Ebusiness Adoption Model2

Draft

Richard Padilla
(270705)

eBusiness Adoption Models/Factors
Strategy and Business Systems Department
Portsmouth Business School
University of Portsmouth

Literature Review
Many factors affect the adoption and implementation of eBusiness, as uncertainties in economic globalization have shown that ICT and eBusiness areessential components towards the creation of a knowledge-based economy, and assuring competitive advantage. eBusiness has been characterized as a mechanism that can break down barriers of distance, as firms move into more distant markets without having to be physically there and, simultaneously, reduce the costs of buying and selling(Vlachos, Zeimpekis, Chondros, Psarrou, & Stragas, 2009).Developing eBusiness capability is an important undertaking, as it encompasses enabling sell-side, buy-side, and internal business processes (Zhu, Kraemer, & Xu, 2006). While eBusiness adoption seem to always revolve around the obstacles of security and confidentiality for SMEs, but as the market becomes increasingly competitive, sustaining competiveness and the resulting profitability willdepends less on the ability to raise prices, firms will need to compete on the basis of product innovation, higher quality, and faster response time, all of which must be delivered at lower cost attainable and simultaneously(Vlachos, et al., 2009).
There was plenty hype and hope of eBusiness development and adoption during the 1990s and early 2000s with eBusiness adoption being driven by a strongpro-innovation bias(Wu, Mahajan, & Balasubramanian, 2003). From theoretical and practical perspectives, it is interesting to study whether aspects of eBusiness adoption were driven more by normative pressures that had weaker implications for business performance(Wu, et al., 2003). Examining this issue at depth has focused on a process-level of eBusiness adoption and considers the entireprocess chain.
There is a belief that advancement of business in developing countries is driven by perceived potential of the Internet in reducing transaction costs by bypassing some if not all of the intermediary and facilitating linkages to the global supply chain(Molla & Licker, 2003). Proof is required to show that this has been tested and such advancement is proven as true even though theeffective use of eCommerce provides opportunities in international trade and facilitates growth and economic development.
An appreciation of eReadiness for eBusiness in developing countries needs to move beyond solely a national prospective and instead embrace a multi-level analysis through understanding the social, cultural and business philosophies. Further analysis may dictate that eReadinesswill be a critical factor that must be confronted by organizations including SMEs to ensure that their ability to absorb or implement ICT is forethought towards progression of eBusiness adoption. There is a limit of applicability and transferability of eCommerce models used by developed countries that has not necessarily transferred to developing countries. The successful transformation of abusiness will be cemented by identifying the relevant factors, through the development of a direct strategy and allocation of resources.
A reviewed journal article by (Wu, et al., 2003) called “An Analysis of E-Business Adoption and Its Impact on Business Performance” shows that the adoption of eBusiness is of a continuous nature in the sense that the extent of its adoption across businessprocesses may change with time (as opposed to, say, a hospital’s acquisition of a computerized axial tomography [CAT] scanner). Consistent with this view, we conceptualize e-business adoption intensity along dual-dimensions – the process domains within which eBusiness is adopted and the degree of implementation of eBusiness within specific process domains(Wu, et al., 2003). Further discussion enhance...