The Importance Of E Commerce In Globalization

In the new epoch of Globalization, new chances for states economic growing are strike harding the doors, the new tendencies of market open the manner for new states to emerge and heighten their economic systems, for the common Ultimate end of better well being. Kazakhstan, as the one of participant of planetary procedures of development of e-commerce, aspires to busy the appropriate topographic point in this market.

The analysis of information‘s application and communicating engineerings was carried out by the programs-the Real Monitoring of the Kazakhstan Internet and aˆ•Readiness for an Information Society by the Actis Systems Asia in Kazakhstan in 2001. The consequences of the analysis have shown the undermentioned representations about the Kazakhstan users of the Internet. The audience of the Internet in Kazakhstan is submitted in the basic experts in the given sphere, business communities and pupils. There are about two 1000000s of the work forces of the grownup population life in the big metropoliss. Therefore one million, work forces receives information from the Internet independently or through the mediators. Besides researches on the users of the Internet on a degree of the incomes have shown that the Internet is visited by the individuals both with high and low degree of income.

2.1 Importance of E-commerce

In fact, e-commerce semen to be one of the accelerators that can advance the manner for better trading and better economic system, Mahesh and Vishnu ( 2005 ) discourse how E-commerce has a enormous growing potency and besides generates economic growing in the state. Furthermore “E-commerce promises better concern for SME ‘s and sustainable economic development for developing countries.” ( Ruth, 2003 )

In add-on, at the beginning of 2000, Benbasat, Ives and Piccoli conducted a study of the IS World Community on the “Electronic Commerce Top Research Questions” . The consequence of that study indicates e-commerce success as one of the of import electronic commercialism research issues. And the measuring of E-commerce success is one of the research inquiries which are identified in that study. Alemayehu ( 2001 ) Therefore, while implementing e-commerce, we have to mensurate of E-commerce success to understand where we are now and which factors are more important for better implementing.

2.2 Defining and mensurating E-commerce

“Electronic commercialism or e-commerce refers to a broad scope of online concern activities for merchandises and services.” ( Anita, 2000 ) “E-commerce is normally associated with purchasing and merchandising over the Internet, or carry oning any dealing affecting the transportation of ownership or rights to utilize goods or services through computer- mediated work.” ( Thomas, 2000 ) “E-commerce is the usage of electronic communications and digital information processing engineering in concern minutess to make, to transform, and to redefine relationships for value creative activity between or among organisations, and between organisations and individuals” . ( Lallana et al, 2000 ) Furthermore definition of e-commerce is adopted depicting internet commercialism as “the sharing of concern information, keeping concern relationships and carry oning concern minutess by agencies of Internet- based technology.” ( Zwasse, 1996 ) “The E-commerce improves communicating channels and provides a practical interactive environment where the providers and clients can interchange information and products.” ( Gunasekaran and Ngai, 2005 ) Besides Evans and Wurster ( 1997 ) “acknowledge that e-commerce allows both clients and providers to cut down the minutess costs significantly and enables information to make more people without giving the profusion of the content.”

2.3 E-commerce positions

“Electronic commercialism and its related activities over the cyberspace can be the engines that improve domestic economic wellbeing through liberalisation of domestic services, more rapid integrating into globalisation of production, and leap-fogging of available engineering. Electronic commercialism integrates the domestic and planetary markets from its really inception.”A ( Catherine L. Mann, 2000 )

E-commerce frequently through to mention to the purchasing and merchandising of goods through the cyberspace merely. However, E-commerce involves much more than electronically mediated fiscal minutess between organisation and client Chaffey ( 2002 ) . Table.1 nowadayss scope of positions sing what is considered as E-commerce.

Table.1 Range of positions sing what is considered as “E-commerce”

( Beginning from: Kalakota and Winston, 1996 )

Figure.1 The chief aims use of the cyberspace in Republic Kazakhstan

Beginning from: Agency on Statisticss of the Republic of Kazakhstan. Available from www.stat.kz

As mentioned before by Chaffey ( 2002 ) we can see from the Figure.1 nowadayss scope of positions sing what is considered as E-commerce.

2.4 Current state of affairs of E-commerce in Kazakhstan and Korea

2.4.1 Korea

“Korea was an independent land under Chinese suzerainty for most of the past millenary. Following its triumph in the Russo-Japanese War in 1905, Japan occupied Korea ; five old ages later it officially annexed the full peninsula. After World War II, a democracy was set up in the southern half of the Korean Peninsula while a communist manner authorities was installed in the North. During the Korean War ( 1950-1953 ) , US and other UN forces intervened to support South Korea from North Korean onslaughts supported by the Chinese. An cease-fire was signed in 1953, dividing the peninsula along a demilitarized zone at about 38th analogues. Thereafter, South Korea achieved rapid economic growing with per capita income lifting to approximately 14 times the degree of North Korea.” ( Internet World Stats, 2010 Available from: hypertext transfer protocol: //www.internetworldstats.com/asia/kr.htm ) .

