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A Research On E-Commerce On India and Research Agenda For The Future
A Research On E-Commerce On India and Research Agenda For The Future
Submitted by:
Nitin Kishan Sharma
MCA IIIrd Year
Enroll No- 0771564408
Code-MCA 331 Project
INDRAPRASTHA UNIVERSITY
Abstract
Keywords
E-commerce adoption E-commerce in India E-commerce
literature
review E-commerce research agenda
1 Introduction
With the advent of Internet and its commercialization since
1994 [28, 29] a new medium of commerce popularly known
as E-Commerce (EC) rapidly emerged in the modern global
economy. E-commerce can be defined as the use of the
Internet and other networking technologies for conducting
business transactions [39]. Further, EC not only involves
selling and buying online but it also involves a host of
activities spanning the firms value chain like promotion of
product/services on the web, integrating invoicing and
payment from customers, secure transactions, and handling
customer queries online. In short, EC is an umbrella concept
to integrate a wide
4http://www.trai.gov.in/achievments/achievment.pdf.
Retrieved January 2008.
5Definition: The term Information and Communication
Technologies (ICT) refers to technologies designed to
access, process and transmit information. ICT encompass a
full range of technologiesfrom traditional, widely used
devices such as radios, telephones or TV, to more
sophisticated tools like computers or the Internet. The mix of
technologies used should be determined mainly by the
specific local context
and demand.
6NASSCOM stands for National Association for Software and
Services Companies. NASSCOM is the
premier trade body and the chamber of commerce of the ITITeS industries in India.
7http://www.nasscom.in/Nasscom/templates/NormalPage.asp
x?id=53404. Retrieved 14th February
2008The Strategic Review 2008, NASSCOM Report.
8http://www.nasscom.in.Source: NASSCOM, Indian IT
IndustryFact Sheet, February 2007 related service exports
(NASSCOM definition of ICT related services includes
Business Process Outsourcing (BPO) services, Information
Technology (IT) software and services) grew by 34.6 per cent
(CAGR) annually between 2000 and 2006, from US$ 4 billion
to US$ 23.6 billion respectively. It is estimated that the
export value could reach US$ 60 billion in 2010. Gartner
industry research firm has estimated Indias Information and
Communication Technology (ICT) market to reach $24.3
billion by 2011, with an annual growth of 20.3 per cent.
9 With the positive climate for ICT growth, India is struggling
to make inroads in terms of successful EC adoption. Hence it
is very important for a developing country like India to
examine the issues encompassing EC adoption, which would
help the widespread adoption of EC across the country and
reap the benefits there of.
3 Literature review
Firms across the world have implemented EC and have
reaped the benefits that accrued due to the EC adoption.
Some of the benefits include improvements in operational
efficiency and revenue generation by integrating ecommerce into their value chain activities [5], access to
wider range of markets [4, 12, 13, 32], greater potential for
partnership with suppliers and vendors [18, 38], improved
customer services [2, 6, 38], 24 * 7 accessibility [10, 23],
flexibility in administration and partnership [4], information
update [3, 33, 38], lower transaction costs [2, 7, 25, 38],
product/service differentiation [4, 6, 19], ability to enter
supply chain of larger companies [11, 19], so on and so
forth. Though adoption of EC provides various benefits as
mentioned above and also, it has been widely acknowledged
that the adoption of EC by businesses in developing
countries is an important economic indicator of growth [26,
40], many firms in the developing countries like India, China
or South Africa still have not realized the potential benefits of
EC.
(4) high level of IT using firms (firms that have adopted FMS
in addition to
CAD/Cam and MIS).
Ordered probability model (PROBIT) was used
since the dependent variable is categorical and follows
ordinal ranking scale. The estimates were obtained by
maximum likelihood method. The study found that
entrepreneurs qualification, importance given to market
share, R&D, export intensity, work force skill and firm size
influence the degree of adoption of IT by the firms. Apart
from the studies mentioned above, there are quite handful of
research reports and survey based studies done by Internet
and Mobile Association of India [14], IMRB International [15],
Datamonitor [9, 27], and Internet and Online Association
[16] which presents with quantitative figures, the status of ecommerce existing in the
country.
5 Conclusion
It is quite understandable from the facts presented so far
that a little research on e-commerce adoption exists in
Indian context. With the Internet users in India well beyond 1
billion [9] in 2008 and increasing year on year, there are lots
of benefits that this Internet based e-commerce will bring to
the fore. To mention a few benefits, organizations can
achieve cost reductions, can improve their revenues, and
can provide enhanced services by incorporating EC. For the
individuals, online buying/selling can save time, search costs
and can avail best offers/discounts associated with purchase
of products/services.
Also given the facts that Indias economy is
growing steady at a GDP of 7.5%, size of B2C E-commerce
growing at an annual rate of 30%, IT sector revenue
expected to cross USD 7375 billion in overall software and
services revenue by FY2010 and telecommunication sectors
impressive growth with 300 mn wired and wireless telephone
subscribers, the country has lagged behind in the application
of EC. The growth of EC could provide a major contributor for
economic growth in India. Drawing a leaf from the pages of
organizations in developed countries that has effectively
realized the benefits offered by EC, it is time that India
should jump in to the bandwagon and follows the suit before
being left behind.
From the literature review, it can be understood
that so far scant attention has been paid to the EC research
in India, more and more research on this field in the areas
outlined in the previous section will surely make the firms to
appreciate and realize the advantages of EC adoption. Thus
Acknowledgements
I am grateful to Mrs. Pallavi Madam for her
able guidance and invaluable suggestions
References
1. Archana, K. (2008). Indian mobile market worlds secondlargest. McClatchyTribune Business News (April 11, 2008),
Washington.
2. Bakos, J. Y. (1998). The emerging role of electronic
marketplaces on the Internet. Communications of the ACM,
41(8), 3542.
3. Baron, J. P., Shaw, M. J., & Bailey, A. D. (2000). Web-based
e-catolog systems in B2B procurement. Communications of
the ACM, 43(5), 93100.
4. Brunn, P., Jensen, M., & Skovgaard, J. (2002). Emarketplaces: crafting a winning strategy. European
Management Journal, 20(3), 286298.
5. Brynjolfsson, E., & Kahin, B. (Eds.) (2000). Understanding
the digital economy. Cambridge: MIT Press.
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