E-commerce from Suppliers and Sub-contractor Perspective
Abstract
Less research has been done concerning electronic commerce from the suppliers and sub-contractors’ perspectives. This paper aims at identifying the growth of e-commerce technologies concerning suppliers and sub-contractors’ angles. The advantages, disadvantages, and barriers related to the techniques are well discussed. It will also give recommendations on to continue making sure the e-commerce continues to benefit both suppliers and sub-contractors. This study will also state barriers that make suppliers and sub-contractors fail to use e-commerce. The paper will employ the use of questionnaires and interviews as the research methodologies. The study identified barriers that lead to the limited use of e-commerce technologies by suppliers and sub-contractors. It also reached future encouragements to make sure sub-contractors and suppliers utilize electronic commerce technologies fully. The paper concludes that suppliers and sub-contractors do not extensively use e-commerce technologies.
Keywords:
Sophisticated software’s, barriers, e-commerce technologies
- Introduction
E-commerce is selling goods, services, and products through the internet. It is also called internet commerce since the services are provided online through an internet network. The development of electronic commerce technologies concerning trading has dramatically improved over recent years. It has seen the trading sector improve significantly concerning productivity and also frequency in communication. However, it also has disadvantages and barriers which limit its use by the suppliers and sub-contractors. If future encouragements are made, then e-commerce technologies will be used highly by suppliers and sub-contractors. The following research questions emerge as a result of the above comments: “what are the advantages and disadvantages of using e-commerce to suppliers and sub-contractors? What are the barriers that limit the use of e-commerce by suppliers and sub-contractors? How can suppliers and sub-contractors be encouraged to apply e-commerce and continue using it?
The next sections describe the general overview of the paper, followed by advantages and disadvantages. Study methodology, discussion of the results, barriers, future encouragements, and a conclusion is also included.
- Literature Review
E-commerce can ease trading between suppliers and sub-contractors. According to Gorodnichenko & Talavera (2017), e-commerce has profoundly improved the section of the direct business (p.249). It is digital innovation. The importance of changes is to make sure that they create an environment in which companies can flourish (Bildt et al., 2016, p.19). Don't use plagiarised sources.Get your custom essay just from $11/page
2.1 Advantages of E-commerce to Suppliers and Sub-contractors
Internet trading technologies have significant benefits to both subcontractors and suppliers. Existing research has connected e-commerce with performance but has failed to give in-depth information (Zheng, Yang & Wang, 2019, p.392). It has led to efficient retrieval of messages between suppliers and sub-contractors. There are effective communication and effective message delivery, which enhances productivity between of both suppliers and the contractors. It is a tool which can reach distant audience and patrons (Friedlander, 2016, p.906). It is time-saving since everything is done electronically and thus no time wasted by moving from one place to place to find suppliers or sub-contractors. E-commerce is a driver to trade and development (Pitakdumrongkit, 2018, p.3). It makes tendering and procurement easy to sub-contractors. E-commerce has increased traceability by reducing the amount to carry out exportations (Lee-Makiyama, 2018, p.213). There is enhanced project communication between sub-contractors and those doing the project, and thus easy to control projects. E-commerce reduces the occurrences of theft. It also reduces wastage for both suppliers and sub-contractors. E-Commerce is a raising contractual activity (Jiménez, Antón & Crichlow, 2017, p.347). Sub-contractors can manage product usage electronically without visiting sites, thus reducing wastage. The application of electronic commerce will lead to reduced procurement cycles. E-commerce plays a significant role in adjusting industry structures and improves resource utilization efficiency (Xue, Wang & Li, 2019, p.879). The internet has brought about dynamics in competitions (Chen, Wang, & Jiang, 2016, p.294). Collaborations and effective communication will bring about transparency and make both supplier and sub-contractors to cope with the competition.
2.2 Disadvantages of Using E-commerce to Suppliers and Sub-contractors
There are many challenges to the application of e-commerce by suppliers and contractors despite the convenience and benefits. There is a lot of resistance and a lack of trust when it comes to the use of e-commerce technologies by suppliers and sub-contractors. In the context of sharing commerce, trust plays a more outstanding role (Hawlitschek, Teubner & Weinhardt, 2016, p.27). The information management systems have led to data overload due to high levels of data accumulation. Transfer of information to the sub-contractors is a core duty performed by suppliers. Gathering of information makes it tiresome when one wants to retrieve purposeful information from the e-commerce communication channels. Information management and data integration become very difficult when data accumulations become too high.
E-commerce can affect organizational structure and performance adversely. Supply chain organizations and Sub-contractors Companies may not have the required skills to manage and make use of new e-commerce technologies. E-Commerce technologies affect employee management and also lead to a complete change of organizational goals, especially when workers are forced to accept new technologies. E-commerce selection devalues the local product system or alters the way of information flow and efficiency within the group (Wang, Zhang, & Song, 2019, p.125). E-commerce may turn out to be less productive and expensive. Implementing the technology needs money, and when the techniques do not meet the required sales, suppliers may incur losses. Some organizations are resistant to change and may fail to trust the e-commerce channel systems making them remain less productive. Individuals may also find ways to carry out theft despite the implementation of e-commerce technology. Employees in supply chain companies can collaborate with employees in sub-contracting organization and carry out the robbery.
