Anonyo Dissertation FINAL PDF

Impact of electronic commerce on ready-made garment sector of Bangladesh A case study on ProgWears University of Wales Institute, Cardiff (UWIC)
Submitted by: Anonyo Hossain Student ID: ST09005912
Impact of electronic commerce on ready-made garment sector of Bangladesh
Declaration
I declare that this dissertation comprises my own products. The literature of other authors has been rewritten and adequate credit to the author is provided with citation. Additionally, This dissertation has not been accepted in the past and is not concurrently submitted in candidature of any degree.
Anonyo Hossain
Signature: _______________________________
Date: ___________________________________
Abstract
Electronic commerce (e-commerce) has changed the business environment and had a dramatic impact on the nature of businesses today. Consequently, firms are responding by reshaping their strategy and business models in light of the complexity that the Internet has induced in the business environment. This study sought to explore the implications imposed by e-commerce and the Internet over the ready-made garments (RMG) industry of Bangladesh. The literature review will reveal key aspects with respect to firm processes and business landscape that is being overly transformed by variables related to ecommerce. The study will sought to (1) investigate drivers and barriers of e-commerce adoption process (2) whether business process reengineering (BPR) can be facilitated with the deployment of e-commerce (3) If a firm can attain key sources of competitive advantages by utilizing e-commerce and the Internet in highly competitive environments. Furthermore, a number of data collection methods are going to be mentioned in the methodology and which methods were implemented to complete the data analysis portion. Finally, the study will recommend a solution to overcome some of the barriers that are impeding the adoption of e-commerce in Bangladesh. In addition, it will suggest suitable topics for future research in light of recent e-commerce developments.
Acknowledgement
This dissertation is a result of the contribution of more than a single individual and the author would like to single out the following for their outstanding contribution.
First and foremost, I would like to thank Mr. Irfanuzzaman Khan for his constant support and guidance. He was kind enough to provide thorough feedback about my dissertation, and taught me valuable knowledge and countless other skills. I am deeply indebted to Mr. Irfanuzzaman Khan.
Furthermore, I would to thank management of progWears and respondents of the questionnaire for participating in the study. As they provided key information towards the completion of this study and reach its conclusion.
Table of Contents
Declaration .......................................................................................................................... 2 Abstract ............................................................................................................................... 3 Acknowledgement............................................................................................................... 4 Chapter 1: Background of the study .............................................................................. 11
1.1 Theoretical background ......................................................................................................11 1.2 Background of electronic commerce in Bangladesh.........................................................15 1.2 Background of ProgWears..................................................................................................16 1.3 Statement of the problem and significance of the study...................................................17 1.3 Significance of the study ......................................................................................................19 1.5 Research questions ...........................................................................................................19
1.6 Research objectives ..............................................................................................................20 1.7 Beneficiaries of the study.....................................................................................................21 1.8 Limitations of the study.......................................................................................................21 1.9 Framework of the dissertation............................................................................................22
Chapter 2: Literature Review ......................................................................................... 23

2.1 The changing face of e-commerce ......................................................................................23 2.2 E-business defined................................................................................................................26 2.3 Benefits of e-commerce........................................................................................................27
2.3.1 Businesses.......................................................................................................................27 2.3.2 Consumer........................................................................................................................28 2.3.3 Globalization ..................................................................................................................29 2.3.4 Lifestyle ..........................................................................................................................29 2.4 E- Commerce and Competitive advantage ........................................................................30 2.5 E-commerce and BPR..........................................................................................................33 2.6 Factors that inhibit Internet adoption by Businesses and consumers ............................36 2.6.1 No Perceived benefit ......................................................................................................36 2.6.2 Lack of trust....................................................................................................................37 2.6.3 Infrastructure ..................................................................................................................38 2.6.4 Lack of technical skills, knowledge and expertise .........................................................39 2.6.5 Cost of Implementation ..................................................................................................41 2.6.6 Security issues ................................................................................................................42 2.7 Theoretical Models in relation to E-commerce adoption .................................................43 2.7.1 Cognitive/Affective Risk and Trust Model ....................................................................43 2.7.2 The Technology Acceptance Model (TAM) ..................................................................47
Chapter 3: Methodology .................................................................................................. 51

3.1 Research approach...............................................................................................................51 3.1.1 Theoretical Approach .....................................................................................................52 3.1.2 Methodological Approach ..............................................................................................54 3.2 Research Categories.............................................................................................................55 3.2.1 Exploratory Research..................................................................................................55
3.2.2 Descriptive Research ......................................................................................................56 3.2.3 Explanatory Research .....................................................................................................56 3.3 Research Strategy ................................................................................................................57
3.3.1 Focus Group ...................................................................................................................57 3.3.2 Case study.......................................................................................................................57 3.3.3 Experimental research ....................................................................................................58 3.4 Sources of collecting data ....................................................................................................59 3.4.1 Primary Data...................................................................................................................59 3.4.2 Secondary Data...............................................................................................................60 3.4 Selecting research sample....................................................................................................60 3.4.1 Sample Research population ..........................................................................................61 3.42 Sampling frame................................................................................................................61 3.4.3 Sampling procedure........................................................................................................62 3.5 Data collection method and instruments ...........................................................................62 3.5.1 Survey.............................................................................................................................62 3.5.2 Questionnaire..................................................................................................................63 3.5.3 Interview.........................................................................................................................64 3.6 Data analysis and presentations .........................................................................................64 3.7 Validity and Reliability........................................................................................................65 3.8 Constraints of Research ......................................................................................................65 3.9 Ethical considerations..........................................................................................................66
Chapter 4: Data analysis.................................................................................................. 67

4.1 Secondary Data Analysis .....................................................................................................67 4.2 Primary data Analysis .........................................................................................................68 4.3 Focus Group Survey ............................................................................................................85 4.3.1 E-commerce, value and supply chain .............................................................................85 4.3.2 Barriers at implementing e-commerce in Bangladesh....................................................86 4.3.3 Areas of improvement in relation to EC in Bangladesh .................................................87
4.3.4 Reach increased customer base and enhance CRM using EC........................................87 4.3.5 Supply chain Intergration using Internet technology .....................................................88
Chapter 5: Conclusion and Recommendation ............................................................... 89

5.1 Research Questions ..............................................................................................................89 5.2 Justification of Research Objectives ..................................................................................93 5.2.1 Benefits and pitfalls of EC..............................................................................................93 5.2.2 factors that enable e-commerce adoption process ..........................................................94 5.2.3 Internet adoption in Bangladesh .....................................................................................95 5.2.4 E-commerce and competitive advantage........................................................................96 5.3 Recommendation..................................................................................................................97 5.3.1 Attempt to resolve issues................................................................................................97 5.4 Limitations of the Study ......................................................................................................99 5.5 Implications for Practitioners ...........................................................................................100 5.6 Implication for Further Research ....................................................................................100
List of References ........................................................................................................... 101 BIBLIOGRAPHY........................................................................................................... 120 Appendix 1 ...................................................................................................................... 141 Appendix 2 ...................................................................................................................... 159 Appendix 3 ...................................................................................................................... 163 Appendix 4 ...................................................................................................................... 164 Appendix 5 ...................................................................................................................... 165
List of Figures
Figure 1.1: E-commerce categories .................................................................................... 12 Figure 2.1: E-commerce Timeline...................................................................................... 25 Figure 2.2: E-commerce benefits ....................................................................................... 27 Figure 2.3: Porters Five Forces Model.............................................................................. 31 Figure 2.4: Porters Generic Strategies .............................................................................. 32 Figure 2.5: Steps in BPR Implementation .......................................................................... 34 Figure 2.6: World Internet Penetration Rate for 2010........................................................ 39 Figure 2.7: Concern Level relative to payment method ..................................................... 43 Figure 2.8: Cognitive/Affective Risk and Trust Model...................................................... 45 Figure 2.9: TAM Model ..................................................................................................... 48 Figure 2.10: Model of the Antecedents of Perceived Ease of Use ................................. 49
Figure 2.11: Satisfaction-Based Information System Success Model (SISM)................... 50 Figure 3.1: Research Types ................................................................................................ 52 Figure 3.2: Theoretical Approaches ................................................................................... 53 9
Figure 4.1............................................................................................................................ 69 Figure 4.2............................................................................................................................ 70 Figure 4.3............................................................................................................................ 71 Figure 4.4............................................................................................................................ 72 Figure 4.5............................................................................................................................ 73 Figure 4.6............................................................................................................................ 74 Figure 4.7............................................................................................................................ 75 Figure 4.8............................................................................................................................ 77 Figure 4.9............................................................................................................................ 78 Figure 4.10.......................................................................................................................... 79 Figure 4.11.......................................................................................................................... 81 Figure 4.12.......................................................................................................................... 82 Figure 4.13.......................................................................................................................... 83 Figure 5.1: Proposed Solutions........................................................................................... 97
10
Impact of electronic commerce on ready-made garment (RGM) sector of Bangladesh A case study on ProgWears
1. 0
Chapter 1: Background of the study
1.1 Theoretical background
The impact of e-commerce has been overwhelming and invasive. It has affected individuals, organizations and society as a whole (Etemad, 2004). However, e-commerce readiness is questionable, especially in developing countries (Shalhoub & Qasimi, 2006). Chaffey (2009) states e-commerce as simply the process of buying and selling using the Internet. The author further elaborates, it involves much more than just electronically mediated financial transactions between businesses and customers. The broader view on ecommerce defines it as all electronically mediated transactions between organization and any party it deals with. On the other hand, Kalakota & Whinston (1996) defines ecommerce somewhat differently; the authors perceive it as a promising application that encompasses the buying and selling of information, products and service via computer networks. The Internet is seen as a powerful commercial medium, due to the fact it facilitates the global sharing of information (Cullen, 2006). The significance of ecommerce may vary from business to business. However, most companies would report e-
11
commerce to have brought major changes to the business environment (Fox, 2009). Customers, marketplace and company resources will vary (Chaffey, 2009), therefore applicability of e-commerce (EC) will differ, resulting in the following categories1.
Figure 1.1: E-commerce categories
C2B B2C B2E
B2B
EC categories
C2C
Source: Chaffey, 2009 * B2B - Business to Business Business to business e-commerce is commonly known as electronic data interchange (EDI). EDI is achieved on a direct link between two businesses. It can be achieved using an Internet connection. This enables businesses within the network to exchange information electronically. B2B e-commerce is the most popular form of e-commerce (Tanewski, 2003).
1
A thorough definition of e-commerce categories can be found in Appendix 3
12
B2C - Business to Consumer Business to Consumer e-commerce is rather new. The consumer can access the system of the supplier to make transactions. It is still a two-way function, however, is usually done solely through the Internet (Rule, 2002). C2B - Consumer to Business Consumer to Business is a growing arena where the consumer requests a specific service from the business (Dlabay, Burrow, & Kleindl, 2009). B2E - Business to Employee Business to Employee e-commerce is popularizing. This form of e-commerce is more commonly known as an intranet. Intranet is a web site developed to provide employees within an organization with relevant information. The intranet is usually accessed through the organizations network. Though it can and is often extended to an entrant who uses the Internet and would need a sign-on and password for access to be granted (Simon, 2001). C2C - Consumer to Consumer These sites are usually some form of an auction site. The consumer lists an item for sale within the commercial auction site. Other consumers access the site and place bids on the items. The site then provides a connection between the seller and buyer to complete the transaction (Morley & Parke, 2009).
13
E-commerce Impacts
It can be noted that e-commerce impacted how firms relate with its customers, trading partners, employees, and other businesses. The effects of e-commerce are so profound, that it earned the name e-impact (OECD, 2004). Moreover, it brought major changes to many of the internal and external aspects of the organization (MacGregor & Vrazalic, 2004). Considering accounting, e-commerce facilitates firms accounting process via webbased accounting software (Fox J. , 2001) and accounting information systems (AIS), the accountant or Information system (IS) user must be proficient in navigating through these systems (Gelinas, 2008). However, it had the most profound influence on marketing process of the firm as e-commerce is primaliry about selling online or the ability to transact online. This is known as e-marketing or digital marketing. According to IDM (2010) e-marketing is applying digital technologies (email, web, mobile/wireless) to contribute to marketing activities to acquire and retain profitable customers. This is done through recognizing the importance of digital technologies and developing a planned method to enhance customer knowledge and finally delivering targeted marketing communications and online services that are in sync with invidual needs. This shows how e-commerce brought changes to both the procedures within the organization and the way the business interacts.
14
1.2 Background of electronic commerce in Bangladesh
Bangladesh is located in South Asia. It is the second largest river basin in the world. The country shares its borders with India and Myanmar (Burma). The country is very densely populated (Central Intelligence Agency, 2010). According to the World Bank (2009), the population of Bangladesh is 160 million, and population and labor force growth are 1.5 and 2.4 percent respectively. Considering long-term trends, the nations GDP has been growing steadily in the past two decades. From 1998 to 2008 it grew by 72 percent. Bangladesh has a large portion of the population that lies well below the poverty line, 40 percent to be precise. This negatively affects rate of literacy (population age 15+), on the other hand literacy rate increased from 53 percent in 1988 to 64 percent at end of 2008. Bangladesh has a low literacy rate and high poverty. These factors affect the adoption process of e-commerce by businesses and consumers in the country. A Study titled Towards a connected Bangladesh: Socio-impact of Internet in Bangladesh Economy was conducted by the Boston Consulting Group (BCG) (2009) on behalf of Telenor group, company having majority share of Grameenphone, and the largest
telecommunication operator in Bangladesh. The study yielded important data concerning Internet usage in Bangladesh. It shows only 4% or 5 million of the population has access to the Internet via mobile and fixed Internet service providers. These figures are expected to rise to 18.3 million by 2020, given appropriate initiatives and policy frameworks are in place. This equate to roughly 10 Internet users per 100 inhabitants. House household
15
Internet adoption level is at 32% and businesses at 66%. However, these figures are fairly lower than neighboring countries of Bangladesh. In terms of overall GDP contribution in 2020 for Bangladesh, the report states that Internet is expected to contribute 2.6% of total GDP and suggests that a 10 percentage in Internet penetration is correlated with a 1% increase in the annual rate of new business formation. Consequently, it will lead towards the creation of over 129,000 jobs alone in Bangladesh by 2020. The bulk of the GDP contribution coming from the increased productivity Internet users enjoy, in services, manufacturing, including agriculture, as well as increased diversification of sources of income (BCG, 2009). The government of Bangladesh made efforts to prioritize growth in this sector. Recently, submarine optic-fiber cable was introduced and also led to the creation of Digital Bangladesh. Its primary goal is wide-scale digitization by 2021 through application of third generation information and communication technology. This will accelerate national decision-making process and enhance performance of the governments functions at all levels (The Daily Star, 2009).
1.2 Background of ProgWears
Progwears was established at the end of 2008. The company realized there was a small portion of the market that was not being catered by companies in Bangladesh. Other companies affiliated in RMG sector in Bangladesh were only catering to large-scale
16
buyers only. Where mid scale, small and individual buyers were not being catered. The company entered the RMG sector by extorting this opportunity. ProgWears first started selling on ebay.com, directly from Bangladesh. They were targeting niche markets that wanted specialized products. The companys local presence enabled them to cut prices by a significant amount. The company currently has two branches, one in Dhaka, Bangladesh and the other one in Montreal, Canada. ProgWears directors soon realized that were room for expansion, they decided to target wholesale buyers instead of individual item buyers. It marketed its products and services through multiple online trading websites. The company also offers services to its clients; they have the flexibility to customize any sort of apparel according to their needs. Its wholesale customers originate mainly in Australia, United Kingdom, USA and Canada and its eBay customers reside in 10 to 15 countries all over the world.
1.3 Statement of the problem and significance of the study
Companies affiliated in the RMG sector of Bangladesh are highly dependent on export to foreign countries. In this sector, electronically mediated transactions and communications are a prerequisite. E-commerce provides opportunities to exploit new areas of competitive advantages and surpass other economies via greater global access and by reducing transaction costs. Moreover, businesses are able to find ways to increase efficiency with the use of electronic technology. Along with these benefits, e-commerce brings higher knowledge component, rapid development of new products, smarter marketing and better
17
management skills. Overall, it has contributed towards raising standards for companies around the world. Companies in the RMG sector cannot sustain without having ecommerce within their business model (MED, 2009). The business environment of RMG sector in Bangladesh is cut throat and highly competitive. In addition, due to increasingly complex and interconnected global environments, these led to the creation of a new level of sophistication. These factors combined with the countrys low literacy rate, high price for Internet access, and lack of technological infrastructure contribute towards inhibiting the adoption of e-commerce in Bangladesh. The culture itself can pose as a barrier to e-commerce adoption. GeertHofstede (2009) states that the culture is reluctant to take risks and try out new things, they like to keep things as it is. He states, the countrys population has high uncertainty avoidance index. This affects the diffusion of the Internet from its country of origin, the USA. E-commerce is an important element in the manufacturing industry, such as the RMG sector. Since, it enables them to participate in the worldwide markets and take advantage of globalization. This study will seek to determine the right framework for e-commerce solutions and evaluate its potential for success. It will address whether organizational needs are being served and if e-commerce is worthwhile to invest in and adapt to (Hermeking, 2005).
18
1.3 Significance of the study
There is a lack of literature in relation to this topic. Therefore, it will serve as guidance to those that are seeking to enter this industry. The research paper will be conducted in order to examine the impact of electronic on the ready-made garments industry of Bangladesh, ProgWears is closely affiliated in this sector and it sells its goods and services using the internet. Therefore, its directors are going to be interviewed in order to extract key information. This paper will determine the positive aspects of e-commerce and if there is a trade off in incorporating e-commerce into the business model. E-commerce is of current issue and it is likely to affect the present and future of businesses in Bangladesh. This paper will be specifically important for practical and theoretical application. It will be based on primary and secondary data, it order to strengthen the literature and arguments contained in this study. 1.5 Research questions
The following research questions were established: What are the effects of e-commerce in the ready-made garments industry of Bangladesh? What are the key factors that influence the adoption process of e-commerce by businesses and consumers? What are the barriers that inhibit the adoption process of e-commerce by businesses and consumers?
19
1.6 Research objectives
The following research objectives were established:
To highlight the benefits and pitfalls of incorporating e-commerce to business models of companies in Bangladesh that are affiliated with RMG. It is important to understand both the advantages and disadvantages of e-commerce, in order to truly understand if e-commerce is favorable.
E-commerce brings organization wide changes, implementation of e-commerce may be a challenge of its own. To reduce these challenges, factors that facilitate ecommerce adoption process are going to be explored.
To understand if the population in Bangladesh is well acquainted with e-commerce and if its adaption will positively affect the nations economy. If results are positive, this may encourage the government of Bangladesh to offer assistance and guidance to facilitate e-commerce adoption.
To examine whether e-commerce can serve as a source of competitive advantage.
20
1.7 Beneficiaries of the study
The beneficiaries of this research paper are practitioners, academics and theorists. This paper will serve as a starting point for practitioners that are looking to incorporate ecommerce within their business processes. Moreover, academics and theorists may use this paper to extend their knowledge related to e-commerce.
1.8 Limitations of the study
The following were deemed as limitations in conducting this research: The study is limited to one country and one company. Sample size is relatively small, larger sample size would produce more accurate results. Most are reluctant to take part in surveys and questionnares. Study is conducted by only person, therefore there is a lack of manpower to conduct this research. There are time and financial constraints. Researcher bias may affect the information acquired during interviews.
21
1.9 Framework of the dissertation
Chapter 1: Introduction
Chapter 1 introduces the topic that will be discussed throughout the dissertatation. The topic has been narrowed down to "Impact of electronic commerce on the ready made garment industry of Bangladesh. It will essentially provide an insight about Bangladesh, progWears and theory related to e-commerce.
Chapter 2: Literature Review

This chapter will discuss various point of views of other authors and scholars that contributed towards literateure related to ecommerce.
Chapter 3: Methodology
This chapter will discuss the research method used in this research paper. Research method allows the researcher to plan and design the whole research in a proper way and shows the right direction to achieve an outcome. So the chapter explains the reasons behind the use of selected research method and the advantages by using the specified research approach.
Chapter 4: Data analysis

This chapter discusses and analyses the information acquired from the survey conducted with the consumers and management of progWears. As a result, the researcher generate a conlusion and a recommendation.
Chapter 5: Conclusion and recommendation

