EFFECT OF INFORMATION SYSTEMS ON THE PERFORMANCE OF E-COMMERCE

1.1 Introduction

An information system consists of the information and communication technology (ICT) that a firm uses, and the technology people interact with in support of business processes. Information systems include ICT component but are not purely concerned with ICT, focusing instead on the end use of information technology. Information systems are also different from business processes. Information systems help to control the performance of business processes. It has connected the globe into one unit and enhanced the communication and exchanges of not only information but also of buying and selling of goods and services over the internet. Therefore E-commerce can be defined as the application of internet facility in the process of buying and selling of goods and services over short and long distances.

As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Research hypothesis and questions, Limitations of the Study and Definition of technical terms.

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1.2 Background of Study

The evolution of information system has evolved diverse means of doing business. Information system fundamental objective is to support the management, operations, and decision-making. E-commerce involves the use of technology such as the internet, fax, e-payment, money transfer systems, telephone, e-data inter-change in conducting the business of buying and selling of goods and services’-Ecommerce enhances direct access to overseas markets and fosters the globalization of commercial activities; It connects domestic and foreign companies and easily provides an easy means of doing business over the internet-commerce has led to the development of new ways of doing business. It facilitates the business transaction of investment, payments, purchasing, supply, research etc. over the internet. Electronic commerce consists of all commercial transaction that is concluded over an electronic medium and the internet. The potential of the internet to connect different parts of the world in market place using global technology and information exchanges exact a great and positive significant impact on the developing economies like Nigeria. E-commerce has enabled an overwhelming increase in the volume of trade and economic activities existing on-line. The total level of electronic commerce business transaction carried out over the internet currently within this period has been appreciative and growing at a rapid pace.

E-commerce extends beyond the use of electronics and commerce added together. It is a complete new way of doing things. An entirely new way of conducting business over a medium that has changed the old pattern of conducting business. E-commerce is conceived as far more about strategy and business management than about technology-commerce involving the use of the internet, if effectively utilized for development, can become an instruments for determining future sustainable economic growth The various aspect of e-commerce can be grouped into two parts.

E-merchandise: This involves the selling of goods and services using the electronic process and transferring goods through distribution channels, such as using the internet to shop for items as cloths, hardware, travel, book, flower groceries, tickets, music, or gifts.

E-finance: This consist of the application of technology including the internet to conduct transaction involving banking, insurance, financial service , use of debit cards, smartcards, telephone and internet and mortgages. The great flexibility of the internet has enhanced ecommerce, which has also influenced the traditional method of business management including all the facets of the business tradition which people are familiar with in the physical environment.

E-commerce entail implementing business through the use of modern communication tools such as: telephone, fax, e-payment, and the internet. E-commerce consists of not only a new technology but a new platform for international and home business and trade. However it is still evolving. It constitutes an essential, aspect of doing business in our contemporary society.

Therefore, in Nigeria where the research was carried out, the activities that was conducted is to know the Effect of Information Systems on the Performance of E-commerce.

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1.3 Statement of Problems

The advent of information system is mainly responsible to the rapid change of processes in conducting business in modern society. Commerce was previously understood primarily to the physical exchange of goods and services through trade and other ancillary services with much limitation over destination and time however the advent of information system has led to e-commerce which entails the application of internet facility in the process of buying and selling of goods and services over short and long distances. E-commerce involves the use of technology such as the internet, fax, e-payment, money transfer systems, telephone, e-data inter-change in conducting the business of buying and selling of goods and services’-Ecommerce enhances direct access to overseas markets and fosters the globalization of commercial activities;

However significant challenges exist in the process which include; Problem of consumer’s confusion and apprehension of the safety involved in doing business over the internet., Problem of risk associated in internet business as there exist a high level of cybercrimes which is being addressed in Nigeria; The consumers are physically unable to examine the product personally; The problem of Online Purchasing Security; The cost of maintenance of hardware and software of Website for the transaction of business activity is high; The customers often get stoked to the business website as any problem could lead to loss of customers and business.; The cost of Training of online business is high among others.

Therefore it is important that deficiencies are addressed in the process of e-commerce. Consequently the problem confronting the research is to determine the Effect of Information Systems on the performance of e-commerce

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1.4 Aim and Objectives of Study

The aim of the study is to determine the Effect of Information Systems on the performance of e-commerce. In achieving this aim, the following specific objectives were laid out as follows:

1. To examine the factors affecting the performance of E-commerce
2. To address the deficiencies in the process of e-commerce
3. To proffer solution to the above stated problems
4. To determine the positive meaningful relationship between Internet technology and e-commerce familiarity for customer.

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1.5 Research Questions

The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:

• What is information system and E-commerce?
• What is the Effect of Information Systems on the performance of E-commerce?
• Is there any positive meaningful relationship between Internet technology and e-commerce familiarity for customer?

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1.6 Research Hypothesis

In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.

• H0: The Effect of Information Systems on the performance of e-commerce is not significant
• H1: The Effect of Information Systems on the performance of e-commerce is significant

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1.7 Significance of Study

The study shall proffer fundamental information on the role and Effect of Information Systems on the performance of e-commerce. This study will be of immense benefit to other researchers who intend to know more on this study and can also be used by non-researchers to build more on their research work. This study contributes to knowledge and could serve as a guide for other study.

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1.8 Scope of Study

The study focuses on the Effect of Information Systems on the Performance of E-commerce in Nigeria.

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1.9 Limitations of the Study

During the course of this study, many things militated against its completion, some of which are:

1. Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
2. Research material: availability of research material is a major setback to the scope of the study.
3. Frequent power failure: This made the researcher append more money on fuel to ensure sustainable power.
4. Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet).

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1.10 Definition of Terms

Information System Defined: An information system consists of the information and communication technology (ICT) that a firm uses, and the technology people interact with in support of business processes. Information systems include ICT component but are not purely concerned with ICT, focusing instead on the end use of information technology.

e-Commerce Defined: E-commerce can be defined as the application of internet facility in the process of buying and selling of goods and services over short and long distances. E-commerce involves the use of technology such as the internet, fax, e-payment, money transfer systems, telephone, e-data inter-change in conducting the business of buying and selling of goods and services’-Ecommerce enhances direct access to overseas markets and fosters the globalization of commercial activities.

Merchant: A person or company involved in wholesale trade, especially one dealing with foreign countries or supplying goods to a particular trade.