ABSTRACT
This study has examined the
relevance of Information Technology on e-Business processes of SMEs, using
DirectXplanation.com Nigeria Limited as a case study, where the primary data
was obtained. The total sample size was 138 since 150 questionnaires were
administered and 138 were retrieved from the organization, the Basic research
design was survey method and questionnaire was used as a data instrument. The
research hypotheses were tested using Chi-square statistical (SPSS). The
analysis of the research hypotheses
indicated the following: that IT plays an important role in the increase
of productivity and economic activities and IT does not only help in increasing
productivity but also quality and make the way business operate less
complicated, time saving, and disclose the new trends of business and how
business are supposed to address changes, IT has a great influence on different
business processes, and investment on IT has improved efficiently and
effectively on e-business.
TABLE
OF CONTENTS
TITLE PAGES
Certification ii
Dedication iii
Acknowledgement iv
Abstract v
Table of Contents vi
CHAPTER ONE: INTRODUCTION
1.1 Background
to the Study 1
1.2 Statement
of Problem 4
1.3 Aim
and Objectives of the Study 5
1.4 Relevant Research Questions 5
1.5 Relevant
Research Hypotheses 6
1.6 Significance of the Study 6
1.7 Scope of the Study 6
1.8 Definition of Terms 6
CHAPTER
TWO: LITERATURE REVIEW
2.0
Preamble 8
2.1 Historical Background to
Directxplanation.Com Nigeria Limited 8
(DXC)
2.2 Historical Background to the Studied Organization 10
2.3 Theoretical Framework of the Study 22
2.4 Meaning of e-Business 24
2.5 e-Commerce 23
2.6 Types of e-Business Models 30
CHAPTER THREE: RESEARCH
METHODOLOGY
3.1 Introduction 34
3.2 Research Design 34
3.3 Population of the Study 34
3.4
Sampling, Procedure and Sample Size 35
3.5
Data Collection Instrument and Validation 35
3.6
Method of Data Analysis 36
3.7 Limitation of The Methodology 36
CHAPTER
FOUR: PRESENTATION OF DATA AND ANALYSIS
4.1 Preamble 37
4.2 Frequency
Distribution 37
4.3 Item Analysis Based On Research Questions 39
4.4 Test of Hypotheses 45
4.5 Discussion of Findings 48
CHAPTER FIVE: SUMMARY,
CONCLUSION AND RECOMMENDATION
5.1 Summary of Findings 50
5.2
Conclusions 50
5.3 Recommendations 51
References 53
Appendix 62
CHAPTER
ONE
INTRODUCTION
1.1 BACKGROUND
TO THE STUDY
The modern economic environment which is dominated by globalization,
hyper-competition, knowledge and information revolution have revolutionized the
way business is conducted (Pavic et al., 2007). This new technological epoch is
apparent through the intensified investment in computer-processing and data
preparation appliance in the manufacturing and service industry and
telecommunications infrastructure, and its widespread usage in government
agencies, educational organizations, and, more recently, in the households.
Owing to these technological progressions, the implementation and application
of Information Technology (IT) is a significant driving force behind many
socioeconomic changes (Dierckx and Stroeken, 1999). As the utilization and
commercialization of IT becomes more widespread throughout the world, the
adoption of novel IT can generate new business opportunities and various
benefits. Nowadays, both large organizations and Small and Medium-sized Enterprises (SMEs) are seeking out ways to reinforce their
competitive position and improve their productivity (Premkumar, 2003).
Accordingly, there is an increasing consciousness of the necessity to derive
profit through investing in IT within SMEs. IT tools significantly assist SMEs
through supplying required infrastructure necessary for providing appropriate
types of information at the right time.
IT can also provide SMEs with competitiveness through integration
between supply chain partners and inter-organizational functions, as well as by
providing critical information (Bhagwat and Sharma, 2007). Prior to IT
literature however has shown that only a small number of studies focused on the
adoption and use of IT in SMEs (Grandon and Pearson, 2004). Moreover, it has
been found that in spite of exponential growth of IT within SMEs, the rate of
IT adoption by these businesses has remained relatively low (MacGregor and
Vrazalic, 2005) and large organizations have noticeably profited more than SMEs
in both their IT-enabled improved sale and costs saving (Riquelme, 2002).
Looking for reasons for such differences in IT adoption in SMEs, unique
characteristics of these businesses can be highlighted. SMEs generally have
limited access to the market information and suffer from globalization
constraint (Madrid-Guijarro et al., 2009). Moreover, management techniques such
as financial analysis, forecasting, and project management are rarely used by
SMEs (Blili and Raymond, 1993). Tendency to employ generalists rather than
specialists, reliance on short term planning, informal and dynamic strategies
and decision making process, and lack of standardization of operating
procedures are other distinctive characteristics of SMEs (Dibrell et al., 2008;
Thong et al., 1996). However, restricted resources controlled by SMEs, which is
commonly referred to as resource poverty (Thong et al., 1997; Welsh and White,
1981), is the major differentiator between SMEs and large organizations.
Therefore, and with regard to the weakness of SMEs at different organizational
and managerial, technological, individual, and environmental levels, the IT
adoption and use in SMEs is in a disadvantage position in this respect
(Al-Qirim, 2007; MacGregor and Vrazalic, 2006).