This chapter will discuss the research recommendations, limitations, further research on this topic and also describe how managers can get benefit or managerial implications of this research.
22
2. 0
Chapter 2: Literature Review
2.1 The changing face of e-commerce
The book Global electronic commerce published in 1999, for Massachusetts Institute of Technology (MIT) states a much narrower definition of e-commerce than what is available in books today. Its author, Westland (1999) defines e-commerce, as Electronic commerce is the automation of commercial transactions using computer and communications technologies. It can be noted that this definition does not include interorganizational systems such as e-mail, telephone, fax or Internet telephone. It only includes transactions between firms and individuals that involve the exchange of money and goods. Then Westland elaborates by stating the involvement of Internet in business-to-business e-commerce. The author cited that it reduces errors, cycle time and thus reducing marginal costs. This shows no significance in terms of gaining competitive advantage; e-commerce is viewed as a cost cutting device. From 1999 to 2004, ecommerce has evolved significantly and it plays a much broader role in businesses. Chaffey (2004) added a broader definition for e-commerce, transactions can either be buy-side e-commerce or sell-side e-commerce this shows e-commerce now plays a role in the procurement and purchasing processes of the organization Chaffey dedicated the second half of the book to e-commerce as the broader term surrounding all electronic transactions that take place within the organization. Chaffeys definition shows that ecommerce involvement within business processes has increased since 1999. It no longer
23
includes business to individual transactions only, it also considers inter organizational aspects as well, such as business processes. The definition of e-commerce was further added and became much broader in nature. In 2009, book titled E-commerce was published in India. Its author Bajaj (2009) defines ecommerce as, paperless exchange of business information using electronic data
interchange, electronic mail, electronic bulletin boards, electronic funds transfer, World Wide Web and other network-based technologies. E-commerce not only automates manual processes and paper transactions but also helps organizations move to a fully electronic environment and change the way they operate. Then the author states Organizaions and countries around the world are seized of the impact of e-commerce will have on the world economy, globalization of markets, international trade, financial markets etc. To analyze these three definitions of e-commerce, the first definition used by MIT students in 1999 was much narrower in nature. Chaffey (2004) defines used a broader definition. Lastly Bajaj (2009), talks about the impact of e-commerce on economies around the world. In a nutshell, e-commerce was first used to reduce human errors and decrease costs, and then most of the company stakeholders are affected by e-commerce. Lastly, e-commerce not only affects companies, it impacted economies around the world and how international trade is conducted. As e-commerce will evolve over the years, so will its definitions.
24
Figure 2.1: E-commerce Timeline

Comcast in the United States offered the first online commercial service, the goal was to generate income from Golden United mainframe computer during non-business hours.
1969
1988
The first online bookstore was opened, named Antiquarian Databases of International.
1994
Yahoo! was founded by two electrical engineering students from Stanford University.
1995
Amazon was founded eBay was founded
1998
Larry Page and Sergey Brin starts Google.
1999
Internet Domain names are considered as property, the U.S Supreme Court rules.
2000
Google launches AdWords. A program that enables advertisers to purchase keywords that appears on google.com, when it is searched.
2003
Apple opens the iTunes store, the online software based music store. Myspace is founded.
2006
PricewaterhouseCoopers spends $16.9 billion USD on internet marketing. Google buys YouTube for $1.65 billion USD. Myspace doubles number of users, they now have 200 million users.
2008
200 million in the U.S have access to broadband internet connections. Apple sold five billion songs and opens the iTunes App store.
2009
14.9 million households in the U.S buy books online on a regular basis. Google accounts for 6 percent of all internet traffic.
2010
3 billion iPhone and iPod apps have been downloaded in less than 18 months via the App Store.
Source: Norman, 2010
25
Looking at the timeline of e-commerce (Figure 2.1), it can be noted that it is not a new topic and it has evolved significantly. Over the past two decades, many definitions of ecommerce have flourished and (Rob & Coronel, 2009). Its usage and applicability underwent changes numerous times (Feiler, 2000).
2.2 E-business defined2
IBM (2009) defines e-business (EB) as "the transformation of key business processes through the use of Internet technologies". IBM refers to organizational processes as key business processes, such as outbound logistics, inbound logistics, research and development, marketing and manufacturing. Whereas, Chaffey (2004) defines a similar approach, however, it varies since key business processes are considered to be purchasing and selling activities only. On the other, Jackson (2003) state e-business as being closely related to database marketing. Computers help store a comprehensive collection of interrelated data, which can be accurately manipulated or retrieved via Internet, Intranet and Extranet. Companies that implement e-business can easily monitor transactional and behavioral patterns of customers. This may be used to communicate with customers and can benefit all the elements of the marketing mix. Overall, e-business helps companies improve performance efficiency and effectiveness in the marketing communications.
See Appendix 1 for detailed theory in relation to difference between EC and EB
26
2.3 Benefits of e-commerce

