CHAPTER ONE

INTRODUCTION

1.1 Background of the study

The significant rise in globalisation via the use of Information and Communications Technologies is one of the most powerful factors influencing the world’s economy and business today (ICTs). According to Kaynak et al. (2005), the fast development of E-commerce has altered the character of business so rapidly and pervasively that it is no longer revolutionary, but rather evolutionary. Many writers have claimed that e-commerce offers many possibilities to improve company economics (Oliver, 1999), and some have even claimed that e-commerce is the “great equalizer” (Quinn, 1999). If these assertions are correct, then companies should profit from the adoption of these technologies in some way. The World Wide Web’s (WWW) capacity to enable communication has prompted companies to consider new methods of conducting their operations (Herbig and Hale, 1997; Pattinson and Brown 1996; Hamill, 1997). Due to the significant hype around the medium, it seems that company owners have been hesitant to engage in the e-commerce environment, despite the fact that many experts anticipate spectacular development in the near future. In the “new economy,” if the current ratio between business to consumer (B2C) and business to business (B2B) markets maintains, the (B to B) market should be 100 times bigger than the (B2C) market (Caralli, 1995). There is an opportunity to undertake substantial academic study on e-commerce from the viewpoint of the B2B business against this backdrop of uncertainty and possibility (Venkatesh, 1998). This article investigates current thinking on B2B transactions in the “old economy” and then applies it to e-commerce. The effect of these translations on companies that use a “new economy” strategy in their operations is next explored. There are almost as many definitions of E-commerce in the literature as there are contributions. E-commerce is defined by the World Trade Organization (WTO) as “the production, distribution, marketing, sale, or delivery of products and services via electronic means” (Baker & McKenzie 2001 cited Kaynak et al 2005). The idea is defined by Shultz and Baumgartner (2001) as “the buying and selling of information, goods, and services via computer networks.” Because there are no widely accepted definitions of E-commerce, the definition provided by Globerman et al (2001 cited Kaynak et al 2005) will be used in this study, namely, “any economic transaction in which the buyer and seller come together through the electronic media of the Internet, form contractual agreements concerning pricing and delivery of particular goods and services, and a transaction in which the buyer and seller come together through the electronic media of the Internet, form contractual agreements concerning pricing and delivery of particular goods and services and The definition of Kalakota and Whinston (1997), on the other hand, contains four distinct viewpoints. (1) Communication perspective – E-Commerce is the delivery of information, products/services, or payments over telephone lines, computer networks, or any other electronic means; (2) Business process perspective – E-Commerce is the application of technology to the automation of business transactions and workflows; (3) Business process perspective – E-Commerce is the application of technology to the automation of business transactions and workflows; (4) Business process perspective – E-Commerce is the application of technology to the automation of business transactions and workflows; (5) Business process perspective – E-Commerce (3). (4) Online perspective – E-Commerce provides the ability to buy and sell products and information on the Internet as well as other online services; and (5) Service perspective – E-Commerce is a tool that addresses the desire of firms, consumers, and management to reduce service costs while improving the quality of goods and increasing the speed of service delivery; and (6) Service perspective – E-Commerce is a tool that addresses the desire of firms, consumers, and management to reduce service costs while improving the quality of goods and increasing the speed of service

1.2 Statement of research problem

Business has a critical part in a country’s economic growth and development. Furthermore, Onugu (2005) said that commercial businesses are an important component of the country’s economy since they are critical in providing job possibilities, thus generating wealth for the middle class and decreasing the country’s economic burden. According to Okeke et al (2016), they account for 60 to 70 percent of all employment generated globally, in both developed and developing nations. As a result, many African governments have made small-scale business funding a priority. As a result, their development and expansion are critical to the economy’s growth. Despite the fact that e-commerce adoption provides numerous opportunities for companies to expand in Nigeria, most firms seem to be hesitant to do so. According to Raheem, Vishnu, and Ahmed (2014), many SMEs in Nigeria are unable to incorporate e-commerce into their operations owing to the high cost of implementation and their lack of financial resources. This is the primary reason behind Nigeria’s slow adoption of e-commerce. Apart from a lack of sufficient financing, many SMEs are hesitant to invest such a large sum of money in e-commerce since they cannot guarantee that it would help them develop. According to Nasir (2009), Nigeria’s infrastructural problems have hampered the seamless adoption of E-commerce. Many e-commerce businesses in Nigeria have struggled to satisfy their consumers as a result of this. Customers of Jumia, Konga, Hello Foods, and Uber, for example, often complain about the timeliness of their deliveries or the service’s arrival time. Many consumers have complained about Uber drivers arriving late and canceling rides without reason. Many of these delays are caused by traffic congestion caused by faulty roads and drainage systems. Furthermore, the lack of adequate internet connection has delayed many businesses’ operations and prevented them from adequately satisfying their consumers. Furthermore, there have been security issues with e-commerce in Nigeria, making it difficult to establish e-commerce activities in the country. Nigeria has been identified as the nation with the greatest risk of internet fraud (31 percent). As a consequence, many Nigerians think their credit card information on the internet is not safe. This acts as a deterrent to companies, increasing their apprehension about adopting e-commerce. As a result, the purpose of this research is to look at the impact of e-commerce on company performance.

1.3 Objectives of the study

The primary objective of the study is as follows

1.     To find out the effect of e-commerce investment costs on the growth of business enterprises in Abuja.

2.     To find out the effect of e-commerce security on customer retention of business enterprise in Abuja.

3.     To find out how to improve e-commerce for business growth in Abuja

1.4 Research hypothesis

H01: e-commerce investment costs has no effect on the growth of business enterprises in Abuja.

H02: e-commerce security has no effect on customer retention of business enterprise in Abuja.

1.5 Significance of the study

The significance of this study cannot be underestimated as:

l  This study will examine   Evaluation of the Effect of E-Commerce on Business Performance in a Business Environment in Abuja (Dept: Business Administration)

l  The findings of this research work will undoubtedly provide the much needed information to government organizations, business organizations and academia.

1.6 Scope of the study

This study examines evaluation of the effect of e-commerce on business performance in a business environment in Abuja. Hence selected SMEs in Abuja who have online presence shall serve as enrolled participants for this study.

1.7 Limitations of the study

This study was constrained by a number of factors which are as follows:

just like any other research, ranging from unavailability of needed accurate materials on the topic under study, inability to get data

Financial constraint , was faced by  the researcher ,in getting relevant materials  and  in printing and collation of questionnaires

Time factor: time factor pose another constraint since having to shuttle between writing of the research and also engaging in other academic work making it uneasy for the researcher

1.8 Operational definition of terms

E-commerce: commercial transactions conducted electronically on the internet.

Business environment: connotes external forces, factors and institutions that are beyond the control of the business and they affect the functioning of a business enterprise. These include customers, competitors, suppliers, government, and the social, political, legal and technological factors etc

Business performance: entails measuring the actual performance of a business against intended goals.