In Table.3 Internet Usage Statistics is 34,820,000 Internet users as of Sept/08, 70 % of the population, harmonizing to NIDA. Latest population Estimate: 49,232,844 populations for 2008, harmonizing to US Census Bureau. Gross National Income: GNI Per capita is ( palatopharyngoplasty ) US $ 17, 690 ( ‘06 ) harmonizing to World Bank. Country Area: 99,268 sq.km. Population denseness is 510 individuals per sq.km.

2.4.3 Internet Use Status

Harmonizing to the 2008 study by Korean Communications Commission and National Internet Development Agency, Korea ‘s Internet users spend an norm of 13, 7 hours per hebdomad, in which 69.2 % more than half are utilizing the Internet for an norm of more than 7 hours per hebdomad. 98.5 % of the topographic points for utilizing the Internet is surveyed as “home” , followed by 39,4 % A at office, 18.7 % at no certain topographic points ( including wireless entree ) , 13.9 % at installation for public entree ( Internet coffeehouse and game nines ) and 17.1 % at “school” ( Figure.1, Table.3 )

2.4.4 E-commerce in Korea

E-commerce represents on-line concern minutess performed electronically by concern topics utilizing information and communicating engineering and the Internet. It besides represents the related activities of concern topics to carry through such minutess. Major concern topics can be categorized as persons, corporations, and authoritiess. The idiom e-commerce is comparable to E-business every bit used interchangeably in the field. E-commerce may be regarded as a instead limited term, concentrating on the dealing itself as a agency of substituting goods or services. In contrast, e-business includes instead loosely the activity of constructing IT substructure and the application of information engineering to concern.

E-commerce standardisation is the procedure of arousing related criterions from e-commerce industry members. The roadmap for e-commerce standardisation is defined as supplying guidelines or waies for e-commerce standardisation. The purpose is to present guidelines for developing e-commerce engineerings to e-commerce related parties, such as private corporations, and to convey proper instructions for driving e-commerce standardisation consistently and expeditiously. To carry through such aims, the roadmap should incorporate the undermentioned stuffs:

  1. Outline of e-commerce, e-commerce criterions, and standardisation ;
  2. Categorization of e-commerce engineering ;
  3. Core elements of e-commerce engineering for standardisation ;
  4. Status analysis of nucleus engineerings ;
  5. Choice and timetable of to-be-standardized engineering points ;
  6. Information to undertaking from any old or future roadmaps

The Roadmap undertaking is comprised of three stages, from 2001 to 2003:

Phase I: Standards position analysis, overall criterions execution timetable, and 2001 timetable for selected time-sensitive precedence criterions.

Phase II: Status analysis of Phase I consequences, analysis, and categorization of e-commerce engineering, choice of single criterion points within each class, and overall 2002 standardisation timetables, all taken in strategic attack to e-commerce model criterions.

Phase III: Combination of the artefacts of Phase I and Phase II and consideration of alterations necessary to bring forth a concluding comprehensive version of an e-commerce criterions roadmap as a national guideline.

The e-business environment alterations quickly and continuously. Although the Forum finished the initial three-phase undertaking and produced a concluding version, it continues to update the contents of the version on a annual footing ( Jakobs, 2005 ) ???°?±?»??N†N? ?????¶???? ?????±?°????N‚N? ??Nˆ?? ?????»NZ??

2.4.4.1 The volume of E-commerce by type

The volume of e-commerce in Korea reached KRW 516.514 trillion in 2007, which was an addition of KRW 102.930 trillion ( 24.9 % ) from 2006. The volume and proportion of each dealing type shows that B2B histories for 89.9 % of the full concerns with KRW 464.456 trillion, while B2G takes 7.1 % with KRW 36.801 trillion. B2C takes 2.0 % with KRW 10.226 trillion, and C2C takes 1.0 % with KRW 5.032 trillion. Compared to 2006, the dealing volumes have all increased: B2B by 26.8 % , B2G by 6.9 % and B2C by 12.0 % and C2C by 31.5 % .

B2B: The entire B2B e-Commerce dealing volume in 2007 reached KRW 464.456 trillion, which increased 26.8 % ( KRW 98.264 trillion ) from KRW 366.191 trillion in 2006. Of the B2B minutess, buyer-led minutess increased by 21.9 % to KRW 321.058 trillion and seller-led minutess increased by 38.3 % to KRW 119.246 trillion. Broker-led minutess besides increased by 45.2 % to KRW 24.152 trillion. The proportions of seller-led and broker-led minutess both increased by 2.2 % P and 0.7 % P to 25.7 % and 5.2 % severally. However, buyer-led dealing showed a lessening by 2.8 % P to 69.1 % from 71.9 % of the old twelvemonth.