Figure 2.2: E-commerce benefits
Business
Lifestyle
E-commerce Benefits
Consume rs
Globaliza tion
2.3.1 Businesses
E-commerce benefits small startups, medium sized and large firms. It has given startups the opportunity to compete with bigger businesses. In the past, limited resources restricted the ability of small firms to reach beyond their local markets. The Internet enabled small companies to target buyers beyond their geographic boundaries (Longenecker, Moore, Petty, & Palich, 2006). The perceived benefits to organizations that adopted to ecommerce are wide ranging, it includes direct savings in costs and time, accuracy and quality of e-commerce messages, which results in closer relationship with partners (Ratnasingam, 2003). E-commerce reduces cost of procurement, during and post 27
transactions. With the help of Extranets, costs can be reduced when dealing with suppliers, by decreaseing task complexity, paper work and operational costs. Overall, it enables flexibility, control of production and essentially, it enables firms to be more suitable to their customers, whether other firms or end users (Baourakis, Kourgiantakis, & Migdalas, 2002). Moreover e-commerce enhances overall company image, reduces workforce and provides an easier and faster customer service (Aladwani, 2003).
2.3.2 Consumer
Online shopper or e-consumers are considered to be innovators, more educated, and belongs in a higher socio-economic status. They tend to differ from typical traditional shoppers (Dennis, Merrilees, Jayawardhena, & Wright, 2009). Consumers are able to
save money by shopping online, study conducted by Brynjolfsson and Smith (2000) confirms, empirical results shows that prices are 9 to 16 percent lower online than conventional stores. Consumers have unparalleled reach to products, services and information online via Internets vast global networks (Chiang & Dholakia, 2003). Through website design inclusion of polls, customization, videos, chat room and blogs customers can communicate with companies more easily and effectively. This creates a more interactive shopping experience (Bernoff & Li, 2008). Consumers can download music, which replaced CDs, Internet entertaintment and surfing replaced watching television, reading books or shopping (Gordon, 2004). The internet decreases both search costs and time, thus making the purchase process a lot smoother (Brousseau & Curien, 2007). Moreoer, consumers can make purchases from anywhere in the world, they rely on 28
multiple sources and can easily compare products side by side (Jansson-Boyd, 2010).
2.3.3 Globalization
Globalization is based on the business orientation that the world is being more homogeneous and disparity between national markets is fading (Czinkota & Ronkainen, 2004). The process of globalization is mainly driven by technological advancements, such as e-commerce and the Internet. It is a source of growth and productivity gains for national economies (Kraemer, 2001). According to the International Chamber of Commerce (2010), information technologies open up huge possibility for greater efficiency through ecommerce. The Internet can be used to deliver information instantly anywhere in the world and at any time. Furthermore, it provides greater access to information, knowledge, and gives access to raw materials of innovation. Overall, it facilitates economic efficiency through global knowledge base economies. Advancements in information technologies and telecoms are reshaping business practices, both internally and relationships with suppliers and customers (ICC, 2010).
2.3.4 Lifestyle
It would not be an overstatement to say, that the Internet brought major changes to the lives of people around the world. Millions of websites and Internet applications emerged since its introduction, the society as a whole underwent major changes (NetRatings,
29
2003). The Internet caused somewhat of a revolution in the society. The world can communicate and express ideas and feeling over the Internet. It provides anonymity, balance of power, online shopping, opportunity to work from home and freedom of speech (BBC, 2001). This may result in greater customer input, thus leading to improved products and services that cater to needs and wants of consumers more effectively.
2.4 E- Commerce and Competitive advantage
In an economy where information is a raw material, the quality of conversion to ideas and knowledge and sharing of this these are crucial factors. These factors can be effectively managed using e-commerce, which will enable firms to become more innovative (Collins, Gordon, & Terra, 2006). By maintaining sustained innovations, companies can gain competitive advantages in the long run (Bergfeld, 2009). Furthermore, e-commerce can be used more than just to decrease costs and increase revenue. Companies can gain key competitive advantages by providing a range of quality services, meeting unique customer demands (mass customization), retain and gain customers (Botten, 2008). However, Michael Porter (2008) defines firms competitive environment quite well using the five forces model. The five forces model (figure 2.3) was used by many other authors such as Whiteley (2001) in his book, E-commerce: Strategy, Technologies, and Applications. Porter refers to the competitive environment as other companies that are operating in the same market space and selling related goods. Michael Porter extends
30
elaborately on competitive environment using his five forces model on competitive position (figure 2.3) (Porter, 2008).
Figure 2.3: Porters Five Forces Model
Source: Porter, 2008 * Firms attain competitive advantage when they can produce superior products that other companies cannot or offer similar products as competitors at a lower price. New
technology, fluid exchange of information and improved communication methods all play an important role in shaping the firms competitive advantage (Porter, 2008). Information technology (IT) is much more than just computers (Armistead, 2004), using advanced IT companies can communicate better internal procurement systems and externally and automate factories (InfoWorld, 2000). Overall it creates new ways to outperform rivals, 31
spawn into whole new businesses, offer superior products for less. As a result, companies can offer more value to its customers. Moreover, firms gain cost leadership, differentiate its offerings, cost focus and differentiated focus (figure 2.4). Which in terms contribute towards gaining key competitive advantages using IT systems (Porter, 2008). Top managers are looking at business process reengineering (BPR) to drive their initiatives at acquiring competitive advantages (Patnayakuni, n.d), the next point will elaborate on this topic. Figure 2.4: Porters Generic Strategies
Source: Porter, 2008 *
32
2.5 E-commerce and BPR
James Champy and Michael Hammer introduced the concept of business process reengineering (BPR) in the early 1990s, the authors published many books related to the topic, resulting in the popularization of BRP (Hammer & Champy, 2003). It can be noted that implementation of e-commerce brings organization wide changes. The management philosophy of business process reengineering (BPR) comes into play (James, 2006) as it attempts to radically change everything from management styles, values and measures (Mills, Dye, & Mills, 2009), e-commerce will affect reengineering more than IT (Radhakrishnan & balasubramanian, 2008). BPR deals with a systematic restructuring of the organization management and technology to optimize key processes (Jacobson, Griss, & Jonsson, 2009). On the other hand, Patnayakuni (n.d) defines BPR as a planned program for change with the intention to increase performance significantly. In addition, Davenport and Short (1990) proposed that combined use of IT and business process redesign could alter companies and develop new business processes. The authors state BPR will improve processes, as Taylors scientific management once did, it was arranged into a five-step model of achieving process redesign.
33
Figure 2.5: Steps in BPR Implementation
Step 1: Set business goals and process objectives
Step 5: Implement prototype of the process
Step 2: Identify the processes to be redesigned
Step 4: How can IT leverage in the process redesign
Step 3: Understand and measure existing processes
Source: Davenport and Short, 1990 * However, Majchrzak and wang (1996) state this model does not include management practices, it does not state the importance of managerial mindset. Furthermore, making organizational changes alone does not necessarily bring improvements. The authors determined this by studying cycle times of 86 printed circuit board departments at various electronic companies, subsequently the study was published as a Harvard Business Review.
34
According to empirical data presented above, it can be noted that BPR deals mostly with organizational change. In order to help improve the successfulness of BPR programs, change management need to be carried out effectively (Marc J. Schniederjans, 2002). BPR lacks practicality, as BPR is not realistic for companies operating in a market where change is wide spread and BPR projects are costly (Stanford-Smith & Chiozza, 2001). Even Hammer, founder of BPR acknowledges, only 30 percent of companies achieve the kinds of performance they had hoped for. Chambly rejected BPR in 1994, in his book Reengineering Management. Mainly due to the fact BPR is too cold and mechanistic in nature (Hammer, 1996). Champy (1996) devoted his attention to the leadership of the organization. When it comes to managing change using science, principally when there is a major requirement to change human behavior to implement BPR successfully. Its major drawback is it simply lacks to address the human side of corporate change (Hammer, 1996). Therefore, it can be concluded that BPR lacks applicability in practice. It merely works in theory. However, e-commerce operations that are based on Internet technology will provide managers with unique opportunities to enhance their BPR efforts. It was found that information technology (IT) played a critical role in the success factor of BPR implementation (Wells, 2000). IT enabled organizations create an environment of accessible communication networks (Motwani, Kumar, Jiang, & Youssef, 1998). Wells (2000) examined a number of research related to why Internet should be used to implement BPR programs. His study concluded that the amount of management resources and employee resistance to BPR were not substantial to the success factor in BPR
35
implementation. He found numerous reasons as to why the Internet should be used in BPR. Firstly, it cuts costs by placing a business online. As a result these saved resources can thus be used more effectively to motivate users, such as employees, suppliers and customers. Internet can be used to generate a higher and quicker return on BPR investment, by resorting to a low-cost model and its ability to reach new and remote markets. Furthermore, Internet increases information efficiency, knowledge efficiency and knowledge acquisition (Wells, 2000).
2.6 Factors that inhibit Internet adoption by Businesses and consumers
2.6.1 No Perceived benefit
A study conducted by Statistics Canada interviewed firms about four particular perceived benefits of conducting business over the internet: lower costs, reaching potential customers, enhanced coordination with suppliers/customers/partners and reducing time to market. The study showed that it was more likely for larger firms to perceive benefits from the Internet than smaller firms (Uhrbach, 2006). Consumer may choose brick and mortar stores, rather than online stores as they think they do not offer any added benefits. Looking at American consumers, where Internet is predominant, only 13 million Americans adults shopped online, the remaining account for 90 percent that are yet to shop virtually. Still, two-thirds of the population, which is
36
around 66.5 million Americans are only browsing online, or window shopping in cyberspace, that would equate to a full 80 percent that never made purchases via the net (IntelliQuest, 2006). There are vasy array of benefits, however the adoption process is somewhat sprawling. This is mostly because consumer and firms lack technical expertise, percieved risk is high, lack adequate infrastructure, and find the adoption process to be costly (Esrock, n.d).
2.6.2 Lack of trust
There has been a growing use of the concept of trust within the Internet-based businesses. The term Trust is used by individuals concerned with information security and ecommerce. Trust is paramount and deserve special attention in e-commerce, as there is a physical separation of the buyer and seller, the buyer is physically there to touch and feel the product itself. Overall, this creates an environment of perceived insecurity (KarakeShalhoub, 2002). Lack of consumer trust in Internet payments has been a major drawback in the adoption process of e-commerce. Many surveys show that consumers lack of trust is directly associated to concerns over the security of payment data, mostly credit cards, around 95 percent of respondents worried their personal information would be misused. Moreover, e-commerce fraud directly affected trust of consumers. The major problem was reported to be auction fraud, where products or services bought online were not delivered or was not as expected (FBI, 2001).
37
Studies conducted by Nolan and Norton Institute-KPMG confirm trust is also a predominant factor in B2B e-commerce trades, businesses have adopted a wait and see attitude towards e-commerce mainly due to trust issues (Damen, Dubel, & Strikwerda, 2009). Even as Internet is becoming more secure, trading partners still do not feel safe, there is an insufficient amount of trust in the reliability of Internet-based commerce (Ratnasingam, 2003).
2.6.3 Infrastructure
There is a large amount of infrastructure that e-commerce applications require to operate effectively (Inmon, 2000). The Internet platform is an important aspect since most ecommerce applications operate over the Internet. Thus, Internet penetration and quality of Internet connectivity play an important role in e-commerce adoption process (Kamel, 2006). In comparison with developed countries, the process of e-commerce adoption in developing countries has been comparatively slow due to inadequate telecommunication infrastructure, low PC penetration and lack of opportunities for Internet service providers (Karake-Shalhoub & Qasimi, 2006). The telecommunication and Internet infrastructure in Bangladesh is said to be poor (Reza, 2009). Despite the presence of online Internet service in Bangladesh, its range is largely underutilized. In combination with high service charges, lack of awareness, poor telecommunication infrastructure, lack of government policies, and low purchasing power of clients within the country contribute towards inhibiting the e-commerce adoption process by both consumers and businesses in Bangladesh (Azad &
38
Islam, 2010). According to the world bank (2008), per 100 people in Bangladesh there are 28.5 that are fixed internet subscribers, 1.7 own personal computers and 4.6 are Internet users. Out of the total internet subscribers, only 7.2% are broadbad users. Lastly, the countrys total Internet users are estimated to be only 100,000. Which equates to a penetration rate of 0.4%, which is significantly lower than other Asian countries and rest of the world (Figure 2.6). Figure 2.6: World Internet Penetration Rate for 2010
Source: InternetWorldStats, 2010 * 2.6.4 Lack of technical skills, knowledge and expertise
Eric E. Schmidt, CEO and chairman of Google, stated, The Internet is the first thing that humanity has built that humanity doesn't understand, the largest experiment in anarchy
39
that we have ever had. This statement shows the lack of knowledge regarding the Internet. E-commerce applications and its success rate will depend on its users technical skills, knowledge and expertise (Lamersdorf, Tschammer, & Amarger, 2004). Many companies find e-commerce too complex to implement (Fielding, 1996 ) and there might be resistance towards change amongst employees. Since, they may fear the change brought on by technology (Lawrence, 1997). Most trading partners lacked in skills, resources and technical know-how in order implement strategies for a profitable ecommerce setup and maintenance (Ratnasingam, 2003). One of the main contributors of e-commerce start-up failure is lack of technical knowledge, derived from reluctance to invest in proper information technology, inadequate transaction records and strong desire to remain independent (Dennis, 2000). In Sweden, companies do not use e-commerce, as most consumers are not aligned with its technical implications and businesses lack technical knowledge (MacGregor & Vrazalic, 2007). Many small businesses in Bangladesh are located in rural areas, businesses operating in these areas are isolated from sources of e-commerce expertise (Khosrowpour, 2001). Most consumers that lacked technical knowledge not only did not shop online, they were reluctant to even go online. This lack of knowledge creates an environment of uncertainty, where both consumers and businesses feel insecure and unwilling to anything that has do with the Internet (Al-Qirim, 2004) and thus plays a major role as a barrier in the e-commerce adoption process.
40
2.6.5 Cost of Implementation Start up costs for implementing e-commerce projects can be very high. These include costs related to connection fees, hardware and software setup and needed maintenance (Ratnasingam, 2003). Financial resources within a small firm may pose as a barrier to ecommerce adoption (Tatnall, 2007). Moreover, companies that are operating in rural areas need to be constantly travelling to urban areas to acquire resources (equipement, knowledge) during the adoption process, which will result in added costs (Khosrowpour, 2001) . Studies show that cost and investment required for e-commerce application are a major barrier for small and medium sized enterprises (SMEs) than large institutions (Lamersdorf, Tschammer, & Amarger, 2004). Bangladesh has a poor power supply, for companies to be operational during power outages, uninterrupted power supply units are required, which results in additional costs. Computer and telecommunication equipment require high handling and processing fees during import, like duty and tax (Al-Qirim, 2004). In Bangladesh, residential fixed line tarriff is $1.3 USD/month ($15.6/year) and fixed broadband internet acess tariff is $53.9 USD/month ($646.8/year)
(InternetWorldStats, 2010). This can be a significant amount for consumers, cosidering 49.8 percent of the population is below the poverty line (UCSF, 2010), in addition, the Gross National Income (GNI) per capita is only is $516.06 US/year (DoingBusiness, 2010), which is less than the yearly subscription fee for broadband Internet (fee: 646.8 > GNI: 516.06). For firms, acessing finance for e-commerce can be an issue, 42.55 percent companies in Bangladesh reported accessing finance as a major constrait
(EnterpriseSurveys, 2010).
41
2.6.6 Security issues
A vast range of products and services are sold online, payments via credit or debit card are essential aspects to complete the transaction process (Obaidat & Boudriga, 2007). Security is recognized as a key barrier to e-commerce adoption by firms in all sectors (Kraemer, Dedrick, Melville, & Zhu, 2001). One of the primary challenges in ecommerce security is coming up with practical ways to secure payment transaction data (Oram & Viega, 2009). In order for consumers to complete a transaction online, they must be willing to share pertinent information such as their full name, billing address and financial information (Lin, Varadharanjan, & Wang, 2005). This raises trust and security issues amongst consumers. Consumer perceived risk related to online shopping and ecommerce was ignored and considered to be minor factor in the adoption process of online retailing (Jarvenpaa and Todd 1997). However, recently the Federal Trade commission (FTC) (2009) has considered risk and trust to be the primary obstacle to the growth of ecommerce. Studies conducted by White and Truly (1989) shows that perceived risk has been revealed to be negatively associated with purchase intent. Thus, consumers that perceive online shopping to be less risky are more likely to shop online and vice-versa. Cisco Internet Business solutions Group (IBSG) (2008) conducted a survey of more than 1,500 customers, in order to understand the behavior and perceptions in relation to online shopping and payments. 30 percent were worried about fraud, identified theft and other security breaches when shopping online, another 31 percent is afraid of losing the device the payment information is stored on. Figure 2.7 shows consumer concern level in relation
42
to payment method. It can be seen that number of consumers that are very concerned are significant in comparison to consumers that are only concerned.
Figure 2.7: Concern Level relative to payment method
Source: Cisco IBSG, 2008
2.7 Theoretical Models in relation to E-commerce adoption
2.7.1 Cognitive/Affective Risk and Trust Model
The CART model aims to examine the trust and risk issues related to B2C e-commerce, it conceptualized affective trust and affective risk based on the need-to-belong theory and the risk-as-feeling theory. Considering that affective trust and affective risk cannot be separated from their cognitive counterparts, adding these two parts form the theoretical
43
model. The following are definitions of the elements found in the CART model in relation to e-commerce (McKnight, Chodhury, & Kacmar, 2002). 1) Cognitive trust: this is divided into two parts. First there is a truster (customer) and second, there is the trustee (web vendor). The truster is reliant on the trustees abilities to solve the trusters needs, vendors temperament to act in the interest of the truster, and the vendors honesty and guarantee towards its customers. 2) Cognitive risk: The assessment of negative outcomes by an individual before making a transaction. 3) Affective trust: The trusters preventative feelings of bond between the truster and the trustee. 4) Affective risk: preventive or negative feeling of loss towards a risky environment. 5) Behavioral intentions: The trusters behavioral temperament to depend on the trustee. Existing literature do not suggest the differences between cognitive trust and cognitive risk, they are mistakenly treated as two sides of a coin. Cognitive risk is often thought to the same as distrust. Both cognitive risk and cognitive trust tap different elements of human perceptions. Cognitive trust tools measure the trusters beliefs about the trusters abilities, integrity and benevolence. On the hand, cognitive risk tools specifically measure the beliefs about the probabilities of threats related to negative situations (McKnight, Chodhury, & Kacmar, 2002).
44
Figure 2.8: Cognitive/Affective Risk and Trust Model
Source: Baumeister & Leary, 1995 * The CART model concentrates on analyzing the effects of affective trust and affective risk, resulting from the influence of website design and features on intention. The need-tobelong theory suggests that people are compelled persistently to form a deliberate, positive, long lasting and meaningful relationship (Baumeister & Leary, 1995). It can further influence how people process information. Consumers tend to use his/her own personality to recognize relationship partners. In many cases, employees tend to use their
45
own personality to personalize the organization they work for (Bergami & Bagozzi, 2000). In customer context, the identification process with an organization may progress from:
An atomistic attribute-by-attribute process to a holistic, gestalt match of their own defining characteristics (e.g., personality traits, values, demographics) with those defining the category (Ahearne, Bhattacharya and Gruen, forthcoming).
Both the organizational and customer context are important aspects to define the customer and organization (Ahearne, et al.). Brown (1986) examined people with high self-esteem are inclined to extend self-serving biases to their friends. People rate both self and same sex friend more favorably than other people. This group favoritism motivates them to behave beneficially towards their relationship partners (Bergami and Bagozzi, 2000). Alhearne et al. (forthcoming) found that:
Basically by creating psychological attachment to the organization, identification motivates people to commit to the achievement of the organizations goals and expend more voluntary effort on its behalf
The greater the feeling of belonging between the customer and the organization, the greater the probability the customer will choose the companys offerings over its competitors (Dutton, Dukerich, & Harquail, 1994), It enhances customer loyalty towards the brand. Furthermore, Bhattacharya & Sen, (2003) that strong relationship would stimulate product trial, word of mouth and feedback for future product improvement.
46
It is hard for web vendors to form a strong relationship with its customers, as the sellers are intangible and hard to access. Gefen (2002) suggests a solution, the web vendor can display social aspects via website appearance, reliability in delivering products, responsiveness to customer queries, assurance about its ability, credibility and security and be understanding to customer needs. Furthermore, online sellers are suggested to have a strong cyber social presence, thus creating a strong enduring long-term relationship between the client and the firm. This may be the driving force behind repeated online shopping and customer satisfaction (Lee, Pi, Kwok, & Huynh, 2003). These factors will create a positive relationship between the elements in the CART model and behavioral intentions.
2.7.2 The Technology Acceptance Model (TAM)
The technology acceptance model (TAM) is the most widely accepted model used to measure dispersion and acceptance of technology model. The model points out two viewpoints, perceived usefulness and perceived ease of use, these factors determine an individuals intention to use the technology (Keil & Konsynski, 1995). Information system researchers have approved the model, as it has been a solid source for reliable predictions of technology use (Adams & Todd, 1992). Davis (1986) proposed the TAM in his Doctoral dissertation. The model is based on a well renowned theory in the consumer behavior literature, the theory of reasoned action (TRA)
47
by Ajzen & Fishbein (1975). TRA suggests that consumer behaviors can be predicted by their intent, and in turn it can be used to predict their attitudes towards an action. Figure 2.9: TAM Model
Source: Park, Lee, & Cheong, 2007 * Figure 2.9 shows the path model that identifies the influence of external factors like system design user characteristics, job characteristics, disposition of the development or implementation process, political pressures, managerial structure, etc (Ajzen & Fishbein, 1980). TAM model by Davis (1989) suggests that information system usage is decided upon behavioral intention, which is observed as being mutually established by the users attitude concerning the usage of the system and the perceived usefulness of the system. Although, the TAM model is highly regarded by researchers, mainly due to its predictive power, the prudence of the model is considered to be its major limitation (Venkatesh, 2000). Prior to that, Venkatesh & Davis (1996) cumulatively developed the Model of the Antecedents of Perceived Ease of Use, which is represented below, in figure 11.
48
Figure 2.10: Model of the Antecedents of Perceived Ease of Use
Source: Venkatesh & Davis, 1996 * In addition to prudence, a key characteristic of research models is their ability to provide practitioners with prescriptive guidelines and be generally useful. However, the TAM model does not provide system designers with specific insights. Garrity & Sanders (1998) brought extensions to the TAM model by using additional explanatory variables derived from the model called the Satisfaction-Based Information System Success Model (SISM) (figure 2.11). The new model (SISM) provides a more complete and constructive picture than TAM suggested by Davis (1986). It provides a remedy by including (1) the decision support satisfaction dimension, this extends on the usefulness dimension of TAM, and it is mostly valuable in the consumer oriented webbased systems. (2) The SISM model has been established to clarify around 70 percent of the variance in organizational impacts. (3) Lastly, the SISM model integrates the quality of work life satisfaction dimension, which is specifically useful in organizational and social contexts. The TAM model or the improved SISM model can be used to measure the
49
acceptance of technology, is this case the adoption of e-commerce (Garrity & Sanders, 1998). Figure 2.11: Satisfaction-Based Information System Success Model (SISM)
Source: Garrity & Sanders, 1998 *
50
3. 0
Chapter 3: Methodology
This chapter will discuss methods for carrying out research questions, research problems, research techniques, process of primary and secondary data analysis, in order to accomplish the research objectives. This portion is required for both the author and readers, as it provides an oversight concerning the accuracy of the information and its origin. In order to effectively complete this portion, the term research needs to be first identified, though there are many definitions, most would define it to be investigating something in a systematic manner (Stake, 2010).
3.1 Research approach
Theoretical and methodological are two major research types (figure 3.1). Under theoretical there are deductive and inductive approaches. In methodological, there are qualitative and quantitative approaches (Bergh & Ketchen, 2009).
51
Figure 3.1: Research Types
Theoretical Approach Reseach Types Methodological Approach
Deductive Approach Inductive Approach Qaulitative Approach Quantitative Approach
3.1.1 Theoretical Approach
Deductive Approach
The deductive approach is dependent by a specific hypothesis. Often the researcher has a very focused statement in mind and the objective is to prove or disprove that particular hypothesis. A low level of control would subsist, where the researcher cannot do much to affect how the research is conducted. Data collection procedure is said to be loose or open. There is room for personal judgments of the researcher to be entered (BYU, n.d). It is often reffered to as top down approach (figure 3.2).
52
Inductive
Approach
Inductive approach works the other way around than deductive approach. It is often referred to as bottom up approach (figure 3.2) (BYU, n.d). The primary purpose of the inductive approach is to enable research findings to become apparent from the raw data, without any limitation brought on by structured methodologies. It is most commonly used for a variation of qualitative data analyses (Thomas, 2003). Inductive rather than deductive, works by reasoning and allows modifications of concepts to be made, the relationships of concepts are determined by the process of research. By having the goal to sustain accurate results that represent the reality of the situation (Ratcliff, 1994).
Figure 3.2: Theoretical Approaches
Source: Burney, 2008
53
The data analysis portion of this research will use the deductive approach, as the conclusion will be reached based on the literature presented in relation to e-commerce. Inductive approach will be used to analyze arguments presented. Which will be used to suggest future topics and make an adequate recommendation.
3.1.2 Methodological Approach
Qualitative Approach Qualitative research seeks to understand how individuals interpret their experiences, how they construct their worlds, and what meaning they attribute to their experience (Merriam, 2009). Stake (2009) confirms, he states qualitative research studies how things work. Most researchers would try to convey some of the story in experiential terms, to show the complexity of the background and treat individuals in a unique manner, yet in ways similar to other individuals (Stake, 2010). The process can be summarized as analysis of data such as words, interviews, pictures and objects (UConn, n.d). Quantitative research Quantitative research has been the dominant strategy for conducting business research. It is mostly concerned with measurement, which carries the advantage of reliability and validity (Bryman & Bell, 2007). Quantitative research is generally used to study research questions (Gall, Borg, & Gall, 2003). This method of research aims to classify features,
54
count them and construct statistical models, in an effort to enlighten what is being examined. In short, it involves analysis of numerical data (UConn, n.d). This study will use both qualitative and quantitative approaches to research. Quantitative approach will enable the researcher to analyze the quantifiable data acquired from various research strategies. Furthermore, qualitative approach will determine the thoughts and insights about e-commerce usage by the management of progWears.
3.2 Research Categories
All research can be viewed as being exploratory, descriptive, or explanatory (Singleton & Straits, 2004).
3.2.1
Exploratory
Research
Exploratory research is related to topics concerning in which very little is known. As a result, there are few guidelines that need to be followed and the research designs are less structured that in descriptive research (Richey & Klein, 2007). Most exploratory research is conducted for two purposes: (1) a preparatory examination of an issue for gaining insights (2) to gather information for the application to a problem (McNabb, 2004).
55
3.2.2 Descriptive Research
Descriptive research also known statistical research provides data concerning the population being studied. However, it only describes who, what, when, where and how of the situation, it will not describe the cause. Thus, it is used when the objective is to present a systematic explanation, which is factual and accurate (UOGuelph, n.d). In short, Descriptive research is more concerned with fact finding. It can be both quantitative and qualitative in nature (Richey & Klein, 2007).
3.2.3 Explanatory Research
Explanatory research studies are instigated not only to describe an incident. It is also used to test relationships between elements of a problem. These studies essentially utilize quantitative methods and are designed to seek answers to problems and hypotheses (Richey & Klein, 2007). This study will use both exploratory and explanatory research. It is said to be exploratory as it attempts to determine the drivers and barriers of e-commerce within the RMG sector of Bangladesh. In addition, explanatory is mentioned as it tries to demonstrate how some of the barriers to e-commerce adoption can be overcome.
56
3.3 Research Strategy
Research strategy is essentially the general approach and goals of the research study. The selection of research strategy is commonly established by the nature of the questions the researcher wishes to address (Gravetter & Forzano, 2009).
3.3.1 Focus Group
Focus group is a kind of qualitative research, where a group of people is invited to share their perceptions, opinions, beliefs, and attitudes concerning the study (Henderson, 2009). By individual interviews, observation or questionnaires (Gibbs, 1997). Focus groups provide key insights on various different views and the dynamics of interaction within a group. In contrast to other methods, it can be suitable for obtaining information from illiterate communities as well (Litosseliti, 2005).
3.3.2 Case study
The word case goes hand in hand with intelligence, case is something that can only be studied or understood when put into a framework. A case can be an individual or
57
group, community or organization. Thus a case study is one, which investigates these elements (Gillham, 2000).
3.3.3 Experimental research
Experimental Research is an effort by the researcher to claim control over all aspects that are going to affect the results of a given experiment. This will enable the researcher to predict the outcome (Key, 1997). The control over the variables of research is gained through a systematic and scientific approach. It also allows the researcher to manipulate and measure the changes in the variables more effectively (Srinagesh, 2006). This study seeks to analyze the effects of e-commerce on the RMG industry of Bangladesh. In order to do so, customers of RMG suppliers were interviewed to find how e-commerce shaped their business transactions with companies in Bangladesh, the focus group strategy was used. The case study strategy was used to gain in depth knowledge related to e-commerce collect and update information about that topic in the context of RMG industry of Bangladesh.
58
3.4 Sources of collecting data
There are two sources of data collection methods commonly used to conduct business research. Firstly, there is primary data collection method. Secondly, there is secondary data collection method.
3.4.1 Primary Data
Primary data is being collecting for the first time, the data collected by the researcher is unique and no one else has access to it, until it is published (TVU, n.d). It is necessary to find to data that cannot be found in secondary sources (Duval, 2005). Primary data can be found via observation, communication, interviews and questionnaires, etc . The data analysis chapter will discuss the primary data acquired through questionnaires handed out to consumers and a focus goup discussion was conducted with the management of progWears.
59
3.4.2 Secondary Data
Secondary data is data that has been previously collected by others; it may serve a different purpose to the research collecting data after it has already been published. It needs to be used with precaution, to see whether it is current, its origin and its validity (TVU, n.d). Secondary data was used to compile the literature review portion of this research. It used various journals and articles found in databases, books and websites. These sources were used to gather point of views of other authors.
3.4 Selecting research sample
The determination of a research sample is a common task for many researchers. The adequacies of the research samples continue to influence the quality and accuracy of research (Bartlett & Higgins, 2001).
The research population for this study includes consumers of the RMG suppliers of Bangladesh.
60
3.4.1 Sample Research population
Researchers choose a sample of the population being studied to have a sample size that is smaller and thus more manageable. The sample must be representative of the population and must provide key insights in the behavior of the wider research population (Adams & Brace, 2006). It would not be feasible to collect information from the whole population therefore a smaller and more workable sample size has been chosen.
3.42 Sampling frame & Size
There are numerous strategies that can be initiated to form a sample. The process would start off with a sampling frame, which is essentially a list of all elements within the population of interest, such as names and other contact information. The sampling frame in practice defines the target population from which the sample is drawn and to which the sample data will be generated (Herek, 2009). The data used to compile section 4.2 was gathered using questionnaires, handed out via email to RMG buyers around the world. These buyers are identified as consumers. ProgWears was reluctant to provide their customer contact details. Therefore, a list containing 200 contacts was acquired from the Bangladesh Garment Manufacturers and Exporters Association. Out of 200 emailed, only 150 responded to the survey,
61
reducing the sample size to only 150. Despite the small sample size, sufficient information was gathered to conduct an analysis.
3.4.3 Sampling procedure
The sampling procedure can be approached from two main ways: Probability sampling and non-probability sampling. The key feature of probability sampling is it includes everyone in the population, and each person has equal opportunity to be selected as a respondent (Adams & Brace, 2006). Whereas, in non-probability sampling method, the chance of an individual being selected as a respondent is unknown (Kotler, 2003). In this study, only non-probability sampling was utilized.
3.5 Data collection method and instruments
3.5.1 Survey
Survey gathers primarily by asking people questions. Information is collected either by means of interviews or questionnaires or focus group interviews. It is important to have a correct survey methodology, which includes principles about design, collection, processing and analysis of surveys. These factors are going to directly affect the accuracy
62
of the information and the cost of carrying out the survey (Groves, Fowler, Couper, Lepkowski, Singer, & Tourangeau, 2009). There are three surveys involved in this research. First two surveys were conducted with the management of progWears; the questionnaire included open-ended questions that probed to seek information related to company background and their e-commerce involvement. The last survey was carried out to seek information from the consumers of the RMG suppliers of Bangladesh.
3.5.2 Questionnaire
The questionnaire is method of communication between the researcher/interviewer and the subject. The questionnaire will usually have questions that are well articulated by the researcher to which he/she is trying to uncover answers to. It can be used for face-to-face interaction or for remote communication (Brace, 2008). This research was conducted in conjunction with three sets of questionnaire that has been utilized to gather information from consumers and the management of progWears.3
