E-Commerce

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CHAPTER 2: LITERATURE REVIEW

2.1 Introduction
Electronic Commerce or E-commerce is growing extensively on Internet. Although the term of "E-commerce" might sound bizarre, in reality it has been familiar activity: buy books online. Whereas some of people take these simple activities every day, most of them may not be familiar on how SMEs have applied E-commerce into their business strategies to guarantee their survival in new global marketplace [33]. There are comprehensive literatures in focussing on SMEs and E-commerce [39, 46, 47, 48, 49, 50]. Despite variations in topics and approaches, these authors have concluded that SMEs are increasingly using Internet and this will radically change the way SMEs operate their businesses. In this study, researcher focuses on B2C among SMEs due to: 1) B2C are much simpler to be implemented than B2B transactions for SMEs in Asia [52]; 2) B2C in Asia has becoming more important in today’s businesses [93]; 3) less complicated technology is required in implementing B2C among SMEs [57].

2.2 Definitions of E-commerce
There are comprehensive literatures available in the area of E-commerce depending on the context and research objectives of the authors. According to COM [1], E-commerce means “doing of business electronically”. It encompasses many diverse activities from electronic trading of goods and services until after-sales service. Choi et al. viewed E-commerce as an “economic system where firms and consumers are aided by computers and networking technologies that enable an entirely new market” [2]. Table below are the summaries of E-commerce under different perception. Table 1

E-COMMERCE IN DIFFERENT PERCEPTIONS
|Perceptions |Descriptions | |Business |To automate business transactions and workflows [5, 104] | |On-line |To provide and extent the capability of buying and selling goods| | |and its information through Internet and other on-line services | | |[6, 105] | |Service |To decrease costs while improving the quality of goods and | | |increasing the speed of service and delivery at the same time | | |(e.g.: Dell uses E-commerce to optimise their service | | |capabilities direct to customers while it can save costs up to | | |70%) [104] | |Communications |To deliver up-to-date information of products/services and | | |payments over communication networks [4, 40, 46] |

In this study, researcher have taken two definitions of E-commerce from Kalakota and Ngai et al. [105, 107] and adapted them in B2C context: "The sharing of information and the process of buying and selling goods or services by electronic data transmission through Internet” E-commerce principally covers two concepts, i.e. B2B and B2C. Business to Business transactions (B2B) simply means businesses selling to other businesses [6], e.g. manufacturers selling to wholesalers (www.dell.com); wholesalers selling to retailers; office suppliers selling to other offices (MyBiz.com); etc. Business to Consumer transactions (B2C) means businesses selling to consumers, usually in the form...
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