B2G: The 2007 B2G e-Commerce volume of authorities organic structures such as cardinal administrative organisations, local authoritiess, and offices of instruction accounted for KRW 36.801 trillion, which increased 6.9 % from KRW 34.435 trillion in the old twelvemonth. Of this sum, the building contract volume has increased 14.4 % ( KRW 2.166 trillion ) , and the purchase volume of goods and services has increased 1.0 % ( KRW 200 billion ) from 2006.

B2C/C2C: The B2C e-Commerce dealing in 2007 reached KRW 10.226 trillion after increasing 12.0 % from 2006, and the C2C dealing increased 31.5 % to KRW 5.318 trillion.

The dealing volume through online shopping promenades in 2007 has increased by 17.1 % ( KRW 2.306 trillion ) from KRW 13.460 trillion in 2006 to KRW 15.766 trillion. Of this sum, B2C dealing takes the largest part with 64.9 % ( KRW 10.226 trillion ) , 68 followed by C2C 31.9 % ( KRW 5.032 trillion ) and B2B 3.2 % ( KRW 508 billion ) ( Informatization White Paper, 2008: 33-35 ) Informatization White Paper ( 2008 ) .

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2.5 Kazakhstan

“The current independent province of Kazakhstan declared in 1991.It has population of 15. 4 million people with a land mass of 2.7 million square kilometres. The GNI per capita was 1860 Euro in 2005, harmonizing to the World Bank. Kazakhstan is the constitutional democracy with a President and bicameral legislative assembly. The state consists of 14 states and 3 municipal districts.” ( McNamee, 2006 ) Harmonizing to independent research company ICT-Marketing ( 2010 ) held its one-year survey of internet audience in Kazakhstan. The consequences shown that for 2009 figure of internet users were 3.16 million people, or 19.8 % of population. Furthermore 80 % of cyberspace users are utilizing ADSL connexion.

As it stated by ESCAP: “In 2000, there were first Kazakhstan online stores. The on-line stores conduct the retail trade in consumer goods. Their measure is increased with each month. Priority undertaking is the connexion of Kazakhstan to the international system of e-trade. Through this system, it is possible to unit involvements of the clients ( consumers of the goods and services ) and trade organisations of the assorted states. Now there are following systems of information interaction between the topics of economic activity: Inter house – business-to-business, intercompany, consumer – business-to-consumer, governmental – government-to-citizens, stamp – business-to-government, and auction – consumer-to-consumer.” ( Economic and Social Commission for Asia and the Pacific, 2002 )

2.5.1 ICT Infrastructure

The low Internet incursion rate is chiefly due to the deficiency of competition and of modern equipment in the telecommunications sector. In order to go on the promising growing in footings of Internet entree, the authorities has run a plan for the development of the telecommunications sector in 2005. The plan includes a phased liberalisation of telecommunications market to accomplish a competitory environment by leting new operators to come in the market. In add-on the telecommunications substructure is being modernized by utilizing state-of-the-art engineerings such as fiberoptic overseas telegrams.

In implementing the plan for development of the telecommunications sector, handiness to the Internet will be improved particularly in distant countries. At the same clip, increased bandwidth and low-cost rates for Internet entree will lend to better the quality and increasing the usage of the Internet in the concern sector every bit good as in private families.

2.6 E-commerce in Kazakhstan

2.6.1 Current state of affairs

“Kazakhstan, as the participant of planetary procedures of development of e-commerce, aspires to busy the appropriate topographic point in this market. The state has favourable geographical location for theodolite of flows of stuffs, power, human and information between Europe and Asia. It is the footing for successful development of e-commerce in Kazakhstan. Another footing for development of e-commerce is desire to better the informational telecommunication network.” ( Economic and societal committee for Asia and the Pacific, 2002 )

“Today in Kazakhstan, there is a sufficient measure of the companies using for a rank aˆ•the provider of the determinations of e-business. These companies offer assorted bundles of the determinations for development of ain concern in online.” ( Economic and societal committee for Asia and the Pacific, 2002 )

Harmonizing to independent research company ICT-Marketing ( 2010 ) held its one-year survey of internet audience in Kazakhstan. The consequences shown that for 2009 figure of internet users were 3, 16 million people, or 19, 8 % of population. Furthermore 80 % of cyberspace users are utilizing ADSL connexion.

2.6.2 Existing issues in Kazakhstan

“The basic grounds of the slowed down rate of development of e-commerce in Kazakhstan are: deficient measure of the participants of e-trade, absence of the Torahs, which adjust the relation to the participants of e-commerce, safety job for the information, which is transferred through the Internet, deficient protection of the rights of the consumers in the purchase of the goods and services in the Internet.” ( Electronic and Social Commission for Asia and the Pacific, 2002 )