See appendix 2, 3 and 4 for copies of the questionnaires.
63
3.5.3 Interview
An interview is conducted by the interviewer (one who interviews/researcher), and the interviewee (one being interviewed/research sample). It is essentially a form of conversation that takes place between these two parties. This form of data collection method can be used to extort both quantitative data and qualitative data (Kotler, 2003).
An interview was conducted with the management of progWears. Where the researcher was the interviewer and the interviewee was the management. The goal of the researcher was to collect key qualitative data using this method.
3.6 Data analysis and presentations
Microsoft Excel was used for the purpose of analysis of the raw primary data. Primary data was collected through two sets of questionnaire. Chapter 4 will discuss results and findings from the questionnaires. In order to make it easy to navigate and make findings more understandable for readers, a set of graphs and charts are to be used.
64
3.7 Validity and Reliability
Seidman (2006) views validity as a question of the quality of craftsmanship. Validity is an important factor to effective research. If there is a portion of the research that is invalid, then the whole research is rendered meaningless. It is required for both qualitative and quantitative research. Careful sampling and appropriate instrumentation can increase data validity in quantitative research. Honesty, depth and richness will increase validity in qualitative research (Cohen, Manion, & Morrison, 2007). The meaning of reliability varies from quantitative and qualitative research. Reliability in quantitative research goes hand in hand with dependability and consistency over time, research instruments and respondents. In qualitative research, reliability is seen as replicability. It can be regarded as a fit between what the researcher record as data and the actual occurrence in the natural setting (Denzin & Lincoln, 1994).
3.8 Constraints of Research
The sample size was comparatively small to the size of population. This may go on to hinder accuracy of the results. The management of progWears was constantly on a busy schedule. Thus time spent interviewing them was short, information acquired was quite limited.
65
The validity of this research is somewhat questionable due to the biased selection of nonprobability sampling technique. It was difficult to come across satisfactory secondary data due to the nature of this topic.
3.9 Ethical considerations
During the course of the research, the researcher must be aware of the various ethical implications. The researcher must guarantee all parties interviewed that the information is solely for academic purposes. In order to gain valuable information, there must be an informed consent established, the agreement clarifies obligations and responsibilities of the participants and the researchers (Pastorino & Portillo, 2010). The researcher must respect the privacy and confidentiality of participants according to the ethical and privacy laws. These are two most critical ethical aspects that the researcher must keep in mind while conducting the research (Darling, 2000). The research must ensure trustworthiness; there must be an adequate representation of the truth. In doing so, it will enable credibility and making the research parallel to the criterions of internal validity. Moreover, these factors combined will ensure external transferability of the research (Hoonaard, 2002).
66
4. 0
Chapter 4: Data analysis
Chapter 4 will provide key information regarding the research in form of primary and secondary data. The primary data was collected from consumers of RMG industry of Bangladesh and from the management of progWears. Furthermore, this chapter will demonstrate the relationship between the theories mentioned in literature review and the data gathered from consumers and management.
4.1 Secondary Data Analysis
The RMG sector of Bangladesh is prioritizing exports to foreign markets. It has been a key driving force of the countrys economic development. In an effort to remain afloat with competition, companies all over the world are encouraged to take on outsourcing initiatives. Many of these companies are choosing to outsource their manufacturing portion to Bangladesh, where labor is significantly lower. Not only this enables them to decrease costs by a significant margin, it also enhances other processes. Since, valuable company resources are not wasted in manufacturing efforts. They can be allocated in other important aspects of the business, such as designing, research and development. The advancement of technology is the main factor that enabled companies to trade across borders, the emergence of the Internet and e-commerce has changed the face of business permanently. The Internet can be seen as an enabler of various business processes, on
67
other hand, it presents various barriers to businesses around the world. It would not be an understatement to say that businesses operating within the RMG sector in Bangladesh that in fact possess the technical knowhow. In order to implement and maintain e-commerce surroundings its processes will gain competitive advantages over companies that do not.
4.2 Primary data Analysis
This section is based on information gathered from 150 questionnaires, which were filled and returned by the participants. The participants are mainly businesses that transact regularly with RMG suppliers in Bangladesh. Key information was gathered using 14 close-ended questions and 1 open-ended question4.
See appendix 2 for questionnaire
68
Q1: To what extent would you agree that the Internet has changed your way of conducting business?
Figure 4.1
90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree
The data shows that 80 percent of businesses surveyed would agree the Internet to have changed their way of conducting business. This directly coincides with the theory mentioned in the previous chapters. Where Westland (1999) stated e-commerce with the support of Internet makes changes how a businesses function, it automates commercial transactions with the help of email. Subsequently Chaffey (2004) added e-commerce brings a lot more changes than only to commercial transactions, it also changes inter organizational aspects as well. Furthermore, Bajaj (2009) e-commerce to bring major changes to almost all of the processes, it enables companies following a manual processes
69
to fully automate them. Furthermore the author mentions that, Internet did not bring changes to organizations alone. It has changed the world economy. It throttled globalization of markets, international trade and financial markets. Q2: How long have you used the Internet to support business practices?
Figure 4.2
5 or more 4 to 5 years 2 to 4 years 1 to 2 years Less than one year 0% 5% 3% 2% 10% 20% 30% 40% 50% 60% 20%
70%
70%
This shows that 70 percent of the participants of the survey stated that they have been using the Internet to support business practices for 5 year or more. 20 percent has implemented the Internet for 4 to 5 years, and the remaining brackets represent marginal figures, all having a value under 10 percent. Looking back at figure 2.1: Timeline of ecommerce, it shows that online commercial services were offered as early as 1969, wellknown websites such as Amazon, eBay, Google and Yahoo! were all founded prior to 1998. Therefore, the Internet is not a recent invention. Hence, the findings presented in figure 4.2 are relative.
70
Q3: To what extent do you use the Internet for business purposes? Not including
employees using it for personal reasons.
Figure 4.3
1% 9% 10% Very often Often Seldom Not very often 20% 60% Not at all
The pie chart above represents 60 percent of the interviewed answered that they use the Internet for business purposes very often. However, the remaining 40 percent do not use the Internet as much. This can be true, since the Internet presents many advantages and it has numerous barriers that inhibit its adoption. The Internet enabled small companies to target buyers beyond their geographic boundaries (Longenecker, Moore, Petty, & Palich, 2006). It saves costs and time and enables closer relaitonship with partners (Ratnasingam, 2003). Firms can become more suitable to its customers and enahnces company image (Aladwani, 2003). These advantages explains why 60 percent of companies adopted to ecommerce. The remaining 40 percent that did not adapt to the internet can be linked to the
71
lack of technical expertise, percieved risk is high, lack adequate infrastructure, and find the adoption process to be costly (Esrock, n.d). Q4: For which of the following activities did you use the Internet?
Figure 4.4
6%
4% 20% Find business information Communicate with suppliers Buy business related products
40% 30%
Online recruitment/employment services Sold products/services
The data acquired shows that the majority, 40 percent used the Internet to buy business related products. This makes sense, as most of the consumers of the RMG suppliers of Bangladesh use the Internet to outsource their manufacturing procedure. Going back to chapter 2, it was said that the Internet and the e-commerce has been the main driver of globalization (Kraemer, 2001). Moreover, Information technology enables key information to be found easily and enhances communication between seller and buyer
72
(ICC, 2010). In figure 4.4, 20 percent of the companies use the internet to find informaiton and another 30 percent use it to communicate with suppliers. Q5: How did you find suppliers located in Bangladesh?
Figure 4.5
65%
70% 60% 50% 40% 30% 20% 10% 0% 3%
25%
5%
2%
The data suggests 65 percent of the companies found RMG suppliers in Bangladesh with the help of trade/industry related sites, 25 percent found them via search engines and a small 5 percent found suppliers through suppliers sites. The main factor driving participants to look for a solution online is due to the fact prices are 9 to 16 percent lower than conventional stores. Consumers have unparalleled reach to products, services and information online via Internets vast global networks (Chiang & Dholakia, 2003). This
73
explains the high number paricipants being able to find what they were looking for via online methods. Moreover, consumers can make purchases from anywhere in the world, they rely on multiple sources and can easily compare them side by side (Jansson-Boyd, 2010)
Q6: How important is the Internet when it comes to managing your customer service initiatives using online methods?
Figure 4.6
Unimportant
2%
Of little Importance
3%
Moderately Important
5%
Important
20%
Very Important 0% 20% 40% 60%
70%
80%
The data above shows that 70 percent of the participants were successful in managing their customer service initiatives using online methods. It was said that with the implementation of e-commerce, key competitive advantages by providing a range of quality of services,
74
meeting unique customer demands (mass customization), retain and gain customers (Botten, 2008). It was also found that, individuals communicate better online, it provides anonymity, balance of power, online shopping, opportunity to work from home and freedom of speech (BBC, 2001). This in terms may enhance customer service, as they are more likely to willingly provide feedback about the company offerings, which may be utized for future product improvement and development.
Q7: To what extent did you consider the trust factor before conducting a business transaction with an RMG supplier located in Bangladesh that you found online? Figure 4.7
A Great Deal
Much
Somewhat
Little
Never
75
This shows that almost all of participants considered the trust factor when conducing business with an RMG supplier from Bangladesh that was found via means of the Internet. Going back to the chapter 2, trust is paramount and deserves special attention in ecommerce, as there is a physical separation of the buyer and seller, the buyer is not physically there to feel the product itself and interact with the seller face to face. Overall, this creates an environment of perceived insecurity (Karake-Shalhoub, 2002). Lack of consumer trust in Internet payments has been a major drawback in the adoption process of e-commerce (FBI, 2001). Even as Internet is becoming more secure, trading partners still do not feel safe, there is an insufficient amount of trust in the reliability of Internet-based commerce (Ratnasingam, 2003). Studies conducted by Nolan and Norton Institute-KPMG confirms trust is also a predominant factor in B2B e-commerce trades (Damen, Dubel, & Strikwerda, 2009).
76
Q8: For what reason(s) have you chose to conduct business with an RMG supplier in Bangladesh?
Figure 4.8
20% 5% 10% 15% Availability Price Quality 50% Service Competitive pressures
The questionnaire survey shows that 50 percent of the participants chose to conduct business with an RMG supplier in Bangladesh due to the price factor. Second and third largest figures are represented by availability and competitive pressure factors, respectively. This can be supported by views of Botten (2008), the author suggests ecommerce can be used to to decrease costs and increase revenue. It enables companies to gain competitive advantages. It creates new ways to outperform rivals, spawn into whole new businesses, and offer superior products for less. As a result, offering more value to firms customers (Porter, 2008). It also gives access to raw materials that lead to
77
innovation (ICC, 2010), which covers the participants that advised they have conducted business with suppliers in Bangladesh due to the availability factor.
Q9: To what extent would you agree that the Internet has enhanced your communication process with RMG suppliers in Bangladesh?
Figure 4.9
Strongly disagree Disagree Neither agree nor disagree Agree Strongly agree 0%
10%
20%
30%
40%
50%
60%
70%
The majority strongly agreed that the Internet enhanced their communication process with an RMG supplier in Bangladesh. The world can communicate better using the Internet (BBC, 2001). The perceived benefits to organizations that adopted to e-commerce are
78
wide ranging, it includes accuracy and quality of e-commerce messages, which results in closer relationship with partners (Ratnasingam, 2003), companies can also communicate better and decrease task complexity and paper work using the Internet (Baourakis, Kourgiantakis, & Migdalas, 2002). In addition, e-business helps companies improve performance efficiency and effectiveness in the communications (Jackson, 2003). New technology, fluid exchange of information and improved communication methods all play an important role in shaping the firms competitive advantage (Porter, 2008). Information technology (IT) is much more than just computers (Armistead, 2004), using advanced IT companies can communicate better, automate internal procurement systems and external factories (InfoWorld, 2000). Q10: What is the likelihood of your company to make rapid changes in your business processes with the usage of the Internet?
Figure 4.10
10% 17%
15% Definitely 25% Very probably Probably Possibly 15% Probably not Very probably not
18%
79
It can be seen in the pie in figure 4.10 that the results are quite scattered. The majority, 25 percent of the participants stated it is very probable that they will use the Internet to make changes to business processes. On the other hand, there is a large portion of the participants that feel uncertain about business process reengineering (BPR). This is true since there are advantages of implementing BPR, along with many criticisms. Davenport and Short (1990) proposed that combined use of IT and business process redesign could alter companies and develop new business processes, the authors state BPR will improve processes, as Taylors scientific management once did. Information technology (IT) played a critical role in the success factor of BPR implementation; Internet increases information efficiency, knowledge efficiency and knowledge acquisition (Wells, 2000). Furthermore, IT enabled organizations create an environment of accessible
communication networks (Motwani, Kumar, Jiang, & Youssef, 1998). However, the concept of BPR underwent heavy criticisms, Majchrzak and wang (1996) state this model does not include management practices, BPR is not realistic for companies operating in a market where change is wide spread and BPR projects are costly (Stanford-Smith & Chiozza, 2001). Even its founder Hammer (1996) states BPR is be too cold and mechanistic in nature, he further adds that its major drawback is it simply lacks to address the human side of corporate change. It can be seen that BPR has both major advantage and disadvantages, which in terms played a role in the nature of results presented in figure 4.10.
80
Q11: To what extent would you agree that the Internet has enabled your company to gain key competitive advantages?
Figure 4.11
Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree
The Data in figure 4.11 shows that the majority would agree that Internet has enabled their companies to gain key competitive advantages. This can be backed by theory found in previous chapters. In todays economy, information and the quality of conversion to ideas and knowledge and sharing of these are crucial factors. These factors can be effectively managed using the Internet, which will enable firms to become more innovative (Collins, Gordon, & Terra, 2006). By maintaining sustained innovations, companies can gain competitive advantages in the long run (Bergfeld, 2009). The firms communication system and fluid exchange can be supported by Information system (IS), it will play an important role in shaping the companys competitive advantage (Porter, 2008). Porter eloborates, by
81
implementing new tehcnology, such as IS supported by the Internet will creates new ways to outperform rivals, spawn into whole new businesses, offer superior products for less, thus offering more value to firms customers. As a result, companies gain cost leadership, differentiate its offerings, cost focus and differentiated focus. As a result, firms can gain key competitive advantages using IT systems. Q12: How would you rate the technical knowledge of RMG suppliers in Bangladesh related to the Internet? Figure 4.12
45% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Excellent Very good Good Fair Poor 5% 8% 10% 32%
The majority of the participants stated that the RMG suppliers in Bangladesh had poor and fair knowledge related to the Internet. Lack of technical skills, knowledge and expertise is a major contributor that inhibits Internet adoption by businesses and consumers. Ecommerce applications and its success rate will depend on its users technical skills, knowledge and expertise (Lamersdorf, Tschammer, & Amarger, 2004). Many companies
82
would find e-commerce too complex too implement (Fielding, 1996), and employees fear change brough on by new technologies (Lawrence, 1997). Most trading partners lacked in skills, resources and technical know-how to implement strategies for a profitable ecommerce setup and maintenance (Ratnasingam, 2003). Furthermore, many new startups have a strong desire to remain independent, and do not seek proper guidance and fail to invest in proper information technology (Dennis, 2000). Many small businesses in Bangladesh are located in rural areas, businesses operating in these areas are isolated from sources of e-commerce expertise (Khosrowpour, 2001). Q13: Were you ever concerned with the factors(s) below when conducting business online?
Figure 4.13
25
24 50
Too costly Too difficult to use No need 30 Security, confidentiality or privacy concerns Other
100
83
Figure 4.13 show that the majority of the participants stated that they are concerned with security, confidentiality or privacy. The second largest portion stated conducting business is too difficulty. Other respondents stated that it is too costly to implement and have no need to conduct business online. Starting with the security factor, it is recognized as a key barrier to e-commerce adoption by firms in all sectors (Kraemer, Dedrick, Melville, & Zhu, 2001). One of the primary challenges in e-commerce security is coming up with practical ways to overcome it, when it comes to online payments (Oram & Viega, 2009). Costs can be very high when implementing e-commerce projects (Ratnasingam, 2003), small firms may have limited financial resources (Tatnall, 2007). Studies reveal cost can also be a major barrier for SMEs than larger institutions (Lamersdorf, Tschammer, & Amarger, 2004). As for the participants that stated that they have no need to conduct business online, it can be explained with theory revolving firms that percieve no benefit of conducting busines over the Internet. Larger firms are more likely to perceive benefits from the Internet than smaller firms (Uhrbach, 2006). In America, where Internet is predominant, 90 percent still shop did not shop virtually (IntelliQuest, 2006). Q14: Overall, How did implementing e-commerce add value to your business? Please elaborate and state details.
Most respondents stated by implementing e-commerce they were able to increase efficiency of their business processes. Many of the firms used it to make transactions with RMG suppliers in Bangladesh. Relating it to theory, Westland (1999) states it reduces errors, cycle time and thus reducing marginal costs. Most of the firms did not engage in sell-side e-commerce, it mostly consisted of buy-side e-commerce. This makes sense; e-
84
commerce plays a role in the procurement and purchasing processes of the organization (Westland, 1999). Firms can use e-commerce internally to automate manual processes; this in terms will change their way of conducting business operations, it will enable firms to move to a fully electronic environment.
4.3 Focus Group Discussion
Focus group of 5 managers of progWears has been surveyed to understand the implications of e-commerce on its business processes. The following is the summary of the data gathered from the focus group survey5.
4.3.1 E-commerce, value and supply chain
The management of progWears stated that they use e-commerce in some of the aspects of the supply chain. However, being a company based in Bangladesh they were somewhat fearful of the implications it would have if all processes were to be automated. Then the management stated we are what we are today, thanks to e-commerce and the Internet, so yes, it has significantly added value to our supply chain. They stated, that e-commerce is mostly used to plan, design and execute a few business processes; the company uses simple IT applications and provided a short training to new entrants. The management said
See appendix 3 and 5 for questionnaires
85
that e-commerce added most value since it linked supply chain activities, which enabled them to follow through orders much quicker, reduce costs and increased efficiency, as a result have satisfied customers. 4.3.2 Barriers at implementing e-commerce in Bangladesh
The management suggested that one of the barriers of implementing e-commerce in Bangladesh is finding the right people with the right knowledge to tackle with the complexity revolving EC applications. Lamersdorf, Tschammer, & Amarger (2004) suggested a similar view, the success rate of EC applications is dependent on its users technical skills, knowledge and expertise. ProgWears disregarded cost as barrier when implementing EC, most of the hardware was already available, on the other hand the software used were costly, but the company viewed it as an investment. The management perceived infrastructure to be the major barrier of implementing EC from Bangladesh, there is a lack of adequate infrastructure in the country. The Internet platform is most important aspect, since most e-commerce applications operate over the Internet. Thus, Internet penetration and quality of Internet connectivity play an important role in ecommerce adoption process (Kamel, 2006). The mangement complained that the poor Inernet platform of Bangladesh really slowed things down in the company, simple tasks like emailing and attaching folders to customers were time-consuming. Bangladesh Internet service lacks in range and thus largely underutilized. In combination with high service charges, lack of awareness, poor telecommunication infrastructure and lack of government policies, cumulatively these factors inhibit the e-commerce adoption process businesses in Bangladesh (Azad & Islam, 2010).
86
4.3.3 Areas of improvement in relation to EC in Bangladesh
The management of progWears felt that were a lot of variables where improvement could be brought upon when conducting EC in Bangladesh. One of the members of the management stated, It wouldnt be bad to have faster Internet, it would significantly improve our efficiency and ability to communicate with our customers more effectively, but things like that are completely out of our hands. However, the management did mention that having the right equipment, and constantly seeking out most advanced technology are key drivers for success. On the other hand, the challenge remains, since the company would need employees with adequate expertise to operate new and advanced technology.
4.3.4 Reach increased customer base and enhance CRM using EC
The management said that, since all customers of progWears are located overseas, EC is the only method to increasing customer base. They constantly put up advertisements related to their offerings on various websites. Furthermore, the company engages in selling directly to end-users, this portion of the selling is conducted via eBay. The website is fully transactional and most payments are accepted via Paypal. This enables progWears to increase profit margin and reach greater customer base. The management said that it is not always about the reaching a higher customer base, it is more important to enhance customer satisfaction and build loyal customers. Most of the loyal customers are
87
accustomed to dealing with progWears and the management felt confident that they would not go anywhere else. E-commerce facilitates the whole process of customer relationship management (CRM), most of the customers require products that require a high level of customization, e-commerce capture and retain customer needs and requirements. This can be shared easily shared with other trading partners efficiently. This coincides with theory mentioned in chapter 2. Using e-commerce, companies can provide a range of quality of services, meeting unique customer demands (mass customization), retain and gain customers (Botten, 2008).
4.3.5 Supply chain Intergration using Internet technology
The management of progWears stated that they do not currently have any plans to integrate supply chain activities using Internet technology. Other trading partners in Bangladesh are not accustomed to the Internet technology. It just would not be compatible with the needs of others and most of them fear technology. To implement a complex technology and have diminishing returns would be a risk not worth taking. This can be explained since Internet penetration in Bangladesh is very low, total Internet users are estimated to be only 100,000, which equates to a penetration rate of 0.4% (WorldBank, 2008). Many companies would find e-commerce too difficult too implement (Fielding, 1996). Most trading partners do not have the skills and technical know-how required to implement strategies to effectively setup and maintain e-commerce applications (Ratnasingam, 2003).
88
5. 0 Chapter 5: Conclusion and Recommendation
This chapter will present the conclusions based on the research questions and objectives, which were determined in chapter 1 of the study. Furthermore, a recommendation will be included to provide a remedy to overcome the barriers of implementation process of ecommerce within the RMG sector of Bangladesh.
5.1 Research Questions
RQ1: What are the effects of e-commerce in the ready-made garments industry of Bangladesh? E-commerce has enabled ready-made garment suppliers of Bangladesh to target customers located overseas. In the past, smaller companies were not able to target buyers beyond their geographic area. Furthermore, small and medium sized companies with limited resources are able compete with larger counterparts (Longenecker, Moore, Petty, & Palich, 2006). It enabled firms in Bangladesh to incur in direct savings in cost and time and increase the quality and accuracy of messages sent via the Internet (Ratnasingam, 2003). Consumers of the RMG sector of Bangladesh are also benefiting from the variables related to e-commerce, technological advancements made outsourcing and globalization possible (Kraemer, 2001). They are able to save a significant amount in manufacturing cost (Brynjolfsson and Smith, 2000), these valuable resources can thus be allocated 89
elsewhere within the business and be utilized more effectively. Overall, e-commerce enhances the flow of information, therefore enables greater access to knowledge and information for businesses and cosumers (ICC, 2010).
RQ2: What are the key factors that influence the adoption process of e-commerce by businesses and consumers?
There are various factors that influence the adoption process of e-commerce by businesses and consumers. E-commerce and the Internet present an array of benefits. However, most would perceive e-commerce to be complex and be fearful of the changes that it would convey. On the other hand, consumers that make transactions virtually are expected to save money and time; prices are 9 to 16 percent lower than conventional stores (Brynjolfsson and Smith, 2000). They have greater access and reach to larger range of products and services offered through Internets vast global networks (Chiang & Dholakia, 2003). Consumers that shop online are considered to be innovators, more educated, and belong in a higher socio-economic status and they tend to differ from typical traditional shopper (Dennis, Merrilees, Jayawardhena, & Wright, 2009).
As for businesses, e-commerce is no longer an alternative that firms may possibly explore. It is an option that has become a necessity in order to remain afloat with the competition. E-commerce and other technological advancements has driven the markets and business orientation to become more homogenous, the borders between nations are fading
90
(Czinkota & Ronkainen, 2004). Firms are able to conduct business all around the world and acquire growth and productivity gains through international economies (Kraemer, 2001). This being said, communication process becomes predominantly important aspect when conducing cross-border trades. Having new technologies that enables fluid exchange of information and improves communication methods all play an important role in shaping the firms competitive advantage (Porter, 2008).
RQ3: What are the barriers that inhibit the adoption process of e-commerce by businesses and consumers?
The major barriers of e-commerce adoption process are lack of perceived benefit, lack of trust, inadequate infrastructure, lack of technical know-how and high cost of implementation. Studies show that larger firms are more likely to perceive benefits from the Internet than smaller firms. Consumer may choose brick and mortar stores, rather than online stores as they think they do not offer any added benefits (Uhrbach, 2006). Trust plays an important role in transactions between buyers and sellers, since there is a physical separation between the parties. On a whole, this creates an environment of percieved insecurity (Karake-Shalhoub, 2002). Bangladesh being an underdeveloped country, the ecommerce adoption process has been comparatively slow due to inadequate telecommunication infrastructure, low PC penetration and lack of opportunities for Internet service providers (Karake-Shalhoub & Qasimi, 2006).Furthermore, the countrys population has low purchasing power and government policies do not support online
91
transactions. Thus, businesses that implement e-commerce are mostly to automate internal processes and conduct sell-side e-commerce beyond the borders of Bangladesh. In addition to improper infrastructure, lack of knowledge and technical know-how regarding e-commerce and its applications has been contributed towards diminishing the rate of adoption process. The majority population of Bangladesh lacks education, therefore acquiring expertise to use the Internet makes things much harder. This affects firms negatively, the labor market lacks individuals with proper knowledge regarding ecommerce. Start up costs for implementing e-commerce projects can be very high. Which includes connection costs, hardware and software setup and needed maintenance (Ratnasingam, 2003). Studies show that cost and investment required for e-commerce application are a major barrier for small and medium sized enterprises (SMEs) and large institutions (Lamersdorf, Tschammer, & Amarger, 2004). Payments via credit or debit card are an essential aspect to complete an online transaction procedure (Obaidat & Boudriga, 2007). It involves sharing personal and contact information; security is recognized as a key barrier to e-commerce adoption by firms in all sectors (Kraemer, Dedrick, Melville, & Zhu, 2001).
92
5.2 Justification of Research Objectives
5.2.1 Benefits and pitfalls of EC
Objective 1: To highlight the benefits and pitfalls of incorporating e-commerce to business models of companies in Bangladesh that are affiliated with RMG. It is important to understand both the advantages and disadvantages of e-commerce, in order to truly understand if e-commerce is favorable. According to the data acquired from the survey, it can be seen that the trust and security to be major concerns. Furthermore, a large portion of the surveyed stated that security, confidentiality and privacy were of importance when conducting business online. ProgWears stated that they do use e-commerce in some of the aspects of the supply chain. Given that the company is based in Bangladesh, they were somewhat fearful of the implications it would have if all processes were to be automated, it would lack compatibility with needs of other trading partners. However, there are many positive aspects of e-commerce, progWears used e-commerce to target customers located overseas and to increase customer base, they constantly put online advertisements. Subsequently, consumers of the RMG sector Bangladesh that were surveyed also stated that they found suppliers via online medium. This show the needs of both ends are linked via the Internet. ProgWears management stated we are what we are today, thanks to e-commerce, so yes it has significantly added value to our supply chain. This shows which factors need to be overcome to extort the benefits of e-commerce. 93
5.2.2 factors that enable e-commerce adoption process
Objective 2: e-commerce brings organization wide changes, implementation of ecommerce may be a challenge of its own. To reduce these challenges, factors that facilitate e-commerce adoption process are going to be explored.
E-commerce contributes toward making organizational wide changes, its users must be well aware of its offerings. The major enablers of e-commerce are the benefits it presents to businesses and consumers. Amongst the participants surveyed, 80 percent of businesses surveyed would agree that the Internet has changed their way of conducting business. 60 percent used the Internet for business purposes, majority used it to find business information (40 percent) and communicate (30 percent) with other suppliers. In addition, only 3 percent of the participants said that they found suppliers in Bangladesh through traditional methods (offline). When it comes to customer relationship management, 70
percent of the interviewed stated that the Internet is very important when it comes to managing the customer relationship. ProgWears used the Internet to locate customers overseas, it was the only method used by the company. They used communication applications via the Internet to enhance communication, and meet unique customer needs and wants, and in terms generate customers that are much more loyal. In addition to what was said by the management of progWears, 70 percent of the survey participants also mentioned that the Internet enhanced their communication process. 60 percent strongly agreed that e-commerce was a source in gaining key competitive advantages.
94
5.2.3 Internet adoption in Bangladesh
Objective 3: To understand if the population in Bangladesh is well acquainted with ecommerce and if its adaption will positively affect the nations economy. If results are positive, this may encourage the government of Bangladesh to offer assistance and guidance to facilitate e-commerce adoption.
The population of Bangladesh is not well acquainted with e-commerce at all. Its adoption will definitely have a positive impact on the nations economy. The major of e-commerce adoption in Bangladesh is it lacks infrastructure and there is a major lack of skills, knowledge and expertise related to e-commerce. The majority of the participants answered unfavorably towards the technical know-how of suppliers in Bangladesh in relation to ecommerce. ProgWears had a similar view on these related aspects. They stated that the major challenge was finding employees with the right knowledge and experience to tackle with day-to-day e-commerce activities. Given that e-commerce offers vast array of benefits to both suppliers in Bangladesh and its customers, it has enabled new opportunities, thus revenues are going to increase substantially. This will encourage the government of Bangladesh to improve the countrys telecommunication and Internet infrastructure, so that companies are able to expand their e-commerce initiatives in the near future.
95
5.2.4 E-commerce and competitive advantage
Objective 4: To examine whether e-commerce can serve as a source of competitive advantage. 60 percent of the participants strongly agreed that e-commerce was a source in gaining key competitive advantages. In todays economy, efficient flow of information and knowledge are important factors, 70 percent strongly agreed that Internet provided them a method to enhance their communication process. Furthermore, acquiring goods at a lower price and offering a lower selling price to consumers can significantly hurt competitors selling abilities and in turn provide an advantage. 60 percent of the participants outsourced their manufacturing to Bangladesh for the price factor. Another 20 percent were able to acquire goods that would otherwise be unavailable. Offering goods that competitors are not able to may enable firms to capture competitors market share and increase customer base, thus gaining key competitive advantages.
96
5.3 Recommendation
Overcoming deterrents and impediments to e-commerce is a crucial process to creating an effective e-commerce action plan for the RMG sector of Bangladesh. However, within developing countries, it can be a major challenge. In this recommendation, a to-do list is created for anyone in favor of overcoming this predicament. By conducting this research it was deemed (1) cost of implementation (2) e-commerce infrastructure (3)
telecommunication infrastructure (4) technical knowledge to be the major obstacles to ecommerce adoption process in Bangladesh. 5.3.1 Attempt to resolve issues Figure 5.1: Proposed Solutions
Promotion and awareness
Financial services and monetary issues
Human resource and skills development
Proposed Solutions
Regional strategy
Liberalization of infrastructure development
97
Promotion and awareness: Encourage and facilitate information related to e-commerce to business associations, such as Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI).
Human resource and skills development: The private sector and government must work hand in hand to develop and implement human resource policies that support workers and students, policies must be aware to the Bangladesh Society For Human Resource Management (BSRM). This will prepare them to meet the challenges of the emerging digital economy.
Liberalization of infrastructure development: In order to over the infrastructure barrier, private companies must invest towards developing the local and rural telecommunication infrastructure. In turn, it will create employment and knowledge and expertise to be shared more effectively. This should be an incentive for the government and seek out long-term gains.
Regional strategy: Usually when implementing e-commerce efforts, Bangladesh is seen as a whole. However, if the plan were fragmented region wise, it would radically facilitate the process of spreading awareness nationwide.
Financial services and monetary issues: A general policy outlined by the Federal Bank
98
must be in practice. It will enable financial services to those seeking to invest into ecommerce initiatives. The government may also offer Internet subscription at a subsidized rate. These factors will overcome the cost factor.
Content: The use of Bengali content, and maybe iconographic content will encourage Internet usage by the general population of Bangladesh.
5.4 Limitations of the Study
There are a few limitations related to this study. Firstly, a smaller and more workable sample size was chosen using non-probability sampling, which uses biased form of selection. Furthermore, the whole population was not interviewed; it was somewhat perceived that honesty of respondents was questionable. These factors combined may reduce the amount of quantitative data acquired and thus reducing the accuracy of the results. This research is based on progWears, and does not consider other players within the RMG sector of Bangladesh. Therefore, results contained in this study may conflict with other related studies and based on another company.
99
5.5 Implications for Practitioners

