment indicator that can affect Amazon. Nazir, M. and Zhu, X. >> each factor is re-studied to fit to market of Iran. 9 Factors That Impact Ecommerce Sales. ( Log Out /  Ultimately, whether it’s the opportunity to increase disposable income or threat of an economic recession, the economic factor poses a high impact threat on the e-commerce industry. Shameless plug alert: I managed to put together my own online shop, dogscorner, and get it looking reasonably attractive without even one iota of design know-how! /CropBox [0 0 595.2199707031 842] The findings show the SMEs that were driven to adopt E-Commerce by customers demand are less likely to experience the reduction of operational cost. /Rotate 0 As a result, this research aims to address this gap and explore both facilitating Correct environmental assessment makes marketing decisions more successful. The choice of domain name in the e-commerce is difficult process requiring assessment of many factors. The book provides detailed explanations in the context of core themes such as customer satisfaction, ethics, entrepreneurship, global business, and managing change. Research on social factors in e-commerce has not explored in depth the drivers of adoption when e-commerce innovations are deployed within social networking sites. /Kids [3 0 R 4 0 R 5 0 R 6 0 R 7 0 R 8 0 R] endobj In this study, e-commerce adopters are classified according to White et al.'s (1998) labels, namely traditionalist, straddler, and innovator. Micro-environmental components are related specifically to the organization, whereas macro environmental components are broader in nature & affect the entire industry of the region or country. ( Log Out /  Found inside – Page 263An individual consumer behavior model often includes influential internal and external factors that affect the buyer's decision process and the process for making a purchasing decision. Figure 9.1 shows a consumer behavior model. When it comes to the digital environment, a major issue for companies can be the constant need for adaption in coherence to the change and acceleration of technology and services. For example Chinese economy is slowing these days and this Chinese recession is considered a threat to Amazon business expansion. Don't get overly smug just yet, because online shopping still uses energy in the form of packaging materials and the fuel used for deliveries. 6 0 obj It has also made communication more efficient, faster, easier, and more economical within the industry. The support provided by the government fosters continuous expansion in relevant markets. Found inside – Page 656Only a few studies have directly examined how TOE factors affect the ability of firms to derive value from e-business innovation (Zhu et al., 2002, 2004; Ramamurthy et al., 1999; Iacovou et al., 1995). Zhu et al (2004) argue that the ... Those factors are technology, organizational, environment and individual. The results of the study show that environmental factors affecting the adoption of e-commerce include the internet marketing factor and customer/logistic factor. Moreover, the macro-environmental factors cannot be eliminated through the efforts of the marketing department. Technology not only creates new products for retail companies to sell, but also plays a major role in the way e-commerce retail companies do business. For example what do people do with all the time they have saved by shopping online? /CropBox [0 0 595.2199707031 842] x��\ێ�ƙ�7�w�Kh���F�v� <62��_PTI⎚THJ��[$��>þ���")i�ݹ���_������?T�h~�/�{��ެ�W_}��ݯ�����/��KS���՛�x4ԭ��|�n~|��|���6�yޙ0��g��_�Yc�\v��W:2QDe��4 The work's added value is research taking into account the relationships between groups of factors essential for the development of the e-commerce market in cities and the factors that became the effects of this activity. The literature tends to address this complexity by categorising the factors under more general headings. >> >> Retrieved from https://pestleanalysis.com/pest-analysis-of-eretail-leader-amazon/, Greenspan, R. (2019, May 20). ( Log Out /  You can buy the week's groceries and. This study sought to establish the influence of technology, organization, and environmental factors on the adoption of e-commerce. This book explodes the transformation myth by demonstrating that the Internet and e-commerce are in fact being adapted by firms to reinforce their existing relationships with customers, suppliers, and business partners. 4 0 obj /Thumb 16 0 R /Type /Page stream This survey also found out poor EC Adopted Banking System as an external obstacle in e- Regulation of product pricing. /Contents 18 0 R The aim is always to take better decisions for the firm's progress. Additionally, government-supported road and transportation infrastructure which is utilized to move merchandise and bring customers to retail locations is another benefit. /Thumb 22 0 R Nazir, M. and Zhu, X. 1 0 obj PESTEL is an acronym and the letters stand for Political, Economic, Social, Technological, Environmental and Legal.Also, this framework helps to keep track of all the changes happening in the environment. It is due to the higher consumer interest, participation, and increased demand. What factors affect the adoption of e-commerce among small and medium-sized enterprises (SMEs)? There are cross-border e-commerce laws and policies. Chinese market is one of the key markets where Amazon want to penetrate. FACTORS AFFECTING THE ADOPTION OF E-COMMERCE IN SMES The plethora of studies on IS and, in particular, e-Commerce demonstrate that there are a wide range of factors affecting adoption. It is common for managers to assess each of these factors closely. A PEST analysis outlines the framework of macro-environmental factors used in the environmental scanning component of business strategic management. endobj endobj All of this is eliminated in an e-commerce shop. When running an ecommerce store you have to worry about the user experience above all else. In sum, the environmental factors exerted a significant effect on the input slack of e-commerce listed firms, and these factors had different effect directions and strengths. /StructParents 217 ASIAN DEVELOPMENT BANK 6 ADB Avenue, Mandaluyong City 1550 Metro Manila, Philippines www.adb.org Embracing the E-commerce Revolution in Asia and the Pacific Asia is the world's largest e-commerce marketplace and continues to grow rapidly. Ultimately, the changes in social values and trends impact the goods being sold and how retailers relate to consumers. These factors include the effectiveness of governance in the Institutions dimension (Sachs and Warner 1997), and the conduciveness of the traditional commercial environment in the Commerce dimension (Travica 2002). Understanding Ethical, Social, And Political Issues in E-Commerce Internet and its use in e-commerce have raised pervasive ethical, social and political issues on a scale unprecedented for computer technology. /Parent 2 0 R define the size and characteristics of the potential market for e-commerce and the availability of skills to support e-commerce deployment. Even with the opportunity for many technological advancements, the threat of cybercrime still looms. Fortunately, there are different tools available to easily see and compare prices of competing ecommerce . Retrieved from https://www.ecommerce-now.com/images/ecommerce-now/PEST.htm, Factors affecting E-Commerce /Key Drivers of E-commerce/ forces fueling e-commerce.