In add-on from 2003 twelvemonth “ E-commerce Center ” has been worked on Kazakhstan market. The ground for making the company was the authorities ordinance of Republic of Kazakhstan of December 13, 2003 a„- 1262 “ About some issues of Public Procurement Agency of Republic of Kazakhstan ” , as a consequence Republican State Public Enterprise “ E-commerce Center ” of Financial Control and Public Procurement of Ministry of Finance of Republic of Kazakhstan was created. In 2007 E-commerce centre joined the “ National Scientific and Technological Holding ” Samgau “ as a subordinate company and was reorganized into Ltd “ E-commerce Center ” . Nowadays, successful concern is looking for new ways of development, and to pull clients and spouses worldwide. Internet and commercialism have become an built-in portion of each other, making the construct of e-commerce. The chief activities Ltd. “ E-Commerce Center ” are: Development, execution and support of package and information systems in public procurance ; Maintenance of the information system of electronic public procurance ; Training of staff of organisations – participants in the procedure of public procurance, including preparation in the system of electronic public procurance ; Organizing seminars, conferences in the field of public procurance ; Participate in the development of legal and regulative model for electronic public procurance ; Technical and system services for computing machine and communications equipment in the field of electronic public procurance ; Research in the field of electronic commercialism. ( E-commerce centre, 2010 ) Beginning: ( hypertext transfer protocol: //www.ecc.kz/ ) .

2.6.3 How the market of Kazakhstan is ready to travel to e-commerce?

The market of Kazakhstan is ready to travel to electronic commercialism. The province, making electronic trading platforms and trade good exchanges, in peculiar, stimulates the development of trade, making a meeting topographic point for the topics of trading activity without holding to particular demands. The chief nonsubjective – the decision of an increasing figure of gross revenues minutess. In making so, the legal ordinance on trading floors and trade good exchanges, carried out the internal regulations and ordinances outside the province fiscal control and inadvertence. The constitution in the past twelvemonth, a portal of electronic public procurance www.goszakup.kz, helped do the first measure the passage of Kazakhstan to the electronic trading and commercialism at the province degree.

To supply chances for all want to do commercial minutess in electronic signifier, must foremost set up an equal universe category development and effectual in our state ‘s Torahs. First stairss in this way have already been taken. However, to day of the month there are still jobs associated with non deciding the statute law in the field of electronic digital signature, the job of the debut of electronic money and the deficiency of literacy in information engineering.

Should be established and effectual substructure for minutess and contracts in electronic signifier. And from a practical point of position, a important constituent of the substructure of e-procurement systems or electronic trading today is a public procurance portal. We must besides retrieve that the development of electronic commercialism to further worsening the job of privateness, every bit good as the usage info comm. engineering has greatly facilitated the free aggregation of personal informations and their synthesis of a assortment of beginnings available in electronic webs.

E-commerce, including public procurance, runing information, which is normally called A«private nature of informationA» . And this is a really all right topographic point in a legal proviso where the handiness of criterions to guarantee the cardinal rights and freedoms of citizens, is the general ambiance of common trust and regard, and, finally, the success or failure of development of the full e-commerce. It should be noted that the construct of public procurance is non smooth and fast. Nevertheless, a figure of late issued ordinances on electronic commercialism and authorities procurance systems show a high grade of involvement on the portion of the province and society to the job. Behavior of electronic procurance is considered one of the basic public services and is one index of advancement towards the electronic province. To day of the month, Kazakhstan set up e-government portal. Continues to develop electronic public procurance portal, are going more and more usage of electronic stores. In any future purchases from authorities procurance, and stoping with the usual purchase of goods and services to citizens, it will be possible to implement in electronic signifier ( www.profit.kz ) .

In Table.6 shown about ICT substructure in Republic of Korea and Kazakhstan, which was reviewed before.

ICT Infrastructure

Korea

Kazakhstan

Internet Use: 37,475,800 Internet Users, 77.3 % of the population

Internet: 12.2million endorsers, 77 % of entire Households.

Access is distributing rapidly

Doubled their exports of telecommunication equipment between 2000- 2003

A penetrationA rate of 65.7 %

In 2003 the Republic of Korea had 26.7 million Personal computer ‘s

High per centums of Internet entree by endeavors ( 94 % )

Largest proportions of online purchases, of concerns with Internet ( 45.5 % )

Enterprises use an intranet ( 35.2 % )

Mobile phones: 36.58 million, 76 % of population

Innovativeness in merchandises and services in South Korea ( 18th )

Internet Use: 3,160,000 Internet Users, 19.8 % of the population

Internet incursion rate – 8.5 %

E-Readiness ( 3.2- 2007 out of 10 )

80 % of Internet entree utilizing ADSL with connexion velocity get downing from 128 to 1024 Kbps

High Mobile phone incursion growing between 2003 and 2004

Internet entree awards starts from

Megaline Start-A 1930 Tenge ( 13 $ USD per month, speed 256-1024 Kbps )

Megaline Turbo Plus- 5 845 Tenge ( 40 $ USD per month, speed 1GB-8GB Kbps )

Table.6ICT substructure in Republic of Korea and Kazakhstan

2.7 Different theoretical account of measuring e-commerce

2.7.1 DeLone and McLean Model

DeLone and McLean Model of Information System Success ( 1992 ) , IS Success ( 2003 ) , Measuring e-commerce Success ( 2004 )