This research has shown the benefits and barriers to e-commerce (EC) adoption process. The RMG sector of Bangladesh is a major concern for its economic development. In order to leverage it, EC deployment within the RMG sector has proved to be predominantly important, especially when reaching out to customers beyond the borders of Bangladesh. The government and managers alike should reconsider their EC initiatives for sustainable growth of the countrys companies and the RMG industry, and thus contributing positively towards the gross domestic product of Bangladesh.
5.6 Implication for Further Research

While conducing this research paper, various other topics came across that would further facilitate the current e-commerce adoption process, in order to positively affect those that are in its pathway and leave out some of its negatives. 1) Potential effects of e-commerce on SME's (small/medium sizes enterprise), small cities and rural areas of Bangladesh. 2) What systems and arrangements are needed to accommodate SMEs of Bangladesh for efficient and effective e-commerce implementation? 3) How does cultural influences affect the diffusion of e-commerce? 4) How to effectively management e-commerce developments in Bangladesh? 5) Relationship between e-commerce initiatives and business performance.
100
List of References
Books
Adams, K., & Brace, I. (2006). An introduction to market & social research: planning & using research tools and techniques . London, UK: Kogan Page. Ajzen, I., & Fishbein, M. (1975). Understanding attitudes and predicting social behavior. NJ, USA: Prentice-Hall. Ajzen, I., & Fishbein, M. (1980). Understanding attitudes and predicting social behaviour. NJ, USA: Prentice-Hall. Alan R. Simon, S. L. (2001). Data warehousing and business intelligence for e-commerce. CA, USA: Academic Press. Al-Qirim, N. A. (2004). Electronic commerce in small to medium-sized enterprises: frameworks, issues. PA, USA: Idea Group. Armistead, L. (2004). Information operations: warfare and the hard reality of soft power. VA, USA: Library of Congress. Armstrong, G., & Kotler. (2005). Marketing An Introduction. New Delhi, India: Pearson Education. Baumeister, R., & Leary, M. (1995). The need to belong: Desire for interpesonal attachments as a fundamental human motivation. Psychological Bulletin.
101
Bergh, D. D., & Ketchen, D. J. (2009). Research Methodology in Strategy and Management, Volume 5. WA, UK: Emeral Group Publishing.
Best, J. D. (1997). The Digital Organization - Success with business techonology. NY, USA: John Wiley and Sons Inc.
Botten, N. (2008). Enterprise Strategy. OX, UK: CIMA. Brace, I. (2008). Questionnaire Design: How to Plan, Structure and Write Survey Material for Effective Market Research (2nd Edition ed.). UK: Kogan Page Limited.
Brousseau, ., & Curien, N. (2007). Internet and digital economics. Cambridge. Bryman, A., & Bell, E. (2007). Business research methods (2nd Edition ed.). OX, USA: Oxford.
Chaffey, D. (2004). E-Business and E-Commerce Management: Strategy, Implementation and Practice (2nd Edition ed.). FT Prentice Hall.
Champy, J. (1996). Reengineering management: the mandate for new leadership. HarperBusiness.
Cohen, L., Manion, L., & Morrison, K. R. (2007). Research methods in education (6th Edition ed.). NY, USA: Routhledge.
Collins, H., Gordon, C., & Terra, J. C. (2006). Winning at collaboration commerce: the next competitive advantage . OX, UK: Butterworth Heinemann.
Cullen, R. (2006). Health information on the Internet: a study of providers, quality, and users. CT, USA: Greenwood Publishing. 102
Czinkota, M., & Ronkainen, I. (2004). International Marketing (7th Edition ed.). Thompson.
Darling, R. B. (2000). The partnership model in human services: sociological foundations and practices . NY, USA: Plenum Publishers.
Denzin, N. K., & Lincoln, Y. S. (1994). Introduction: Entering the field of qualitative research (Vol. Handbook of qualitative research). CA, USA: Sage.
Dlabay, L. R., Burrow, J. L., & Kleindl, B. (2009). Intro to Business . OH, USA: South Western Cengage Learning.
Duval, Y. (2005). Primary Data Collection Methods: Survey Design. RTNeTCapacity Building Workshop on Trade Research.
Etemad, H. (2004). International entrepreneurship in small and medium size enterprises. MA, USA: Edwared Elgar Publishing.
Feiler, J. (2000). Managing the web based enterprise. San Diego, CA: Acedemic Press. Fox, J. (2001). Building a profitable online accounting practice. Canada: e@ccounting. Fox, S. C. (2009). E-riches 2.0: next-generation marketing strategies for making millions online. NY, USA: AMACOM.
Gall, M. D., Borg, W. R., & Gall, J. P. (2003). Educational research: An introduction (7th edition ed.). NY, USA.
Gangopadhyay, A. (2002). Managing business with electronic commerce: issues and trends. PA, USA. 103
Garrity, E. J., & Sanders, G. L. (1998). Information Systems Success Measurement. PA, USA: Idea Group Publishing.
Gillham, B. (2000). Case study research methods. London, UK: British Library Cataloguing.
Gordon, R. J. (2004). Productivity growth, inflation, and unemployment. Cambridge University Press.
Gravetter, F. J., & Forzano, L.-A. B. (2009). Research Methods for the Behavioral Sciences (3rd Edition ed.). Wadsworth.
Groves, R. M., Fowler, F. J., Couper, M. P., Lepkowski, J. M., Singer, E., & Tourangeau, R. (2009). Survey Methodology. NJ, USA: John Wiley & Sons.
Hammer, M., & Champy, J. (2003). Reengineering the corporation: a manifesto for business revolution. HarperBusiness Essentials.
Hoonaard, W. C. (2002). Walking the tightrope: ethical issues for qualitative researchers. ON, Canada: University of Toronto Press.
J. Christopher Westland, T. H. (1999). Global electronic commerce: theory and case studies (2nd edition ed.). Massachusetts, USA: Massachusetts Institute of Techonology.
Jackson, P., Harris, L., & Eckersley, P. M. (2003). E-business fundamentals. London, UK: Routhledge.
Jacobson, I., Griss, M., & Jonsson, P. (2009). Software Reuse (3rd edition ed.). India: ACM Book Press.
104
James, C. F. (2006). Business process management systems: strategy and implementation. FL, USA: Auerbach Publications.
Jansson-Boyd, C. V. (2010). Consumer Psychology. Berkshire, England: Open University Press.
Jennings, M. (2006). Business: its legal, ethical, and global environment. London, UK: Thompson Learning.
Kamel, S. (2006). Electronic business in developing countries: opportunities and challenges . PA, USA: IDEA Group.
Kamlesh K. Bajaj, D. N. (2009). E-Commerce - The Cutting Edge of Business (2nd edition ed.). New Delhi, India: Tata McGraw-Hill Publishing.
Kanter, J. (1990). Management Informationa System. New Delhi, India: Prentice Hall of India.
Karake-Shalhoub, Z. (2002). Trust and loyalty in electronic commerce: an agency theory perspective. USA: Greenwood publishing.
Karake-Shalhoub, Z., & Qasimi, L. A. (2006). The diffusion of e-commerce in developing economies: a resource-based approach . UK: Edward Elgar Publishing Limited.
Khosrowpour, M. (2001). Pitfalls and triumphs of information technology management. PA, USA: IDEA Group.
Kogut, B. (2004). The Global Internet Economy. Masssacusetts, USA: First MIT Press.
105
Kotler, P. (2003). Marketing Management (11th Edition ed.). Upper Sadldle River, New Jersey, USA: Pearson Education, inc. .
Kraemer, K. L., Dedrick, J., Melville, N. P., & Zhu, K. (2002). Global e-commerce: impacts of national environment and policy . MA, USA: Cambridge University Press.
Kraemer, K. L., Dedrick, J., Melville, N. P., & Zhu, K. (2001). Globalization of ECommerce. University of California, Irvine. IBM Global Services.
Lamersdorf, W., Tschammer, V., & Amarger, S. (2004). Building the E-service society: Ecommerce, E-business, and E-government. MA, USA: Kluwer Academic Publishers.
Laudon, K. C., & Traver, C. G. (2008). E-Commerce - business. technology. society (4th edition ed.). Delhi, India: Dorling Kindersley.
Litosseliti, L. (2005). Using focus groups in research . UK: British Library Cataloguing. Longenecker, J. G., Moore, C. W., Petty, J. W., & Palich, L. E. (2006). Small business management: an entrepreneurial emphasis (13th edition ed.). USA: South-Western.
Longenecker, J. G., Moore, C. W., Petty, J. W., & Palich, L. E. (2006). Small business management: an entrepreneurial emphasis. OH, USA: Thompson South Western.
MacGregor, R. C., & Vrazalic, L. (2004). E-Commerce in Regional Small to Medium Enterprises. London, UK: IGI.
MacGregor, R. C., & Vrazalic, L. (2007). E-Commerce in Regional Small to Medium Enterprises . PA, USA: IGI Publishing.
106
Marc J. Schniederjans, Q. C. (2002). e-Commerce operations management . NJ, USA: World Scientific Publishing.
McNabb, D. E. (2004). Research methods for political science: quantitative and qualitative methods. NY, USA: ME Sharpe.
Merriam, S. B. (2009). Qualitative research: a guide to design and implementation . CA, USA: Jossey Bass.
Mills, J. H., Dye, K., & Mills, A. J. (2009). Understanding Organizational Change. OX, USA: Routhledge.
Morley, D., & Parke, C. S. (2009). Understanding Computers: Today and Tomorrow, Comprehensive. MA, USA: Cengage Learning.
Obaidat, M. S., & Boudriga, N. (2007). Security of e-systems and computer networks. UK: Cambridge University Press.
Pastorino, E. E., & Portillo, S. M. (2010). What Is Psychology? Essentials. CA, USA: Wadsworth.
Patnayakuni, R. (n.d). Predicting the Success of Business Process Redesign Projects: The Australian Experience. Temple University, Computer and information science .
Pine, J. B., & Davis, S. (1999). Mass customization: the new frontier in business competition. USA: Harvard Business School Press.
Porter, M. E. (2008). On competition (Updated and Expanded Edition ed.). USA: Harvard Business School Publishing.
107
Radhakrishnan, R., & balasubramanian, S. (2008). Business Process Reengineering: Text And Cases. India: Prentice Hall.
Ratcliff, D. E. (1994). Analytic Induction as a Qualitative Research Method of Analysis . The University of Georgia.
Ratnasingam, P. (2003). Inter-organizational trust for business-to-business e-commerce. London, UK: IRM Press.
Reynolds, B. J. (2004). The complete e-commerce book: design, build & maintain a successful Website . CA, USA: CMP.
Richards, D. J., Allenby, B. R., & Compton, W. D. (2001). Information systems and the environment . DC, USA: National Academy Press.
Richey, R., & Klein, J. D. (2007). Design and development research: methods, strategies, and issues. NJ, USA: Lawrence Erlbaum .
Rob, P., & Coronel, C. (2009). Database systems: design, implementation, and management. MA, USA: Thompson.
Rule, C. (2002). Online dispute resolution for business: B2B, e-commerce, consumer, employment, insurance, and other commercial conflicts. CA, USA: John Wiley & Sons.
Samtani, G., Healey, M., & Samtani, S. (2002). B2B integration: a practical guide to collaborative e-commerce . London, UK: Imperial College Press.
Seidman, I. (2006). Interviewing as qualitative research: a guide for researchers in education . NY, USA: Teachers college.
108
Shalhoub, Z. K., & Qasimi, L. A. (2006). The diffusion of e-commerce in developing economies: a resource-based approach. MA, USA: Edward Elgar Publishing .
Singleton, R. A., & Straits, B. (2004). Approaches to Social Research (4th Edition ed.). USA: Oxford University Press.
Smith, P., Russell, P., & Chaffey, D. (2005). eMarketing eXcellence: the heart of ebusiness. Burlington, MA: Elsevier Butterworth-Heinemann.
Srinagesh, K. (2006). The principles of experimental research . OX, UK: British Library Cataloguing.
Stake, R. E. (2010). Qualitative Research: Studying How Things Work. NY, USA: Giulford Press.
Stanford-Smith, B., & Chiozza, E. (2001). E-work and E-commerce: novel solutions and practices for a global networked economy. Germany: IOS Press.
Sun, Z., & Finnie, G. R. (2004). Intelligent techniques in E-Commerce: a case based reasoning perspective. Gold Coast, Australia: Spinger-Verlag.
Terplan, K. (2000). Intranet Performance Management. USA: CRC Press. Thomas, D. R. (2003). A general inductive approach for qualitative data analysis. University of Auckland, School of Population Health.
Turban, E., King, D., Viehland, D., & Lee, J. (2009). Electronic Commerce 2004: A Managerial Perspective, 4/e (New Edition). New Delhi, India: Dorling Kidersley.
109
Ulric J. Gelinas, R. B. (2008). Accounting Information Systems (8th Edition ed.). OH , USA: South Western Cengage Learning.
Whiteley, D. (2001). E-Commerce: Strategy, Technologies And Applications . India: Tata McGraw Hil.
Xu, J., & Quaddus, M. (2009). E-Business in the 21st Century: Realities, Challenges and Outlook. World Scientific.
Journals and Articles
Adams, N. D., & Todd, P. (1992). Percieved usefulness, ease of use, and usage of information technology. A replication. MIS Quaterly , 16 (2), 227-247.
Ahearne, M., Bhattacharya, C., & Gruen, T. (In press). Beyond the brand: Antecedents and consequences of customer-company identification. Journal of Applied Psychology.
Aladwani, A. M. (2003). Key Internet characteristics and e-commerce issues in Arab countries. Information Technology & People , 16 (1).
Baourakis, G., Kourgiantakis, M., & Migdalas, A. (2002). The Impact of e-commerc on agro food maketing. British Food Journal , 104 (8).
110
Bartlett, J. E., & Higgins, J. W. (2001). Organizational Research: Determining Appropriate Sample Size in Survey Research. Information Technology, Learning, and Performance Journal , 19 (1).
Bergami, M., & Bagozzi, R. (2000). Self-categorization, affective commitment and group self-esteem as distinct aspects of social identity in the organization. British Journal of Social Psychology.
BERGFELD, M.-M. H. (2009). GLOBAL INNOVATION LEADERSHIP: THE STRATEGIC DEVELOPMENT OF WORLDWIDE INNOVATION COMPETENCE. Germany: Cardiac communications.
Bernoff, J., & Li, C. (2008). Harnessing the power of the oh-so-social web. MIT Sloan Management Review , 49 (3).
Bhattacharya, C., & Sen, S. (2003). Consumer-company identification: A framework for understanding consumers' relationships with companies. Journal of Marketing , 67.
Brynjolfsson, E., & Smith, M. Frictionless commerce? A comparison of internet and conventional retailers. Management Science , 46 (4).
Burney, S. M. (2008). Research Approach. University of Karachi, Computer Science. Chiang, K., & Dholakia, R. (2003). Factors driving consumer intention to shop online: an empirical investigation. 13 (1/2).
Damen, G. A., Dubel, J., & Strikwerda, H. (2009). Crossing the Threshold. Nolan, Norton & Co.
111
Davis, F. (1986). A technology acceptance model for empirically testing new end-user information systems: Theory and results. Massachusetts Institute of Technology, Sloan School of Management.
Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quarterly , 13 (3).
Dennis, C. (2000). Networking for Marketing Advantage. Management Decision , 38 (4). Dennis, C., Merrilees, B., Jayawardhena, C., & Wright, L. T. (2009). E-consumer behaviour. European Journal of Marketing , 43 (9).
Dutton, J., Dukerich, J., & Harquail, C. (1994). Organizational Imagesand member identification. Administrative Science Quarterly , 39.
Esrock, S. L. (n.d). Online Shopping: To Buy or Not to Buy? AC Journal , 2 (3). FBI. (2001). Internet Fraud Watch of the National Consumer League (NCL), 2001 NCLs On-line shopping survey, carried out in USA with a sample of 1,003 adults. FBI Internet Fraud Complaint Center.
Fielding, J. (1996). Getting Out in Front with EDI. Inform , 10 (9). Garrity, E. J., O'Donnell, J., KIm, Y. J., & Sanders, G. L. Measuring consumer shopping oriented web site success: A motivation-based model. Richard J. Wehle School of Business, Buffalo.
Gefen, D. (2002). Customer Loyalty in e-commerce. Journal of the Association for Information Sytems , 3.
112
Henderson, N. R. (2009). Managing Moderator Stress: Take a Deep Breath. You Can Do This! . Marketing Research Journal , 21 (1).
Hermeking, M. (2005). Culture and Internet Consumption: Contributions from CrossCultural Marketing and Advertising Research. Journal of Computer-Mediated Communication , 11 (10).
InfoWorld. (2000). InfoWorld - Defining Techonology for Business. 22 (29). Inmon, W. H. (2000). eBusiness Infrastructure. Billinmon. Kalakota, R., & Whinston, A. B. (1996). Electronic Commerce - A Manager's Guide. Keil, B. M., & Konsynski, P. B. (1995). Usefulness and ease of use: Field study evidence regarding task considerations, Decision support systems. 13 (1), 75-91.
Lawrence, K. (1997). Factors Inhibiting the Utilisation of Electronic Commerce Facilities in Tasmanian Small- to Medium- Sized Enterprises. Proceedings of the 8th Australasian Conference on Information Systems. Adelaide.
Lee, L., Pi, S., Kwok, R., & Huynh, M. (2003). The contribution of commitment value in Internet commerce: An empirical investigation. Journal of Association for Information Systems , 4.
Lin, C., Varadharanjan, V., & Wang, Y. (2005). Maximizing Utility of Mobile Agent Based E-commerce Applicaitons with Trust Enhance Security. Departmnet of Computing.
113
McKnight, D., Chodhury, V., & Kacmar, C. (2002). The Impact of initial consumer trust on intentions to transact with a web site: A trust building model (Vol. 11). Journal of Strategic Information Systems.
Motwani, J., Kumar, A., Jiang, J., & Youssef, M. (1998). Business process reengineering: A theoretical framework and an integrated model. International Journal of Operations & Production Management , 18 (9/10).
NetRatings. (2003). How the Internet has Changed Our Lives. NetRatings, Inc. OECD. (2004). OECD Information Technology Outlook. Organisation for Economic Cooperation and Development.
Oram, A., & Viega, J. (2009). Beautiful Security. USA: O'Reilly Media. Park, N., Lee, K. M., & Cheong, P. H. (2007). University Instructors' Acceptance of Electronic Courseware: An Application of the Technology Acceptance Model. Journal of computed-mediated communication.
Tanewski, G. (2003). Achieving Strategic Benefits from B2B eCommerce: A Multiple Case Study of the Australian Automobile Industry. Monash University, Department Accounting & Finance.
Tatnall, A. (2007). Encyclopedia of portal technologies and applications: M - Z, Volume 2 . USA: IGI Global.
114
Venkatesh, V. (2000). Determinants of percieved ease of use: Integrating control, intrinsic motivation, and emotion into the the technology acceptance model. Information systems research , 11 (4).
Venkatesh, V., & Davis, F. D. (1996). A Model of the Antecedents of Perceived Ease of Use: Development and Test. Decision Sciences , 27 (3).
Wells, M. G. (2000). Business process re-engineering implementations using Internet technology . Business Process Management Journal , 6 (2).
Zeng, Y. E., Wen, J. H., & Yen, D. C. (2003). Customer relationship management (CRM) in business-to-business (B2B) e-commerce. School of Business, Miami University. Miami: Emerald Insight.
Websites
Azad, A. K., & Islam, N. (2010). Overview of Internet Access in Bangladesh: Impact, Barriers, and Solutions . Retrieved August 21, 2010, from Internet Society: http://www.isoc.org/inet97/proceedings/E3/E3_1.HTM BBC. (2001, November 19). The Internet's Effect on Society. Retrieved August 25, 2010, from BBC: http://www.bbc.co.uk/dna/h2g2/A650684 Beynon-Davies, P. (2009). Forms of e-commerce - Level 3. Retrieved from University of Wales Swansea: http://www.designersplus.co.uk/unit3/forms_of_e_commerce/level3.html BrandRepublic. (2010). Advertising, media, marketing and PR news and jobs. Retrieved August 2010, 2010, from Brand Republic: http://www.brandrepublic.com/
115
BYU. (n.d). Research methods: Planning: PARAMETERS IN DEPTH. Retrieved September 01, 2010, from BYU:
http://linguistics.byu.edu/faculty/henrichsenl/researchmethods/RM_2_02.html DoingBusiness. (2010). Doing Business 2010 data for the selected economy - Bangladesh. Retrieved September 01, 2010, from Doing Business:
http://www.doingbusiness.org/exploreeconomies/?economyid=17 EnterpriseSurveys. (2007). Explore Economies. Retrieved August 31, 2010, from The world bank Group:
http://www.enterprisesurveys.org/ExploreEconomies/?economyid=17&year=2007 FTC. (2009). Consumer information. Retrieved July 8, 2010, from FTC Bureau of Consumer Protection: http://www.ftc.gov/bcp/consumer.shtm Gibbs, A. (1997). Focus groups. Social Research Update Issue Nineteen. Retrieved September 2, 2010, from University of Surrey:
http://www.soc.surrey.ac.uk/sru/SRU19.html. Hammer, M. (1996). REENGINEERING RECYCLED - How the Process-Centered Organization Is Changing Our Work and Our Lives. Retrieved August 28, 2010, from http://www.businessweek.com/1996/34/b348940.htm Helfat, C. E. (2000, July). PRODUCT SEQUENCING, KNOWLEDGE, AND ECOMMERCE. Retrieved from
http://mba.tuck.dartmouth.edu/digital/Research/AcademicPublications/ProductSequencing .pdf
116
Herek, G. M. (2009). A Brief Introduction to Sampling. Retrieved September 03, 2010, from University of California:
http://psychology.ucdavis.edu/rainbow/html/fact_sample.html Hofstede, G. (2009). India Geert Hofstede Cultural Dimensions Explained. Retrieved August 22, 2010, from ITIM: http://www.geert-hofstede.com/hofstede_india.shtml IBM. (2009). IBM Patterns for e-business Ressources. Retrieved June 25, 2010, from IBM official company website: https://www.ibm.com/developerworks/patterns/library/#visio ICC. (2010). ICC brief on globalization. Retrieved August 25, 2010 , from The world business organization: http://www.iccwbo.org/id1283/index.html IDM. (2010). Marketing Training Course and Qualifications. Retrieved August 22, 2010, from IDM: http://www.theidm.com/ IntelliQuest. (2006). IntelliQuest Business Online Behavior Study . Retrieved August 30, 2010, from KMR Group: http://www.kmr-group.com/main.asp?p=113&finfo=109 InternetWorldStats. (2010). INTERNET USAGE STATISTICS The Internet Big Picture. Retrieved August 31, 2010, from World Internet Usage Statistics:
http://www.internetworldstats.com/stats.htm Key, J. P. (1997). Research Design in Occupational Education. Retrieved August 31, 2010, from Oklahoma State University:
http://www.okstate.edu/ag/agedcm4h/academic/aged5980a/5980/newpage2.htm
117
MED. (2009). Continuing Importance of E-Commerce . Retrieved August 21, 2010, from Ministry of Economic Development:
http://www.med.govt.nz/templates/MultipageDocumentPage____16344.aspx NMAUk. (2010). New Media, Marketing, Advertising & Interactive News & Jobs. Retrieved August 22, 2010, from http://www.nma.co.uk/ Norman, J. (2010). eCommerce Timeline: From cave Paintings to the internet. Retrieved July 2, 2010, from HIstory of science, medicin and technology:
http://www.historyofscience.com/G2I/timeline/index.php?category=eCommerce Reza, S. I. (2009, June 06). WiMAX to reduce digital gap between rural and urban Bangladesh. Retrieved August 31, 2010, from Bangladesh Economic News: http://bangladesheconomy.wordpress.com/category/telecom-sectorinternetwimax/page/5/ TVU. (n.d). Secondary Data Collection . Retrieved from The official Thames Valley University website: http://brent.tvu.ac.uk/dissguide/hm1u3/hm1u3text2.htm UCSF. (2010). Bangladesh-Comprehensive Indicator Report . Retrieved September 1, 2010, from University of California: http://hivinsite.ucsf.edu/global?page=cr08-bg00&post=19&cid=BG Uhrbach, M. (2006). How does firm size affect the perceived benefits of Internet business? Retrieved August 30, 2010, from Statistics Canada: http://www.statcan.gc.ca/pub/88-003x/2007002/10328-eng.htm
118
UOGuelph. (n.d). Descriptive Research. Retrieved September 2, 2010, from University of Guelph: http://www.uoguelph.ca/htm/MJResearch/ResearchProcess/DescriptiveResearch.htm
119
BIBLIOGRAPHY
Books
Adams, K., & Brace, I. (2006). An introduction to market & social research: planning & using research tools and techniques . London, UK: Kogan Page. Ajzen, I., & Fishbein, M. (1975). Understanding attitudes and predicting social behavior. NJ, USA: Prentice-Hall. Ajzen, I., & Fishbein, M. (1980). Understanding attitudes and predicting social behaviour. NJ, USA: Prentice-Hall. Alan R. Simon, S. L. (2001). Data warehousing and business intelligence for e-commerce. CA, USA: Academic Press. Al-Qirim, N. A. (2004). Electronic commerce in small to medium-sized enterprises: frameworks, issues. PA, USA: Idea Group. Armistead, L. (2004). Information operations: warfare and the hard reality of soft power. VA, USA: Library of Congress. Armstrong, G., & Kotler. (2005). Marketing An Introduction. New Delhi, India: Pearson Education.
120
Baumeister, R., & Leary, M. (1995). The need to belong: Desire for interpesonal attachments as a fundamental human motivation. Psychological Bulletin.
Bergh, D. D., & Ketchen, D. J. (2009). Research Methodology in Strategy and Management, Volume 5. WA, UK: Emeral Group Publishing.
Best, J. D. (1997). The Digital Organization - Success with business techonology. NY, USA: John Wiley and Sons Inc.
Botten, N. (2008). Enterprise Strategy. OX, UK: CIMA. Brace, I. (2008). Questionnaire Design: How to Plan, Structure and Write Survey Material for Effective Market Research (2nd Edition ed.). UK: Kogan Page Limited.
Brousseau, ., & Curien, N. (2007). Internet and digital economics. Cambridge. Bryman, A., & Bell, E. (2007). Business research methods (2nd Edition ed.). OX, USA: Oxford.
Chaffey, D. (2004). E-Business and E-Commerce Management: Strategy, Implementation and Practice (2nd Edition ed.). FT Prentice Hall.
Champy, J. (1996). Reengineering management: the mandate for new leadership. HarperBusiness.
Cohen, L., Manion, L., & Morrison, K. R. (2007). Research methods in education (6th Edition ed.). NY, USA: Routhledge.
Collins, H., Gordon, C., & Terra, J. C. (2006). Winning at collaboration commerce: the next competitive advantage . OX, UK: Butterworth Heinemann. 121
Cullen, R. (2006). Health information on the Internet: a study of providers, quality, and users. CT, USA: Greenwood Publishing.
Czinkota, M., & Ronkainen, I. (2004). International Marketing (7th Edition ed.). Thompson.
Darling, R. B. (2000). The partnership model in human services: sociological foundations and practices . NY, USA: Plenum Publishers.
Denzin, N. K., & Lincoln, Y. S. (1994). Introduction: Entering the field of qualitative research (Vol. Handbook of qualitative research). CA, USA: Sage.
Dlabay, L. R., Burrow, J. L., & Kleindl, B. (2009). Intro to Business . OH, USA: South Western Cengage Learning.
Duval, Y. (2005). Primary Data Collection Methods: Survey Design. RTNeTCapacity Building Workshop on Trade Research.
Etemad, H. (2004). International entrepreneurship in small and medium size enterprises. MA, USA: Edwared Elgar Publishing.
Feiler, J. (2000). Managing the web based enterprise. San Diego, CA: Acedemic Press. Fox, J. (2001). Building a profitable online accounting practice. Canada: e@ccounting. Fox, S. C. (2009). E-riches 2.0: next-generation marketing strategies for making millions online. NY, USA: AMACOM.
Gall, M. D., Borg, W. R., & Gall, J. P. (2003). Educational research: An introduction (7th edition ed.). NY, USA. 122
Gangopadhyay, A. (2002). Managing business with electronic commerce: issues and trends. PA, USA.
Garrity, E. J., & Sanders, G. L. (1998). Information Systems Success Measurement. PA, USA: Idea Group Publishing.
Gillham, B. (2000). Case study research methods. London, UK: British Library Cataloguing.
Gordon, R. J. (2004). Productivity growth, inflation, and unemployment. Cambridge University Press.
Gravetter, F. J., & Forzano, L.-A. B. (2009). Research Methods for the Behavioral Sciences (3rd Edition ed.). Wadsworth.
Groves, R. M., Fowler, F. J., Couper, M. P., Lepkowski, J. M., Singer, E., & Tourangeau, R. (2009). Survey Methodology. NJ, USA: John Wiley & Sons.
Hammer, M., & Champy, J. (2003). Reengineering the corporation: a manifesto for business revolution. HarperBusiness Essentials.
Hoonaard, W. C. (2002). Walking the tightrope: ethical issues for qualitative researchers. ON, Canada: University of Toronto Press.
J. Christopher Westland, T. H. (1999). Global electronic commerce: theory and case studies (2nd edition ed.). Massachusetts, USA: Massachusetts Institute of Techonology.
Jackson, P., Harris, L., & Eckersley, P. M. (2003). E-business fundamentals. London, UK: Routhledge.
123
Jacobson, I., Griss, M., & Jonsson, P. (2009). Software Reuse (3rd edition ed.). India: ACM Book Press.
James, C. F. (2006). Business process management systems: strategy and implementation. FL, USA: Auerbach Publications.
Jansson-Boyd, C. V. (2010). Consumer Psychology. Berkshire, England: Open University Press.
Jennings, M. (2006). Business: its legal, ethical, and global environment. London, UK: Thompson Learning.
Kamel, S. (2006). Electronic business in developing countries: opportunities and challenges . PA, USA: IDEA Group.
Kamlesh K. Bajaj, D. N. (2009). E-Commerce - The Cutting Edge of Business (2nd edition ed.). New Delhi, India: Tata McGraw-Hill Publishing.
Kanter, J. (1990). Management Informationa System. New Delhi, India: Prentice Hall of India.
Karake-Shalhoub, Z. (2002). Trust and loyalty in electronic commerce: an agency theory perspective. USA: Greenwood publishing.
Karake-Shalhoub, Z., & Qasimi, L. A. (2006). The diffusion of e-commerce in developing economies: a resource-based approach . UK: Edward Elgar Publishing Limited.
Khosrowpour, M. (2001). Pitfalls and triumphs of information technology management. PA, USA: IDEA Group.
124
Kogut, B. (2004). The Global Internet Economy. Masssacusetts, USA: First MIT Press. Kotler, P. (2003). Marketing Management (11th Edition ed.). Upper Sadldle River, New Jersey, USA: Pearson Education, inc. .
Kraemer, K. L., Dedrick, J., Melville, N. P., & Zhu, K. (2002). Global e-commerce: impacts of national environment and policy . MA, USA: Cambridge University Press.
Kraemer, K. L., Dedrick, J., Melville, N. P., & Zhu, K. (2001). Globalization of ECommerce. University of California, Irvine. IBM Global Services.
Krajewski, Lee J & Ritzman, Larry P (2000), Operations management: strategy and analysis (5th edition). Addison-Wesley Publishing Company: India.
Lamersdorf, W., Tschammer, V., & Amarger, S. (2004). Building the E-service society: Ecommerce, E-business, and E-government. MA, USA: Kluwer Academic Publishers.
Laudon, K. C., & Traver, C. G. (2008). E-Commerce - business. technology. society (4th edition ed.). Delhi, India: Dorling Kindersley.
Litosseliti, L. (2005). Using focus groups in research . UK: British Library Cataloguing. Longenecker, J. G., Moore, C. W., Petty, J. W., & Palich, L. E. (2006). Small business management: an entrepreneurial emphasis (13th edition ed.). USA: South-Western.
Longenecker, J. G., Moore, C. W., Petty, J. W., & Palich, L. E. (2006). Small business management: an entrepreneurial emphasis. OH, USA: Thompson South Western.
MacGregor, R. C., & Vrazalic, L. (2004). E-Commerce in Regional Small to Medium Enterprises. London, UK: IGI.
125
MacGregor, R. C., & Vrazalic, L. (2007). E-Commerce in Regional Small to Medium Enterprises . PA, USA: IGI Publishing.
Marc J. Schniederjans, Q. C. (2002). e-Commerce operations management . NJ, USA: World Scientific Publishing.
McNabb, D. E. (2004). Research methods for political science: quantitative and qualitative methods. NY, USA: ME Sharpe.
Merriam, S. B. (2009). Qualitative research: a guide to design and implementation . CA, USA: Jossey Bass.
Mills, J. H., Dye, K., & Mills, A. J. (2009). Understanding Organizational Change. OX, USA: Routhledge.
Morley, D., & Parke, C. S. (2009). Understanding Computers: Today and Tomorrow, Comprehensive. MA, USA: Cengage Learning.
Obaidat, M. S., & Boudriga, N. (2007). Security of e-systems and computer networks. UK: Cambridge University Press.
Pastorino, E. E., & Portillo, S. M. (2010). What Is Psychology? Essentials. CA, USA: Wadsworth.
Patnayakuni, R. (n.d). Predicting the Success of Business Process Redesign Projects: The Australian Experience. Temple University, Computer and information science .
Pine, J. B., & Davis, S. (1999). Mass customization: the new frontier in business competition. USA: Harvard Business School Press.
126
Porter, M. E. (2008). On competition (Updated and Expanded Edition ed.). USA: Harvard Business School Publishing.
Radhakrishnan, R., & balasubramanian, S. (2008). Business Process Reengineering: Text And Cases. India: Prentice Hall.
Ratcliff, D. E. (1994). Analytic Induction as a Qualitative Research Method of Analysis . The University of Georgia.
Ratnasingam, P. (2003). Inter-organizational trust for business-to-business e-commerce. London, UK: IRM Press.
Reynolds, B. J. (2004). The complete e-commerce book: design, build & maintain a successful Website . CA, USA: CMP.
Richards, D. J., Allenby, B. R., & Compton, W. D. (2001). Information systems and the environment . DC, USA: National Academy Press.
Richey, R., & Klein, J. D. (2007). Design and development research: methods, strategies, and issues. NJ, USA: Lawrence Erlbaum .
Rob, P., & Coronel, C. (2009). Database systems: design, implementation, and management. MA, USA: Thompson.
Rule, C. (2002). Online dispute resolution for business: B2B, e-commerce, consumer, employment, insurance, and other commercial conflicts. CA, USA: John Wiley & Sons.
Samtani, G., Healey, M., & Samtani, S. (2002). B2B integration: a practical guide to collaborative e-commerce . London, UK: Imperial College Press.
127
Seidman, I. (2006). Interviewing as qualitative research: a guide for researchers in education . NY, USA: Teachers college.
Shalhoub, Z. K., & Qasimi, L. A. (2006). The diffusion of e-commerce in developing economies: a resource-based approach. MA, USA: Edward Elgar Publishing .
Singleton, R. A., & Straits, B. (2004). Approaches to Social Research (4th Edition ed.). USA: Oxford University Press.
Slack, N, Chambers, S & Johnston, R (2004), Operations management, (4th edition). Prentice Hall: Spain.
Smith, P., Russell, P., & Chaffey, D. (2005). eMarketing eXcellence: the heart of ebusiness. Burlington, MA: Elsevier Butterworth-Heinemann.
Srinagesh, K. (2006). The principles of experimental research . OX, UK: British Library Cataloguing.
Stake, R. E. (2010). Qualitative Research: Studying How Things Work. NY, USA: Giulford Press.
Stanford-Smith, B., & Chiozza, E. (2001). E-work and E-commerce: novel solutions and practices for a global networked economy. Germany: IOS Press.
Sun, Z., & Finnie, G. R. (2004). Intelligent techniques in E-Commerce: a case based reasoning perspective. Gold Coast, Australia: Spinger-Verlag.
Terplan, K. (2000). Intranet Performance Management. USA: CRC Press.
128
Thomas, D. R. (2003). A general inductive approach for qualitative data analysis. University of Auckland, School of Population Health.
Turban, E., & King, D. (2003). Introduction to E-Commerce. NJ, USA: Prentice Hall Pearson Education.
Turban, E., King, D., Viehland, D., & Lee, J. (2009). Electronic Commerce 2004: A Managerial Perspective, 4/e (New Edition). New Delhi, India: Dorling Kidersley.
Ulric J. Gelinas, R. B. (2008). Accounting Information Systems (8th Edition ed.). OH , USA: South Western Cengage Learning.
Whiteley, D. (2001). E-Commerce: Strategy, Technologies And Applications . India: Tata McGraw Hil.
Wynarczyk, P., Watson, R., Storey, D.J., Short, H. & Keasey, K. (1993) The Managerial Labour Market in Small and Medium Sized Enterprises. London, UK: Routledge
Xu, J., & Quaddus, M. (2009). E-Business in the 21st Century: Realities, Challenges and Outlook. World Scientific.
Journals and Articles