Most Small and
medium-sized enterprises (SMEs) are usually operating in the service, trade,
agri-business, and manufacturing sectors. These will include a wide variety of
firms such as village handicraft makers, small machine shops, and computer
software firms that possess a wide range of sophistication and skills. Some
(SMEs) are dynamic, innovative, and growth-oriented while others are satisfied
to remain small and perhaps family owned. How an organization uses Information
Technology (IT) will largely determine how well and to what degree they will be
able to implement Business Process Reengineering (BPR) observed Lotfollah et al (2012). IT was originally considered simply as an
enabler for BPR (Hammer & Champy, 1993), and while it is still true that IT
can enable BPR initiatives, IT’s role in process improvement has become much
greater and more varied Lotfollah et al
(2012). IT can be the initiator that
drives process improvement, or the tool which makes process improvement
possible especially in Nigeria where Information technology is beginning to
gain momentum. Eardley et al (2008) defined six roles that IT
can play in Business Process Reengineering.
These roles are:
(1) constraint,
(2)
catalyst,
(3) neutral,
(4) driver,
(5) enabler,
(6) proactive.
These roles vary
in impact from being constraining at the negative end to being proactive at the
positive end. Lotfollah et al (2012) observed that modern business organization is a complex collection of business
processes, which cross multiple business units and handle everything from the
mundane daily operations to core business processes. They further noted that
business processes have changed very little since their original
implementation, thus failing to take advantage of new best practices or technological
advancements. Over time, businesses
realized that their current processes were no longer providing a competitive
advantage, and that changes to processes were necessary in order to improve
performance. In order to change the
processes or to build completely new ones, process redesign or improvement must
take place (Lotfollah et al,2012)
Whether the method
is Total Quality Management (TQM), Six Sigma, Business Process Reengineering
(BPR), or one of the many others, the core concepts are the same: streamline
the process, reduce costs, and remove waste they suggested process improvements
can be incremental and continuous, or they can be giant leaps that
fundamentally change the way organizations do business (Lotfollah et al,2012). One thing in common with all process
improvement initiatives is that information technology is a major component,
regardless of the method. Hammer and
Champy (1993) states that IT is an enabler
of BPR, and while this is still true information technology has become more
than just an enabler. Just as throwing
money at a problem will not make it go away, a business problem can’t be
reengineered simply by throwing new information at it (Hammer and Champy,1993).
1.2 STATEMENT
OF PROBLEM
The recent increase in technological advancement has strong impact on
Small and Medium Enterprises (SMEs) in other parts of the world including China
and Brazil (Manyinka et al, 2011). Emphasis
on impact of information technology on e-business processes of SMEs can be
considered as an issue of much apprehension to entrepreneurs, scholars and
practitioners in developing economy like Nigeria. The impact of IT on SMEs with
a focus on e-business perspective has not been greatly explored in Nigeria.
1.3 AIM
AND OBJECTIVES OF THE STUDY
The principal aim
of this study is to examine the relevance of Information Technology on
e-Business Processes of SMEs. To be more elaborate, the research work will
strive to achieve the following:
1) To determine the influence of IT on
different business processes.
2) To determine how effective and efficient
e-business processes has been with the adoption and investment in the area of
Information Technology..
3) To examine the degree of relevance of
Information Technology on various business processes with a focus on SMEs
4) To determine the impact of implementing
IT in SMEs on the nation's economy.
1.4 RELEVANT RESEARCH QUESTIONS
The principal
question of this research is: what relevance is Information Technology in
E-business Processes for SMEs, this research work will also try to answer the
following questions in the course of this study:
1)
Does Information Technology have any
influence on different business processes?
2)
To what extent have the business processes
of organizations become effective and efficient with the adoption and
investment in Information Technology?
3)
Of what relevance is Information
Technology on business processes of SMEs?
4)
What exactly is the impact of implementing
Information technology on the nation's economy?
1.5 RELEVANT
RESEARCH HYPOTHESES
Ho:
IT does not have any relevance on the business processes of SMEs
Hi: IT have relevance on the business processes
of SMEs
Ho:
IT has no impact on e-business processes
Hi:
IT has impact one-business processes
1.6 SIGNIFICANCE
OF THE STUDY
This study focuses
on examining the relevance of Information Technology on E-business Processes.
This study will help the researcher to determine the extent Information
Technology companies in Nigeria use computer software to make the e-business
processes easier. It will also enable SMEs learn the essence of adopting
Information Technology in the business processes.
1.7 SCOPE
OF THE STUDY
As a result of
several constraints, time and cost limitations, this study will be focused on
just one E-business company which is located in Lagos Nigeria,
DirectXplanation.com Nigeria Limited.
1.8 DEFINITION
OF TERMS
E-business: is the application of information
and communication technologies (ICT) in
support of all the activities of business
Business process:
is a set of linked activities that create value by transforming an input into a
more valuable output.
IT
infrastructure: defined as the extent to which data and
applications through communication networks can be shared and accessed for
organizational use.
Information
Technology: is the application of computers and telecommunications
equipment to store, retrieve,
transmit and manipulate data,[1] often in the context of a business or
other enterprise.
Competitiveness: pertains to the ability and performance of a
firm, sub-sector or country to sell and supply goods and services in a given market, in relation to the
ability and performance of other firms, sub-sectors or countries in the same
market.
Six Sigma: is a set of techniques and tools for process improvement.
Software: is a generic term for organized collections of
computer data and instructions, often broken into two major categories: system
software that provides the basic non-task-specific functions of the computer,
and application software which is used by users to accomplish specific tasks.
Business Process Reengineering (BPR): is defined as the
fundamental rethinking and radical redesign of business processes to achieve
dramatic improvements in critical contemporary measures of performance such as
cost, quality and speed.
Click “DOWNLOAD NOW” below to get the complete Projects
FOR QUICK HELP CHAT WITH US NOW!
+(234) 0814 780 1594
Login To Comment