In order to supply a general and comprehensive definition of IS success that covers different positions of measuring information systems, DeLone and McLean reviewed the bing definitions of IS success and their corresponding steps, and classified them into six major classs. Therefore, they created a multidimensional measurement theoretical account with mutualities between the different success classs DeLone and McLean ( 1992 ) . Motivated by DeLone and McLean ‘s call for farther development and proof of their theoretical account, many research workers have attempted to widen or re-specify the original theoretical account. Ten old ages after the publication of their first theoretical account and based on the rating of the many parts to it, DeLone and McLean ( 2004 ) proposed an updated IS Success theoretical account.

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“The updated theoretical account consists of six interconnected dimensions of IS Success: information, system and service quality, ( purpose to ) usage, user satisfaction, and net benefits. The pointers demonstrate proposed associations between the success dimensions.” ( Jang, 2010 )

“The IS Success Model of DeLone and McLean ( 1992 ) provided a common model to measure IS effectiveness/success in information system research. Between 1993 and mid – 1999, the IS Success Model of DeLone and McLean was cited by 144 refereed diary articles and 15 documents from the International Conference on Information Systems ( ICIS ) .” ( Saha, 2008 ) .

DeLone and McLean ( 1992 ) , prompted to develop a more incorporate position of the constructs of success. This resulted in the IS Success Model ( Figure.2 ) , which is described as a “taxonomy of IS success measures” with a figure of inter-relationships that are drawn together in a theoretical account of six major “dimensions or classs of IS Success”

DeLone and McLean ‘s IS Success Model ( 1992 ) have 6 spheres, system quality, information quality, usage, user satisfaction, single impact, organisation impact, so in Table.3 sum-up of mensural points for the DeLone and McLean Model.

An reading of the theoretical account is as follows: “System Quality and Information Quality singularly and jointly impact both Use and User Satisfaction” . Additionally, the sum of Use can impact the grade of User Satisfaction. Use and User Satisfaction are direct ante decent of Individual Impact, and this Impact on single public presentation should finally hold some organisation impact.” ( DeLone and McLean, 1992 )

“The Updated DeLone and McLean information system success theoretical account ( Figure.3 ) can be adapted to the measuring challenges of the new e-commerce world.” ( Saha, 2008 ) This theoretical account is based on the updated DeLone and Mclean ( 2003 ) original success theoretical account. Important alterations to the initial theoretical account included:

The quality concept of IS Success was extended to include Service Quality.

The concept Systems Use was found to be multi-dimensional, e.g. , compulsory versus voluntary usage. As a consequence, Intention to Use was added to the theoretical account, to distinguish between Systems Use as a behaviour as opposed to Intention to Use as an attitude.

The concepts of Individual Impact and Organizational Impact were collapsed into a individual dimension named Net Benefits. DeLone and McLean ( 2003 ) .

In add-on to the betterments described above, the writers besides suggest that the updated theoretical account provides “a penurious model to form the assorted success prosodies identified in the IS and e-commerce literature” DeLone and McLean ( 2003 )

Beginning: Measuring E-commerce success: Using the DeLone and McLean Information Systems Success Model, 2004

DeLone and Mclean Information Systems Success Model can be used to the measuring challenges of the new e-commerce universe. The updated theoretical account ( Figure.5 ) consists of six interconnected dimensions of information systems success: System quality, Information quality, Service quality, Use, User satisfaction, Net Benefits.

“The six dimensions of the DeLone and McLean IS Success Model can be applied to the e-commerce environment as follows:

1. System Quality, in the Internet environment, measures the coveted features of an e-commerce system. Usability, handiness, dependability, adaptability, and response clip ( e.g. , download clip ) are illustrations of qualities that are valued by users of an e-commerce system.

2. Information Quality captures the e-commerce content issue. Web content should be personalized, complete, relevant, easy to understand, and procure if prospective purchasers or providers are to originate minutess via the Internet and return to a site on a regular footing.

3. Service Quality, the overall support delivered by the service supplier, applies regardless of whether the support is delivered by the IS Department or a new organisational unit or is outsourced to an Internet service supplier. This dimension is more of import in an e-commerce environment than of all time earlier, because the users are now clients instead than employees, and hence, hapless user support will interpret into lost clients and lost gross revenues.

4. Use, steps everything from a visit to Web site and pilotage within the site to information retrieval and executing of a dealing

5. User Satisfaction is an of import agencies of mensurating client ‘s sentiments of an e-commerce system and should cover the full client experience rhythm from information retrieval through purchase, payment, reception, and service.