Adams, N. D., & Todd, P. (1992). Percieved usefulness, ease of use, and usage of information technology. A replication. MIS Quaterly , 16 (2), 227-247. Ahearne, M., Bhattacharya, C., & Gruen, T. (In press). Beyond the brand: Antecedents and consequences of customer-company identification. Journal of Applied Psychology.
129
Aladwani, A. M. (2003). Key Internet characteristics and e-commerce issues in Arab countries. Information Technology & People , 16 (1).
Baourakis, G., Kourgiantakis, M., & Migdalas, A. (2002). The Impact of e-commerc on agro food maketing. British Food Journal , 104 (8).
Bartlett, J. E., & Higgins, J. W. (2001). Organizational Research: Determining Appropriate Sample Size in Survey Research. Information Technology, Learning, and Performance Journal , 19 (1).
Bergami, M., & Bagozzi, R. (2000). Self-categorization, affective commitment and group self-esteem as distinct aspects of social identity in the organization. British Journal of Social Psychology.
BERGFELD, M.-M. H. (2009). GLOBAL INNOVATION LEADERSHIP: THE STRATEGIC DEVELOPMENT OF WORLDWIDE INNOVATION COMPETENCE. Germany: Cardiac communications.
Bernoff, J., & Li, C. (2008). Harnessing the power of the oh-so-social web. MIT Sloan Management Review , 49 (3).
Bhattacharya, C., & Sen, S. (2003). Consumer-company identification: A framework for understanding consumers' relationships with companies. Journal of Marketing , 67.
Blackburn, R. & Athayde, R. (2000). Making the Connection: The Effectiveness of Internet Training in Small Businesses. Education and Training 42(45).
Brynjolfsson, E., & Smith, M. Frictionless commerce? A comparison of internet and conventional retailers. Management Science , 46 (4). 130
Burney, S. M. (2008). Research Approach. University of Karachi, Computer Science. Chiang, K., & Dholakia, R. (2003). Factors driving consumer intention to shop online: an empirical investigation. 13 (1/2).
Damen, G. A., Dubel, J., & Strikwerda, H. (2009). Crossing the Threshold. Nolan, Norton & Co.
Davis, F. (1986). A technology acceptance model for empirically testing new end-user information systems: Theory and results. Massachusetts Institute of Technology, Sloan School of Management.
Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quarterly , 13 (3).
Dennis, C. (2000). Networking for Marketing Advantage. Management Decision , 38 (4). Dennis, C., Merrilees, B., Jayawardhena, C., & Wright, L. T. (2009). E-consumer behaviour. European Journal of Marketing , 43 (9).
Dutton, J., Dukerich, J., & Harquail, C. (1994). Organizational Imagesand member identification. Administrative Science Quarterly , 39.
Esrock, S. L. (n.d). Online Shopping: To Buy or Not to Buy? AC Journal , 2 (3). FBI. (2001). Internet Fraud Watch of the National Consumer League (NCL), 2001 NCLs On-line shopping survey, carried out in USA with a sample of 1,003 adults. FBI Internet Fraud Complaint Center.
Feldman, S., (1999): The Objects of E-Commerce, OOPSLA99, Denver 131
(USA). Fielding, J. (1996). Getting Out in Front with EDI. Inform , 10 (9). Garrity, E. J., O'Donnell, J., KIm, Y. J., & Sanders, G. L. Measuring consumer shopping oriented web site success: A motivation-based model. Richard J. Wehle School of Business, Buffalo. Gefen, D. (2002). Customer Loyalty in e-commerce. Journal of the Association for x Henderson, N. R. (2009). Managing Moderator Stress: Take a Deep Breath. You Can Do This! . Marketing Research Journal , 21 (1). Hermeking, M. (2005). Culture and Internet Consumption: Contributions from CrossCultural Marketing and Advertising Research. Journal of Computer-Mediated Communication , 11 (10). InfoWorld. (2000). InfoWorld - Defining Techonology for Business. 22 (29). Inmon, W. H. (2000). eBusiness Infrastructure. Billinmon. Kalakota, R., & Whinston, A. B. (1996). Electronic Commerce - A Manager's Guide. Keil, B. M., & Konsynski, P. B. (1995). Usefulness and ease of use: Field study evidence regarding task considerations, Decision support systems. 13 (1), 75-91. Kraljic, P. (1983). Purchasing Must Become Supply Management. Harvard Business Review .
132
Krzywonos, R. (2000). What happens after the "BUY" button is hit: Managing the performance integration of the e-business . Communication News .
Lawrence, K. (1997). Factors Inhibiting the Utilisation of Electronic Commerce Facilities in Tasmanian Small- to Medium- Sized Enterprises. Proceedings of the 8th Australasian Conference on Information Systems. Adelaide.
Lee, L., Pi, S., Kwok, R., & Huynh, M. (2003). The contribution of commitment value in Internet commerce: An empirical investigation. Journal of Association for Information Systems , 4.
Levitt, T. (1981). Marketing Intangible Products and Product Intangibles. Harvard Business Review .
Lin, C., Varadharanjan, V., & Wang, Y. (2005). Maximizing Utility of Mobile Agent Based E-commerce Applicaitons with Trust Enhance Security. Departmnet of Computing.
Lummus, R., & Vokurka, R. (2002). Making the right e-fulfillment decision . Production and Inventory Management Journal , 43 (1-2).
Martin, L.M. & Matlay, H. (2001). Blanket Approaches to Promoting ICT in Small Firms: Some Lessons from the DTI Ladder Adoption Model in the UK. Internet Research: Electronic framework. Logistics Information Management, 14(1-2).
McGowan, M.K. and Madey, G.R. (1998) The Influence Of Organization Structure And Organizational Learning Factors On the Extent Of EDI Implementation In U. S. Firms, Information Resources Management Journal 11(3).
133
McKnight, D., Chodhury, V., & Kacmar, C. (2002). The Impact of initial consumer trust on intentions to transact with a web site: A trust building model (Vol. 11). Journal of Strategic Information Systems.
Meyer, M., & ., M. Z. (1996). The design and development of information products . Sloan Management Review , 37 (3).
Miller, N.L. & Besser, T.L. (2000). The Importance of Community Values in Small Business Strategy Formation: Evidence from Rural Iowa. Journal of Small Business Management 38(1).
Motwani, J., Kumar, A., Jiang, J., & Youssef, M. (1998). Business process reengineering: A theoretical framework and an integrated model. International Journal of Operations & Production Management , 18 (9/10).
NetRatings. (2003). How the Internet has Changed Our Lives. NetRatings, Inc. Ngai, W., & Wat, K. (2002). A literature review and classification of electronic commerce research. Information & Management , 39 (5).
OECD. (2004). OECD Information Technology Outlook. Organisation for Economic Cooperation and Development.
Oram, A., & Viega, J. (2009). Beautiful Security. USA: O'Reilly Media. Park, N., Lee, K. M., & Cheong, P. H. (2007). University Instructors' Acceptance of Electronic Courseware: An Application of the Technology Acceptance Model. Journal of computed-mediated communication.
134
Seidmann, A., & Sundararajan, A. (1997). The effects of task and information asymmetry on Business Process Redesign1997;. International Journal of Production Economics , 50 (2-3).
Srinivasan, S., Anderson, R., & Ponnavolu, K. (2002). Customer Loyalty in e-commerce: an exploration of its antecedents and consequences. Journal of Retailing , 78 (1).
Tanewski, G. (2003). Achieving Strategic Benefits from B2B eCommerce: A Multiple Case Study of the Australian Automobile Industry. Monash University, Department Accounting & Finance.
Tatnall, A. (2007). Encyclopedia of portal technologies and applications: M - Z, Volume 2 . USA: IGI Global.
Tuunainen, V. K. (1999). Opportunities of Effective Integration of EDI for Small Businesses in the Automotive Industry. Information & Management, 36(6)
UN. (2001). World investment report . United Nations Conference on Trade and Development . NY: UN.
Venkatesh, V. (2000). Determinants of percieved ease of use: Integrating control, intrinsic motivation, and emotion into the the technology acceptance model. Information systems research , 11 (4).
Venkatesh, V., & Davis, F. D. (1996). A Model of the Antecedents of Perceived Ease of Use: Development and Test. Decision Sciences , 27 (3).
Walczuch, R., Van Braven, G. & Lundgren, H. (2000). Internet Adoption Barriers for Small Firms in the Netherlands. European Management Journal, 18(5). 135
Wells, M. G. (2000). Business process re-engineering implementations using Internet technology . Business Process Management Journal , 6 (2).
Welsh, J.A. & White, J.F. (1981). A Small Business is not a little Big Business. Harvard Business Review, July-August, 18-32.
Wijnhoven, F. (2002). The importance of information goods abstraction level for information commerce process models. Journal of Electronic Commerce Research , 2 (2).
Zeng, Y. E., Wen, J. H., & Yen, D. C. (2003). Customer relationship management (CRM) in business-to-business (B2B) e-commerce. School of Business, Miami University. Miami: Emerald Insight.
Websites
Azad, A. K., & Islam, N. (2010). Overview of Internet Access in Bangladesh: Impact, Barriers, and Solutions . Retrieved August 21, 2010, from Internet Society: http://www.isoc.org/inet97/proceedings/E3/E3_1.HTM BBC. (2001, November 19). The Internet's Effect on Society. Retrieved August 25, 2010, from BBC: http://www.bbc.co.uk/dna/h2g2/A650684 Beynon-Davies, P. (2009). Forms of e-commerce - Level 3. Retrieved from University of Wales Swansea: http://www.designersplus.co.uk/unit3/forms_of_e_commerce/level3.html BrandRepublic. (2010). Advertising, media, marketing and PR news and jobs. Retrieved August 2010, 2010, from Brand Republic: http://www.brandrepublic.com/
136
BYU. (n.d). Research methods: Planning: PARAMETERS IN DEPTH. Retrieved September 01, 2010, from BYU:
http://linguistics.byu.edu/faculty/henrichsenl/researchmethods/RM_2_02.html DoingBusiness. (2010). Doing Business 2010 data for the selected economy - Bangladesh. Retrieved September 01, 2010, from Doing Business:
http://www.doingbusiness.org/exploreeconomies/?economyid=17 EnterpriseSurveys. (2007). Explore Economies. Retrieved August 31, 2010, from The world bank Group:
http://www.enterprisesurveys.org/ExploreEconomies/?economyid=17&year=2007 FTC. (2009). Consumer information. Retrieved July 8, 2010, from FTC Bureau of Consumer Protection: http://www.ftc.gov/bcp/consumer.shtm Gibbs, A. (1997). Focus groups. Social Research Update Issue Nineteen. Retrieved September 2, 2010, from University of Surrey:
http://www.soc.surrey.ac.uk/sru/SRU19.html. Google, Inc. (2007, November 5). Industry Leaders Announce Open Platform for Mobile Devices . Retrieved September 24, 2010, from Google Press Center:
http://www.google.com/intl/en/press/pressrel/20071105_mobile_open.html Hammer, M. (1996). REENGINEERING RECYCLED - How the Process-Centered Organization Is Changing Our Work and Our Lives. Retrieved August 28, 2010, from http://www.businessweek.com/1996/34/b348940.htm
137
Helfat, C. E. (2000, July). PRODUCT SEQUENCING, KNOWLEDGE, AND ECOMMERCE. Retrieved from
http://mba.tuck.dartmouth.edu/digital/Research/AcademicPublications/ProductSequencing .pdf Herek, G. M. (2009). A Brief Introduction to Sampling. Retrieved September 03, 2010, from University of California:
http://psychology.ucdavis.edu/rainbow/html/fact_sample.html Hofstede, G. (2009). India Geert Hofstede Cultural Dimensions Explained. Retrieved August 22, 2010, from ITIM: http://www.geert-hofstede.com/hofstede_india.shtml IBM. (2009). IBM Patterns for e-business Ressources. Retrieved June 25, 2010, from IBM official company website: https://www.ibm.com/developerworks/patterns/library/#visio ICC. (2010). ICC brief on globalization. Retrieved August 25, 2010 , from The world business organization: http://www.iccwbo.org/id1283/index.html IDM. (2010). Marketing Training Course and Qualifications. Retrieved August 22, 2010, from IDM: http://www.theidm.com/ IntelliQuest. (2006). IntelliQuest Business Online Behavior Study . Retrieved August 30, 2010, from KMR Group: http://www.kmr-group.com/main.asp?p=113&finfo=109 InternetWorldStats. (2010). INTERNET USAGE STATISTICS The Internet Big Picture. Retrieved August 31, 2010, from World Internet Usage Statistics:
http://www.internetworldstats.com/stats.htm
138
Kazumori, E. a. (2010, August 25). Selling online versus offline: theory and evidences from Sotheby's. (ACM, Producer) Retrieved from http://www.informatik.uni-
trier.de/~ley/db/.../sigecom2003.html Key, J. P. (1997). Research Design in Occupational Education. Retrieved August 31, 2010, from Oklahoma State University:
http://www.okstate.edu/ag/agedcm4h/academic/aged5980a/5980/newpage2.htm MED. (2009). Continuing Importance of E-Commerce . Retrieved August 21, 2010, from Ministry of Economic Development:
http://www.med.govt.nz/templates/MultipageDocumentPage____16344.aspx Morton, S., Zettelmeyerf, F., & Risso, J. (2001). Internet car retailing. Retrieved August 10, 2010, from Yale University and NBER. SESSI (Service des Etudes et des Statistiques industrielles): http://www.finances.gouv.fr/minefi/chiffres/index.htm NMAUk. (2010). New Media, Marketing, Advertising & Interactive News & Jobs. Retrieved August 22, 2010, from http://www.nma.co.uk/ Norman, J. (2010). eCommerce Timeline: From cave Paintings to the internet. Retrieved July 2, 2010, from HIstory of science, medicin and technology:
http://www.historyofscience.com/G2I/timeline/index.php?category=eCommerce Portland State University. (n.d.). Internal Analysis (Tangible and Intablie) Ressources X Capabilities Core Competencies and Competitive Advantages. Retrieved from Portland State http://www.sba.pdx.edu/faculty/scottm/smaccess/BusStratNotes/Ch4Notes.ppt. University:
139
Reza, S. I. (2009, June 06). WiMAX to reduce digital gap between rural and urban Bangladesh. Retrieved August 31, 2010, from Bangladesh Economic News: http://bangladesheconomy.wordpress.com/category/telecom-sectorinternetwimax/page/5/
Stanford University. (2002, June 21). Globalisation. Retrieved August 22, 2010, from Stanford Encyclopedia of Philosophyy: http://plato.stanford.edu/entries/globalization/#1
TVU. (n.d). Secondary Data Collection . Retrieved from The official Thames Valley University website: http://brent.tvu.ac.uk/dissguide/hm1u3/hm1u3text2.htm
SDSU. (2010, September 1). ROHAN Academic Computing Chapter 5. Retrieved from San Diego State University Web site: http://www-
rohan.sdsu.edu/~renglish/370/notes/chapt05/index.htm UCSF. (2010). Bangladesh-Comprehensive Indicator Report . Retrieved September 1, 2010, from University of California: http://hivinsite.ucsf.edu/global?page=cr08-bg00&post=19&cid=BG Uhrbach, M. (2006). How does firm size affect the perceived benefits of Internet business? Retrieved August 30, 2010, from Statistics Canada: http://www.statcan.gc.ca/pub/88-003x/2007002/10328-eng.htm UOGuelph. (n.d). Descriptive Research. Retrieved September 2, 2010, from University of Guelph: http://www.uoguelph.ca/htm/MJResearch/ResearchProcess/DescriptiveResearch.htm VeriSign. (2010, August 15). VeriSign SSL SSL Information Center. Retrieved from VeriSign Company Website: http://www.verisign.com/ssl/ 140
Appendix 1
Theory related to EC
E-business Vs. E-commerce There have been alternative views on the link between e-commerce and e-business. First view (figure 2): E-commerce (EC) has some parts that overlap with e-business (EB). The shaded area represents a where there is an overlap between EC and EB. This view however can be rejected, as in reality there is a significant overlap between sell-side and buy-side e-commerce (Smith, Russell, & Chaffey, 2005).
EC
EB
Source: Chaffey, 2005 *
141
Second view (figure 3): this view suggests e-commerce is equivalent to e-business and both terms can be used interchangeably.
EC=EB
Source: Chaffey, 2005 * Third view (figure 4): This view shows e-commerce as being a subset of e-business. It seems to be the most realistic amongst the three views. As e-commerce does not refer to many of the transactions that take place within a business, like purchasing order, which is part of e-business (Chaffey, 2004).
EB EC
142
Source: Chaffey, 2004, p.10*
First view Some parts of EC overlap with EB It is rejected, small overlap between sellside and buyside ecommerce
Second View EC = EB Both temrs are interchangeably
Third view EC as being a subset of EB most realistic EC covers transactional aspects EB covers business processes and relationships
Source: Chaffey 2005; Smith, Russell, & Chaffey, 2005 B2B - Business to Business (B2B) Samtani (2002) says B2B e-commerce is being talked about everywhere; it has reshaped the way businesses function. It is the new way to interact with business partners in realtime. All businesses can be managed online, from supply chain to manufacturing, and product development. It offers increased control and offer response to its users. The author defines B2B e-commerce as a type of e-commerce involving a transaction from one business to another via the Internet.
143
B2B facilitates organizations to interact with other businesses electronically, typically via the World Wide Web. B2B solutions contribute to the business in numerous ways, it helps increase productivity, reduce worker overhead and clear audit trailing. B2B models focuses on what the Internet has to offer that the offline world does not, the provision of complex information services to be more specific(Zeng, Wen, & Yen, 2003, p. 39). The characteristic of B2B include: Externalities and exponential growth: the value proposition for a B2B hub that it increases value as the square of the number of its participants. This means as each time new participants are added, other participants already within the hub can contact with new participants. Therefore, all participants obtain value from each new addition(Xu & Quaddus, 2009) Customer cohesion: Purchasing departments of large organizations need approval of a chain of command to make a purchasing decision. B2B portals offer resolve this issue by having transacting systems that offer settlement and reconciliation. Businesses have a longer sales cycle, once they make a switch; they tend to remain more loyal. Content and category depth: Participants of B2B consists of sophisticated buyers and sellers; they usually tend to have particular requirements and demands. B2B marketers must be able to understand the unique processes of the targets markets. Broadening and deepening services: Businesses that are more mature in this field are offering complimentary services that include, systems integration, hosting and financial
144
services (credit analysis, payment processing, receivables management) along with logistics services (transportation, warehousing, inspection).
Disintermediation: This is one of the primary benefits and of B2B, it offers solutions to remove existing costly intermediaries. It offers a direct link for companies to interact with its target market without having a middleman. (Zeng, Wen, & Yen, 2003, pp. 39-40)
Externalities and exponential growth Value proposition to participants Increase sharing of value between participants Customer "cohesion" makes large organizations more united B2B portals offer transaction reconciliation builds more loyal customers Content and category depth B2B buyers and sellers are sophisticated they have unique demans B2B marketers must understand these demands Broadening and deepening services mature business offer complimentary services systems integration financial services logistics services Disintermediation cut costly intermediaries create direct link with target market
145
B2C - Business to Consumer According to Helfat (2000), business to consumer (B2C) refers to businesses that sell its products and services directly to end-users over the Internet. These retailers include small star-up companies, established bricks-and-mortar and mail and order companies that added an online store to their existing business. B2C relationships are built upon knowledge and sharing of information. Like most retailers, their core knowledge relates to retail sales. Internet retailers need to be more aware of integrative knowledge, to enable incremental learning about retails sales and Information technology. Integrative knowledge allows retailers to acquire feedback about customer purchasing behavior. Whereas, brick and mortar stores are not able to acquire information relating to individual customers. This will give companies an advantage by providing an insight, which can be used towards developing new products, improving existing products and narrow down on targeted selling. B2C e-commerce has changed how businesses operate(Helfat, 2000). Going back a few decades, mass production was very much prevalent. Mass production means standardized products, homogeneous markets and long product life.Today, mass
146
customization
is
catching
on
with
businesses
around
the
world.
Business reduce cost Increase knowledge about customers build stronger relationship with customers increase sales develop new products narrow down on the target market
Consumer products that solve needs more effectively compare products onine decrease costs associated with searching communicate with seller efficiently resulting in better products in the future
Mass Customization Mass customization is popularizing. One in which products are not standardized, and markets are heterogeneous and fragmented. gives opportunity for consumers to configure their own products according to their needs and wants. This is possible when the organization offering mass customization services to its customers is both a retailer and a producer. With the help of the Internet, companies are able to exchange information directly with the consumer and make products that are designed specifically to cater the unique needs of its target market (Pine & Davis, 1999, p. 33).
147
Other authors define B2C e-commerce to be a broader. They state it impacts more than just the sell side of the company, which was the basis of what was written by Helfat (2000). Sun (2004) writes e-commerce involves electronic transactions in marketing, ordering, paying and after sales service. This shows that e-commerce covers almost all major processes within the business, not the sell-side only, which was the argument by Helfat (2000). C2C - Consumer to Consumer C2C e-commerce supports the community chain around the organization. It works as an extension of community activities. Usually takes place between individuals and involves exchange of cash for goods or services. Members within the community or social networks generate value from other forms of C2C transactions. Social capital may be located in social networks. Social network includes features of social organization, such as networks of secondary associations and high degree of interpersonal trust. These are resources for members within the society that facilitate collective action(Beynon-Davies, 2009).
148
C2B - Consumer
to
Business
Consumer to business (C2B) e-commerce is possible thanks to the internet. Consumers are able to find easier methods to communicate with companies. Many companies request prospects and customers to send in suggestions and questions through company websites. Consumers search for sellers online, learn about the offers, make the purchase and provide feedback. Planetfeedback.com enable consumers offer suggestions, complain, or deliver positive feedback. Then these queries are delivered to the customer service manager of each company(Armstrong & Kotler, 2005, p. 516). It enableorganizations to improve products and develop new and better products, while keeping customer requirements in mind B2E - Business to Employee Business to employee (B2E) e-commerce is essentially intrabusiness. When the organization delivers its goods and services at a reduced price to its employees. It can be used to increase employee productivity and satisfaction. Employees are treated like the customers in B2C, they can make use of electronic catalogs and ordering forms to place orders. This is done using company intranet, the system disseminate information and allow workers to manage their benefits (Turban, King, Viehland, & Lee, 2009, p. 345).
149
e-commerce business
models
A set of planned activities is referred to as a business model, it may also be called business processes. It is usually designed to earn a profit within the marketplace. A business model is always a strategy. Though, they relate closely, business model takes competitive environment into consideration. The business model lies at the center of the business plan, which is an article that illustrates the companys business model. Thus, the business place takes the competitive environment into account. The goal of e-commerce business model is to leverage unique aspects that Internet and World Wide Web brings to the firm(Laudon & Traver, 2008, p. 66). There are eight key elements that the business model must effectively address in order to build a successful model.
150
value propositio n Manageme nt team Revenue mode
Organizati onal developme nt
Business model
Market opportunit y
Market strategy Competitiv e advantage
Competitiv e environme nt
The following table contains the eight elements and key questions that describe each component. Table: Key elements of a business model Components Value proposition Revenue model Market opportunity Key questions Why would consumers buy from the firm? How will the firm earn a profit? Which market segment the company wishes to serve and if it large enough? Competitive environment Who else serve this market segment?
151
Competitive advantage
What are the advantages the company is bringing to the market segment?
Market strategy
What are the promotional plans and how targeted market can be attracted?
Organizational development Management team
What kind of organizational structure would be suitable to carry out the business plan? What type of leaders matter to the company in terms of previous experience and background?
Source: Laudon & Traver, 2008 *
Value Proposition The value proposition lies at the heart of the business model. Value proposition is essentially how the companys products and services satisfy customers needs and wants. Whether the company wishes to develop or analyze the value proposition, its crucial to know why customers choose to business with the company in question and not with other companies, and what the company has to offer that others cannot match. E-commerce value proposition consist of cost reduction incurred from reduced search cost, personalization and customization of product offerings, and reduction of price discovery costs. Most companies develop value proposition by basing it on the current market conditions and trends(Laudon & Traver, 2008, pp. 67-68).
152
Revenue model The companys revenue model describes how the firm will earn a profit from its revenues and produces a positive return on capital invested. The terms revenue model and financial model are used interchangeably. The primary function of organizations is to produce a return greater that of alternative investments. The revenue model consists of combination of the following models: advertising model, subscription model, transactional fee model, sales model and affiliate model. Advertising revenue model: It is a web site that proposes consumers with content, services and products along with a forum of advertisements. As a result, the company incurs revenue from advertisers. Subscription revenue model: it is a web site that offers its users with content only when the subscription fee has been paid and access to the web site information is granted. Usually these sites offer high value added and premium offerings that others do not offer. Transactional fee revenue model: the company receives a fee at completion of each transaction. Sales revenue model: revenue is generated by directly selling goods and services to consumers. Affiliate revenue model: the site is there to drive business to an affiliate and thus it charges a small referral fee or percentage of the revenue from sales that took place. (Laudon & Traver, 2008, pp. 68-70)
153
Revenue model if the firm will earn a profit from its revenues revenue model and financial revenue are used interchangea bly primary goal of the firm is to generate returns
Advertising revenue model website that offer consumers with content, services and products by putting advertiseme nts on the site, it earns a profit
Subcription revenue model access granted to subscribers only subscribtion fee is the firm's earning
Transactional fee revenue model company charges a fee for each completed transaction
Sales revenue model revenue generated directlyfrom selling to customers
Affiliate revenue model firm drives business to affiliates charges a small referral fee
Market opportunity Market opportunity is defined as the firms intended marketspace, which is an area of actual or potential commercial value. Market niches usually make up market opportunity. The revenue potential of a marketspace that the company wishes to compete defines the realistic market opportunity. For instance, a startup ready-made garments (RMG) manufacturer produces and sells mens formal wear over the Internet. The overall size of this market segment is $100 billion hypothetically. This market segment can be broken down into two major market segments: ready-made wears, which comprise 60% (60 billion in revenue) and the tailormade wears, which account for 40% (40 billion in revue). If these two major market
154
segments are broken down furthermore, smaller market niches will emerge. Since the firm is a startup, it cannot effectively compete with large businesses, this portion of the market is dominated by large brand names. Therefore, the company can choose to expand its wings on smaller market niches. This can be defined as the firms realistic market opportunity(Laudon & Traver, 2008, p. 70). Organizational development
Most e-commerce businesses grow at a staggering level and turn into large multi million dollar corporations. Most of these companies start off with one visionary individual, however one person alone can rarely manage a large institution. In order to support the fast growth, the firm needs employees and a set of business procedures. All firms, start ups specifically need to implement its business plans and core strategies efficiently. Many ecommerce firms lack supportive cultural values to support new forms of e-commerce and proper organizational structures, which in turn led to their demise. In order for companies to thrive the firm need to have a organizational development plan in place, it will describe a set of activities that the company will need to be accomplish. To do so, functional departments need to assigned (production, shipping, marketing and finance). Then these need to be broken down further more, the jobs related to each department need to be identified. The firm will start the recruitment process according to specific job titles and responsibilities. Usually start-ups will hire individuals that are able to carry out all tasks related to the firm. Gradually, the positions can be broken down and each individual may have responsibilities that are more specialized (Laudon & Traver, 2008, pp. 73-74).
155
Management team
The management team is deemed to be the single most important element of the entire business plan. A management team is responsible for making the model work. The model will be instantly more credible to investors and other stakeholders if a strong management team supports it, the team should not attempt to salvage a weak model but to redefine the business as needed. Down the years, most firms will require several senior executives and managers. The skills and expertise possessed will be the root of competitive advantages or in some cases disadvantages. It is key to find managers that can cope with all types of situations, individuals with related experience and a sturdy background to tackle with new and unexpected organizational needs. The company must define resources that are available and where most expertise is required within the company, questions like: how much to pay them? Which department to put them in? Are likely to arise. These need to carefully analyzed and answered in order to develop a strong management team(Laudon & Traver,
156
2008,
pp.
73-74).
more credible to investors
root of competitive advantages
Strong management team
tackle unexpected situations
allocate ressources accordingly
The above portion described aspects of a business model. According to Laudon (2004) the most common e-commerce B2C business models are: Portal: This type of business model offers an integrated solution for content and services, such as news email and instant messaging to consumers. Consumers often start their online experience on it, they make searches, check emails, check for news. Portals are often viewed as gateways to the Internet. These sites earn revenue from advertising, subscription fees and transaction fees. Content provider: these sites offer information and entertainment. It includes newspaper and sports sites, and other sources that offer current news or how to guides and tips. Transaction broker: Responsible for processing sales transactions. Such as stockbroker and travel agents. Their goal is to make transactions faster and cheaper for consumers. Revenue is earned via transaction fees.
157
Market Creator: Online businesses that create new markets that bring buyers and sellers together. Revenue is earned by charging transaction fees. Service provider: companies that offer a product that is intangible in nature, they offer a service to consumers.Revenue is earned by selling services. Community provider:These sites unite individuals with common interests, hobbies and experience thus creating a social network. On the other hand, (Longenecker, Moore, Petty, & Palich, Small business management: an entrepreneurial emphasis, 2006)states e-commerce B2C models as: 24/7 e-tailing: firms following this model are focused on individual end users, their product offerings are very diverse in nature. They have several advantages over brick and mortar retailing, such as speed of access and transaction, along with consumers can access products and services around the clock. Auction site model: Potential end users can bid for items online listed either by a business or an individual. Revenues are earned by charging users with a listing fee and percentage of final sale amount. Transaction-based model: firms that follow this model of e-commerce provide a method for buying and selling products online. This is said to be at the heart of e-commerce, consumers can shop, click and buy.
158
Appendix 2
Prepared by:
Anonyo Hossain
Date:
Purpose We are conducting a study about the impact of e-commerce on the RMG sector of Bangladesh. The questions will cover your business Internet use and the transactions you may have made over the Internet with a RMG supplier in Bangladesh. Your answers will be kept confidential and be used for academic purposes only. This survey is voluntary.
1) To what extent would you agree that the Internet has changed your way of conducting business?
2) How long have you used the Internet to support business practices?
Less than one year 1 to 2 years 2 to 4 years 4 to 5 years 5 or more
159
3) To what extent do you use the Internet for business purposes? Not including
employees using it for personal reasons.
Very often Often Seldom Not very often Not at all
4) For which of the following activities did you use the Internet?
Find business information Communicate with suppliers Buy products/services in relation to your business Online recruitment/employment services Sold products/services
5) How did you find suppliers located in Bangladesh?
Traditional (offline, other business, newspaper) Trade/Industry related sites Suppliers sites Search engines Other online method Specify _________________________
6) How important is the Internet when it comes to managing your customer service initiatives using online methods?
Very Important Important Moderately Important Of little Importance Unimportant
7) To what extent did you consider the trust factor before conducting a business transaction with an RMG supplier located in Bangladesh that you found online?
A Great Deal Much Somewhat Little Never
160
8) For what reason(s) have you chosen to conduct business with an RMG supplier in Bangladesh?
Availability Price Quality Service Competitive pressure
9) To what extent would you agree that the Internet has enhanced your communication process with RMG suppliers in Bangladesh?
10) What is the likelihood of your company to make rapid changes in your business processes with the usage of the Internet?
Definitely Very probably Probably Possibly Probably not Very Probably not
11) To what extent would you agree that the Internet has enabled your company to gain key competitive advantages?
12 How would you rate the technical knowledge of RMG suppliers in Bangladesh related to the Internet?
Excellent Very good Good

