THE IMPACT OF E-COMMERCE ON THE EMERGING MARKET PERFORMANCE

CHAPTER ONE

INTRODUCTION

Background to the study: Over the last decade the world has become more digitized and mobile. This digitization brought about by the advancement in technology has affected all sectors of the economy which online shopping platform sector is not an exception. As a result of this, business organizations world over have sought for ways of improving their business operations through improved technologies in order to serve their customers better. Consequently, the advent of Electronic commerce has assisted business organisations in achieving this desired goal. E- Commerce refers to online transactions- buying and selling of goods and/or services over electronic medium especially the internet (Yeo & Huang 2003). It consists of all commercial transactions mediated by digital technologies such as landline telephone, electronic mails, mobile-phones and internet which takes place over electronic networks.

Electronic commerce is reshaping many aspects of the business and the social life. Companies need to  adapt their strategies to  the  new realities if they  want to be competitive in the marketplace. E-commerce is a new way of conducting business and its influence is increasing every year (Chong 2008). The term “e- commerce” is described by Chaffey (2009) as all electronically mediated transactions between the company and third party. At the  same time e- commerce not only provides the companies with a huge  amount  of information, increases the speed of the transactions and decreases costs,  but also reshapes their marketing strategies and practices (Dou & Chou 2002).

Stokes & Wilson (2006) also added that marketing difficulties of emerging online platforms like Jumia and Konga arise, either because of an inability to raise sufficient funds to properly create awareness of their platforms and products, or a lack of trust by customers due to internet fraud mishaps.

1.2 Statement of the Problem

Considering the constraints faced by the Nigerian emerging markets and the relevance of e- commerce services on business performance most especially in the aspect of consumer patronage, trust and performance, lots of study have been carried out on e-commerce and its implications. Donner & Donner and Escobari (2010) conducted studies majorly in African countries on e- commerce service usage, the findings from their studies revealed positive and significant relationship between e-commerce and market performance. In Nigeria, Okolo and Obidigbo (2014) examined the effect of e- commerce on the performance of companies in Nigeria and how its performance can be boosted, their study adopted survival, asset size and access to credit as a proxy to measure online company performance. Consequently, Okolo, Ani & Ofoegbu (2014) in their study made use of mobile penetration and internet penetration as their independent variable which the current study adopted but the study was conducted on economic growth. These studies have made tremendous contributions to the space of e-commerce. However to the knowledge of the researcher, little or no reference have been made to online stores. It is due to this gap in research, that this study is undertaken to investigate the impact of e-commerce on emerging online platforms in Nigeria, a case study of Konga Online stores. This study proves important as it sheds broader lights on the unique and  ever changing factors influencing the the emerging markets.

1.3 Objectives of study

1. To Identify the influence of e- commerce in the socioeconomic development of Nigeria.

2. To identify the various ways e- Commerce affects the demand for goods.

3. To analyse how e- Commerce affect cross-border transactions?

1.4 Research Questions

1. How does e-commerce influence socioeconomic development in Nigeria?

2. What are the various ways e- Commerce affects the demand for goods?

3. How does e- Commerce affect cross-border transactions?

1.5 Research Hypotheses

H0: E-commerce has no significant impact on emerging markets

Ha: E-commerce has significant impact on emerging market

H0: There is no significant relationship between e-commerce and emerging market

Ha2: There is a significant relationship between e-commerce and emerging market.

1.6 Scope of the Study

The research study makes use of primary and secondary source of data. It provides a conceptual and theoretical appraisal of the nature of e-commerce and the factors which determine firm’s performance.

All the data used for both the dependent and independent variables are collected during the survey. The research focuses on the emerging performance of Konga online store.

1.7 Significance of the Study

The significance of the study includes the following:

To contribute and add to the scanty literatures on effect of e- commerce on online marketing performance within the Nigerian context.

The work will be of immense contribution to Entrepreneurs, Telecom companies, banks and the Nigerian government to make friendly policies and create a safe haven for full adoption of e- commerce activities in Nigeria. This study will be of great importance to managers, business owners, as well as potential entrepreneur of small and medium scale organisations as it will enlighten them on the e- commerce services to adopt so as to improve their organisational performance.

1.8 Limitations of the Study

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, questionnaire and interview).

Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.