6. Net Benefits, are the most of import steps, because they capture the balance of the positive and negative impacts of e-commerce on clients, providers, employees, organisations, markets, industries, economic systems, and even society as a whole.” ( DeLone and McLean, 2004 )

“Finally, e-commerce surveies should include net benefits steps and non be content to roll up merely foster steps, such as Web Site hits ( i.e. , usage ) . Such benefits can be measured on at least four degrees: person, group, organisational, and industry. These steps become most utile, nevertheless, when fitted into an overall construction or model – a model like the one provided by the DeLone and McLean Information Systems Success Models.” ( DeLone and McLean,2004 )

Beginning: Measuring E-commerce success: Using the DeLone and McLean Information Systems Success Model, 2004

2.7.2 Rational behind utilizing DeLone and McLean Success E-commerce Model

One of the aims of this research paper is to place the success factors of e-commerce. “A reappraisal of articles on e-commerce and electronic informations interchange ( EDI ) in recent academic and trade diaries ( 1992-2002 ) yielded many suggested steps of e-commerce success. IS and selling diaries were included in the hunt for e-commerce success prosodies. Most of the articles were conceptual in nature, but some were empirical and, hence, attempted to operationalize e-commerce success metrics.” ( DeLone and McLean, 2004 )

2.7.3 Current research of other research workers

As one of the aims of this research is to measure and look into the enhancement factors of Kazakhstan e-commerce, this combination make the survey unique, as old research in this field merely supply a speedy expression with no deepness focal point on the Kazakhstan E-commerce. There were some surveies researching the failing and strength of the Kazakhstan E-commerce, and other surveies independently investigate the critical factors in E-commerce best patterns, nevertheless no 1 tried to mensurate utilizing E-commerce Success theoretical account. Furthermore some of the research paper utilizing statistical analysis, harmonizing to Griffith ( 2007 ) “statistical analysis is like a cloaca. What you get out of it mostly depends on what you put into it. There are a few researches about the measuring of e-commerce success.”

2.7.3.1 Chang Liu, Kirk P. Arnett Model of E-commerce Web site success, 2000

“Websites are being widely deployed commercially. As the widespread usage and dependence on Web engineering additions, so does the demand to entree factors associated with the Website success. The aim is to research these factors in the context of electronic commercialism ( EC ) .” ( Liu, 2000 ) “Webmasters from Fortune 1000 companies were used as the mark group for a study. Four factors that are critical to Website success in EC were identified:

  1. Information and service quality
  2. System Use
  3. Gaiety
  4. System design quality.” ( Capece, 2006 )

The characters are defined by Liu and Arnett ( 2000 ) in more in item as follows:

“Information Quality.The following variables for mensurating information quality: truth, seasonableness, relevancy ; flexible information presentation ; customized information presentation ; monetary value information ; product/service comparison, product/service distinction, complete product/service description ; perceived information quality on product/service ; fulfilling ethical criterion ; and support concern aims.

Learning capability.Five variables were used to mensurate larning capableness: good organized hyperlink, aid map ; customized hunt engine ; synergistic map between clients and concerns, and synergistic map among clients.

Playfulness.This is a five-item instrument adapted from the measuring used by Badin, Darden, and Grifvin. The variables are: enjoyment, exhilaration, feeling of engagement, escape, and charming.

System quality.This was measured by six variables: rapid entree ( treating velocity ) , speedy mistake recovery, right operation and calculation ; security ; balanced payment method between security and easiness of usage ; and coordination to back up all functional countries.

System use.The measuring variables of system usage are: customer‘s control of a dealing procedure, easiness of usage, assurance, tracking order position, and privateness.

Service quality.Quick reactivity, confidence, dependability, empathy, and follow-up service are used to mensurate service quality. These measurings are good established in marketing literature.” ( Liu and Arnett, 2000 )

“Finally Web site success in the context of EC is related to four major factors: quality of information and service, system usage, gaiety, and system design quality.” ( Liu et al,2000 )

2.7.3.2 Alemayehu Molla Model of E-commerce success in developing states

Molla ( 2004 ) “explores the organisational and environmental “e-readiness” variables that might impact e-commerce success in developing states. Datas are extracted from a study of concern organisations conducted in South Africa. Cluster, discriminate map and canonical correlativity analysis are used to analyse the information. The consequences indicate that- reverse to the conventionally recognized perceptual experience that treats environmental factors as major barriers to e-commerce in developing countries- house specific variables appear to be the cardinal drivers in distinguishing comparatively successful from less successful businesses.” ( Molla, 2004 )

“In specific, the technological resources of concerns, the administration they put in topographic point and their committedness look to be playing important functions in impacting successful development of e-commerce and its benefits in footings of communications betterment, cost economy and market public presentation. The deduction is that concerns in developing states to accomplish greater e-commerce success. However, because any sustained advantage is context-specific ( that is, there are no cosmopolitan beginnings of advantages ) the importance of other organisational and environmental contextual variables should non be ignored.” ( Molla, 2004 )

2.7.3.3 Giovanni Gianni and Fiorenzo Franceschini Model of E-Commerce Web service

E-commerce Web Service Model ( Figure.9 ) “to back up the direction of a high quality e-commerce service. The attack focuses on the service quality facets related to client relationship direction ( CRM ) . Knowing the single features of a client, it is possible to provide a personalized a high quality service. A cleavage theoretical account, based on the “relationship evolution” between users and Website, is developed. The method permits the proviso of a specific service direction for each user section. The characters are defined in more in item as follows:

Occasional customers.With this name, we consider those people that make merely one order, and do non keep a uninterrupted duologue with the Web site organisation. We associate them with a default timeserving behaviour. Customers do non attest a existent involvement to construct a long-run relationship with the Web site.