161
Fair Poor
13) Were you ever concerned with the factors(s) below when conducting business online?
Too costly Too difficult to use No need Security, confidentiality or privacy concerns Other Specify _______________________
14) Overall, How did implementing e-commerce add value to your business? Please elaborate:
162
Appendix 3
Prepared by: Anonyo Hossain Date:
Purpose I am conducting a study about the impact of e-commerce on the RMG sector of Bangladesh. The questions are related to the implementation of e-commerce to support your business procedures. Your answers will be kept confidential and be used for academic purposes only. This survey is voluntary.
1) How did e-commerce add value in your supply chain?
2) What are the main barriers at implementing EC in Bangladesh?
3) What are the areas that require improvement in relation to conducting e-commerce from Bangladesh? 4) How would you reach greater customer base and enhance customer relationship management (CRM) with the usage of e-commerce?
5) Do you have plans for supply chain integration using Internet technology?
Thank you for participating !!!
163
Appendix 4
Prepared by: Anonyo Hossain Date:
Purpose I am conducting a study about the impact of e-commerce on the RMG sector of Bangladesh and it is based on progWears. The following questions will enable me to fill out an overview about progWears. Your answers will be kept confidential and be used for academic purposes only. This survey is voluntary. 1) When was your company established?
2) How and why did you enter the RMG sector? 3) How did implement e-commerce into your business model?
4) Why do you choose to operate from Bangladesh?
5) Where is your company located?
6) How did you expand your business form selling using the Internet?
7) Do you offer any services that would not be possible without the Internet?
8) Where are most of your customers located?
164
Appendix 5
(See attached)
165
166
167
168
169

