The Role of Electronic Commerce in the Global Business Environments

Abstract

This chapter presents the role of electronic commerce (e-commerce) in the global business environments, thus describing the overview of e-commerce, the strategy of e-commerce, the applications of e-commerce, the barriers to e-commerce adoption, the value chain of e-commerce, and the benefits of e-commerce. E-commerce is one of the most recognized forms of electronic technology applied to businesses. The effectiveness of e-commerce is significant for modern organizations that seek to serve suppliers and customers, improve business performance, foster competitiveness, and acquire routine success in global business. Thus, it is necessary for modern organizations to explore their e-commerce applications, expand a strategic plan to analyze their feasible advancements, and directly respond to e-commerce needs of customers. Applying e-commerce in the global business environments will significantly enhance organizational performance and achieve business goals in the digital age.

Key Terms in this Chapter

Competitive advantage: A superiority gained by an organization when it can provide the same value as its competitors.

Value Chain: The interlinked value-adding activities that convert inputs into outputs and help create competitive advantage.

Electronic Commerce: The business conducted through the use of computers or other electronic appliances without the exchange of paper-based documents.

Emerging Markets: The new market structures related to digitalization, deregulation, and globalization.

Business: An economic system where goods and services are exchanged for money.

Internet: A process of connecting a computer to any other computer anywhere in the world through routers and servers.

Information Technology: A set of tools, processes, and methodologies and associated equipment employed to collect, process, and present information.

Strategy: A plan chosen to bring about a desired future such as the achievement of a business goal.