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Satisfied customers.They make a alone order, but unlike the old 1s, they interact with the site organisation, demoing involvement and handiness to prosecute in a long-run relationship.” ( Gianni and Franceschini, 2003 ) .

“Confidence customers.Those people maintain frequent contacts with the Web site, holding bought merely one merchandise.

Fidelity behavior customers.Those people reconfirm their Web shop penchant with farther purchases, non prosecuting in any site communicating.

Fond customers.Those are people who make many orders, corroborating a strong fondness to the Web service. They are characterized by confirmed duologue handiness.

Loyal customers.They represent the most desirable of the hierarchal cleavage, a kind of aˆ•ideal client group. The site-manager focal points all his/her attempts on enlarging this segment.” ( Giovanni GiannA±` and Fiorenzo Franceschini, 2003 )

Giovanni GiannA±` and Fiorenzo Franceschini ( 2003 ) “introduces a new theoretical account to back up the relationship direction of a quality e-commerce Web service. The advantage of practical minutess is the ability to follow a big sum of users without losing the necessary degree of item. The chief freshness of the method is the proposal of a new client cognition database. Monitoring and commanding the client profile development allows companies to specify a structured scheme to pull off client relationships. The theoretical account tends to increase the client involvement for an overall dealing experience, since the progressive interactions create a sense of personalization and cooperation between clients and Web site manager.”

2.7.3.4 Critical Success factors of E-commerce for SME ‘s, Judith Jeffcoate, Caroline Chappell, Sylvie Feindt

“Describes how little concerns involved in e-commerce may benchmark their public presentation against a figure of critical success factors ( Table 11 ) . The proposed attack is based on a series of interviews carried out amongst small-to-medium-sized endeavors ( SMEs ) whose activities were judged to stand for best pattern in e-commerce.” ( Jeffcoate et Al, 2002 ) “The chief intent of the analysis was to place a set of elements that support each CSF. These elements form the footing for a set of guidelines for best pattern. Companies were so classified harmonizing to their growing potency and their generic scheme, based on their replies to the telephone interviews. Of the 46 companies, 27 were retained as best pattern instances, stand foring successful e-commerce ventures from a assortment of concern sectors and geographic locations. In the concluding stage of the analysis, the sets of CSF elements were related to specific company profiles, based on attitude to growing and scheme adopted.” ( Jeffcoate et Al, 2002 )

Finally non all of the research workers have attempted to review or modify the DeLone and McLean IS Success Model. Some have developed and proposed surrogate models for mensurating E-commerce success. Seddon and Kiew ( 1996 ) , Molla and Licker ( 2001 ) , Rai et Al ( 2002 ) , Livari ( 2005 ) proposed their ain e-commerce success prosodies, nevertheless some of them utilizing excessively many prosodies for mensurating ( Seddon, 1997 etc. ) which is difficult to implement and non efficient. Other can be applied merely in specific country in the instance of E-commerce is E-commerce theoretical account like B2B and B2C etc.

Furthermore as stated by DeLone and McLean ( 2004 ) : “most of the success measures found in e-commerce articles are a step already used in IS research. The major differences are context and focal point. In the e-commerce environment, the system users are clients and providers, and the intent of the system is chiefly the executing of concern minutess. Therefore, the E-commerce context does non necessitate a new set of success prosodies. The updated DeLone and McLean theoretical account can function as an appropriate model for forming e-commerce success metrics.” ( DeLone and McLean, 2004 )

In add-on this theoretical account informed a big figure of surveies and has been updated as the DeLone and McLean IS Success theoretical account ( 2003 ) to include the variables “service quality” and “net benefits” DeLone and McLean ( 2003 ) besides demonstrated the possibility of accommodating their success IS success theoretical account to the e-commerce environment. “It is argued that, as the DeLone and McLean Model is based on communications theory, it is extremely suited to mensurating the IS and communications phenomenon that is the internet.” ( Lachika, 2008 ) This theoretical account is derived from a good accepted and tested theoretical account of information systems success. Molla and Licker ( 2001 ) ; Seddon and Kiew ( 1994 ) and is argued to be appropriate to the communications and commercialism procedure common to e-commerce systems.

