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2.3 Facilitators and inhibitors of the adoption of e-commerce
The electronic markets hypothesis posits that IT reduces coordination costs between suppliers and buyers, leading to the predominance of market-based forms of economic organization (Malone, et al., 1987). The primary drivers of this move are advanced communication technologies such as the Internet, which provide a technological platform that reduces information search costs. In this environment, a large number of products and suppliers can be eva luated by buyers in order to make well-informed decisions, which may result in unbiased electronic markets.
However, other IS researchers point out that, despite the existence of information and communication technologies, some industries which were expected to move to electronic markets have not done so. Possible explanations have emerged to explain this apparent contradiction, including the move-to-the-middle hypothesis and the risk-augmented transaction cost theory. On the other hand, Malone, et al. (1987, p. 484) recognize that the EMH leaves other important forces aside, such as stock prices, antitrust regulations, and interest rates. We propose a theoretical framework that aims to understand these forces. We will explain how IT favors or inhibits a move to unbiased markets. In this way, we hope to create valuable insights on the dynamics of market structure transformation in the presence of IT. [6]
The factors identified as prohibiting adoption of e-commerce technologies include a lack of perceived benefits, a lack of time, and prohibitive costs. External pressure to adopt the technologies by industry partners is present to a point, although the owner stated that "we have resisted this so far". Costs of setting up the technology given the current lack of information technology systems and processes, and their inexperience, is particularly important to this owner. He stated that "We're just not ready I suppose. It's like giving up smoking, when you're ready you do it", and adds, "Costs in terms of return on investment is not there for small traders". This participant perceived little benefit in adopting e-commerce technologies believing that because they are a small operation "the need isn't there at the present time. The return is not sufficient enough for us to do it". [5]
2.4 New strategic initiatives
For many manufacturers, e-business is increasingly a consumer service process, with supply chain management a second-place priority. The number of manufacturers selling 6 percent or more of their goods over the Internet has surged with nearly a quarter reporting this amount of activity. This is four times the number of companies that reported such Internet sales a year ago. Manufacturers’ interest parallels to some extent that of consumers who are also increasingly using the Internet for shopping to cut costs and simplify purchasing.
As e-commerce continues to impact the environment in which organizations conduct business, manufacturers are increasingly realizing the ways they can benefit by transforming aspects of their traditional business operations into e-business. Market pressures, competition, the degree to which technology is readily adaptable, and numerous constraints and 本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。