Anonyo Dissertation FINAL PDF

Загружено:

Сведения о документе

Исходное описание:

Оригинальное название

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Anonyo Dissertation FINAL PDF

Загружено:

Авторское право:

Доступные форматы

Impact of electronic commerce on ready-made garment sector of Bangladesh A case study on ProgWears University of Wales Institute, Cardiff (UWIC)

Submitted by: Anonyo Hossain Student ID: ST09005912

Impact of electronic commerce on ready-made garment sector of Bangladesh

Impact of electronic commerce on ready-made garment sector of Bangladesh

Impact of electronic commerce on ready-made garment sector of Bangladesh

Impact of electronic commerce on ready-made garment sector of Bangladesh

Chapter 2: Literature Review ......................................................................................... 23

Impact of electronic commerce on ready-made garment sector of Bangladesh

Chapter 3: Methodology .................................................................................................. 51

Impact of electronic commerce on ready-made garment sector of Bangladesh

Chapter 4: Data analysis.................................................................................................. 67

Impact of electronic commerce on ready-made garment sector of Bangladesh

Chapter 5: Conclusion and Recommendation ............................................................... 89

Impact of electronic commerce on ready-made garment sector of Bangladesh

Impact of electronic commerce on ready-made garment sector of Bangladesh

Impact of electronic commerce on ready-made garment sector of Bangladesh

Chapter 1: Background of the study

1.1 Theoretical background

Impact of electronic commerce on ready-made garment sector of Bangladesh

Figure 1.1: E-commerce categories

C2B B2C B2E

A thorough definition of e-commerce categories can be found in Appendix 3

Impact of electronic commerce on ready-made garment sector of Bangladesh

Impact of electronic commerce on ready-made garment sector of Bangladesh

Impact of electronic commerce on ready-made garment sector of Bangladesh

1.2 Background of electronic commerce in Bangladesh

Impact of electronic commerce on ready-made garment sector of Bangladesh

1.2 Background of ProgWears

Impact of electronic commerce on ready-made garment sector of Bangladesh

1.3 Statement of the problem and significance of the study

Impact of electronic commerce on ready-made garment sector of Bangladesh

Impact of electronic commerce on ready-made garment sector of Bangladesh

1.3 Significance of the study

Impact of electronic commerce on ready-made garment sector of Bangladesh

1.6 Research objectives

The following research objectives were established:

To examine whether e-commerce can serve as a source of competitive advantage.

Impact of electronic commerce on ready-made garment sector of Bangladesh

1.7 Beneficiaries of the study

1.8 Limitations of the study

Impact of electronic commerce on ready-made garment sector of Bangladesh

1.9 Framework of the dissertation

Chapter 2: Literature Review

Chapter 4: Data analysis

Chapter 5: Conclusion and recommendation

Impact of electronic commerce on ready-made garment sector of Bangladesh

Chapter 2: Literature Review

2.1 The changing face of e-commerce

Impact of electronic commerce on ready-made garment sector of Bangladesh

Impact of electronic commerce on ready-made garment sector of Bangladesh

Figure 2.1: E-commerce Timeline

Amazon was founded eBay was founded

Larry Page and Sergey Brin starts Google.

Source: Norman, 2010

Impact of electronic commerce on ready-made garment sector of Bangladesh

2.2 E-business defined2

See Appendix 1 for detailed theory in relation to difference between EC and EB

Impact of electronic commerce on ready-made garment sector of Bangladesh

2.3 Benefits of e-commerce

Impact of electronic commerce on ready-made garment sector of Bangladesh

Impact of electronic commerce on ready-made garment sector of Bangladesh

Impact of electronic commerce on ready-made garment sector of Bangladesh