The six success dimensions of DeLone and McLean IS Success Model can be applied to the e-commerce environment as follows:

System Quality, in the cyberspace environment, measures the coveted features of an e-commerce system. Usability, handiness, dependability, adaptability and fast response clip ( e.g. , download clip ) are illustrations of qualities that are valued by users of an e-commerce system. DeLone and McLean ( 2003 ) , and besides as suggested by DeLone and McLean all six dimensions can non be changed, nevertheless features of each can be added for measuring, hence this theoretical account can easy implemented. Harmonizing to this statement adding one prosodies like “customization” will add value, which is besides recommended by Palmer ( 2002 ) . Furthermore as defined by DeLone and McLean ( 2004 ) “when clients are the users, and customers-purchase determinations are the nonsubjective, new, dynamic personalization steps are of import because of the mass customization developments happening in gross revenues and marketing.”

Giving illustration for clear uping in the instance of web site. Customer wants to take circuit from Travel bureau by come ining to their web site ; nevertheless he can non custom-make his circuit ( yearss, hotel, flight etc ) .The advantages of customization is increased gross revenues volume and market portion. Furthermore, this allowed the company to have of import market information about client demands. Sievanen ( 2002 ) .

Information Quality

Captures the e-commerce content issue. Web content should be personalized, complete, relevant, easy to understand, and procure if prospective purchasers or providers are to originate minutess via the Internet and return to a site on a regular footing Shane ( 2006 ) .

Service Quality

Liu and Arnett identified service quality as an of import step of Website success. In their empirical survey, service quality was measured as speedy reactivity, confidence, empathy, and following-up service. Service quality can besides be measured by the effectivity of online support capablenesss, such as replies to often asked inquiries ( FAQ ) , customized site intelligence, and order trailing. None of the other e-commerce articles reviewed for this paper addressed service quality ( i.e. , support ) .It is necessary to look to the service- quality research watercourse for success steps that make sense in the e-commerce environment- steps such as reactivity and proficient competency. DeLone and McLean ( 2004 )

Additionally this dimension is more of import in an e-commerce environment than of all time earlier, because the users are now clients instead than employees, and hence, hapless user support will interpret into lost clients and lost gross revenues. DeLone and McLean ( 2003 )

Use steps everything from a visit to a Web site and pilotage within the site to information retrieval and executing of a dealing. A turning figure of surveies ( Hennemann, 1999 ; Nielsen, 1999 ) are besides concentrating on the serviceability facet of e-commerce systems while others ( Han and Noh, 1999, Jones & A ; Kayworth, 1999 ) focal point on measuring the usage degree and the satisfaction of users and clients in interacting with e-commerce systems. Molla and Licker ( 2001 )

User Satisfaction is an of import agencies of mensurating client sentiments of an e-commerce system should cover the full client experience rhythm from information retrieval through purchase, payment, reception, and service Shane ( 2006 ) .

Net benefits are the most of import success steps, because they capture the balance of the positive and negative impacts of e-commerce on clients, providers, employees, organisations, markets, industries, economic systems and even society as a whole as stated by Shane ( 2006 ) .

FurthermoreA as statedA by DeLone and McLean ( 2003 ) “Net Benefits” success steps are most of import, but they can non be analyzed and understood without “system quality” and “information quality” measurings. For illustration, within the e-commerce environment, the impact of a Web-site design on client purchases can non be to the full understood without an rating of the serviceability of the Website and the relevancy for buying determinations of the information that is provided by to the prospective buyer.

2.7.4 Decision

“The Republic of Kazakhstan, as the participant of planetary procedures of development of e-commerce, aspires to busy the appropriate topographic point in this market. The state has favourable geographical location for theodolite of flows of stuffs, power, human and information between Europe and Asia.” ( Economic and Social committee for Asia and the Pacific, 2002 ) It is the footing for successful development of E-commerce in Kazakhstan. Harmonizing to International Monetary Fund, Kazakhstan is coming second after Russia by nominal GDP in post-soviet brotherhood. Another footing for development of e-commerce is desire to better the informational telecommunication web.

Additionally harmonizing to the information of the national cyberspace award bureau Award.kz, there are about 50 web sites executing electronic commercialism services in the state. Further by measuring the E-commerce in Kazakhstan we will be able happen out what are the bing issues.

Second, at the same clip as one of the aims of this research paper is to happen out proper tool for measuring E-commerce success. The DeLone and McLean ( 2004 ) E-commerce success theoretical account was used as a base. As defined by DeLone and McLean ( 2004 ) “Information engineering and the Internet have had a dramatic consequence on concern operations. Companies are doing big investings in e-commerce applications, nevertheless are difficult pressed to measure the success of their e-commerce systems.”

All in all, hence in this literature reappraisal foremost the writer tried to discourse the current state of affairs in Kazakhstan. Next discuss the importance and positions of e-commerce. After that seeking to happen what are the other tools for measuring E-commerce success and why DeLone and McLean chosen as a base. The writer ‘s purpose of this research is to supply a conceptual model of mensurating E-commerce success in Kazakhstan utilizing DeLone and Mclean E-commerce success theoretical account.