3.0 Research Methodology
The research used interviews and questionnaires to achieve less biased information. The study was conducted in sub-contractors and supply chain organizations to determine the implementation of e-commerce technologies. The interviews were aimed at giving more wait to data found by the use of surveys.
3.1 Questionnaire Designs
The questionnaires were designed and presented to different companies to answer. The surveys were created using simple terms to make those explaining them understand with ease and provide the correct information. The questions included in the questionnaire were company name, type of electronic commerce technology used, advantages noticed, disadvantages noticed, and barriers to the use of e-commerce. Questionnaires were sealed in an envelope and returned for analysis. 10% of the inquiries had omissions hence discarded while the remaining 90% had credible information which was used to carry out e-commerce technology use analyses.
3.2 Interviews
One on one interviews were conducted. Discussions involved senior management personnel of different companies with knowledge of e-commerce technologies. Interviews were conducted in two sub-contracting organizations and two supply chain companies. The interview had no specific format and involved asking of supplementary questions to get more information about the implementation of electronic commerce by suppliers and sub-contractors.
4.0 Discussion of Results
The results showed that the most common type of e-commerce used by suppliers and sub-contractors was the email. Each company that answered the survey questions indicated that they make use of email and internet connections to send messages to suppliers or sub-contractors (Table 1).
Table1. Types of E-commerce used by Sub-contractors and Suppliers
| Name of the e-commerce type | Percentage of use by suppliers and sub-contractors |
| 100% | |
| Fax/ Courier | 75% |
| Online payment | 60% |
| Intranet | 34% |
| Extranet | 20% |
| Bid invitation | 2% |
The table above showed that the use of email is common by suppliers and sub-contractors. Suppliers and sub-contractors typically use fax services and courier services. The table showed that supply chain companies and sub-contracting organizations have begun to accept online payments highly, although the percentage is not too high. Intranet and extranet were lowly used by supplies and sub-contracting companies. Almost all suppliers and sub-contractors companies were unaware of the bid-invitation type of e-commerce.
4.1 Barriers for Using Electronic Commerce by Suppliers and Sub-contractors
The e-commerce technology has obstacles that make its use less employed by suppliers and sub-contractors. The first barrier is the reluctance of both suppliers and sub-contractors. These companies do not adopt computer technologies with ease. Failure to adopt computer technologies makes suppliers and sub-contractors to lack behind in terms of electronic commerce technologies applications. Another barrier is the lack of technical expertise and personnel. New computer technologies are not known to sub-contracting and supply companies. There is also no enough in-house expertise to implement and make use of e-commerce technologies. Lack of knowledge and well-trained personnel in the field of e-commerce makes it difficult for suppliers and sub-contractors to make use of the technology. Other organizations lack well-integrated information systems. Lack of information systems is a barrier to many suppliers and sub-contractor. When information cannot be conveyed with ease or accurately, it makes supply chain and sub-contracting companies fail to adopt e-commerce technologies. Another barrier is the fear of changing the business type. This fear makes the companies continue to use the known technologies instead of implementing e-commerce without surety of business continuity and profits. Policies and taxation laws are also another barrier to the implementation and growth of e-commerce. According to Pitakdumrongkit (2018), taxation can harm e-commerce and also future developments in digital marketing (p.5).
4.2 Future Encouragements for Suppliers and Sub-contractors to Make Use of E-commerce Technologies
Supply and sub-contracting companies need to be encouraged to make use of e-commerce technologies. The barriers discussed above are people-related, and people need to be sensitized about the usage and importance of e-commerce systems to suppliers and sub-contractors. There is a need to come up with friendlier user systems to make suppliers and sub-contractors use them. E-commerce systems should not be complicated, for it can discourage their use by subcontractors and suppliers. E-Commerce technologies should set industry standards. Setting industry standards will be higher, and suppliers and sub-contractors will be aware of the set rules, and the benefits hence make use of the technologies with ease. E-commerce technologies should be made relatively cheap for suppliers and sub-contractors to afford them. Computer technologies have proved to be expensive, making them less used by sub-contracting and supply chain companies. E-Commerce technologies should have fully integrated information systems to make sure that no information loss. Many digital platforms think of growing a share of commerce and communication (Khan, 2019, p.973). Suppliers and sub-contractors fear to lose information since that may mean a loss. They prefer to use simple technologies or manual storage so that no info lost, which can affect company production adversely.
4.3 Ensuring that E-commerce Technologies Benefit Both Suppliers and Sub-contractors
It is essential to make sure that electronic commerce benefits supply chain and sub-contractors companies. The following will make sure that e-commerce systems are beneficial to suppliers and sub-contractors. Training, learning, and knowledge sharing between the workers are crucial. Subcontracting and supply companies may consist of different independent individuals, and inadequate preparation and poor knowledge sharing may lead to information inefficiency and reduced productivity. Workers should be given learning sections to study IT and make them understand e-commerce technologies and their advantages. Making sure that sub-contractors and suppliers use e-commerce technologies effectively, continued training is essential. It will continue equipping them with required skills and thus can be able to use electronic commerce in a way that is not disadvantageous to the Company. The barriers showed that suppliers and sub-contractors are desperately seeking e-commerce knowledge; hence continued training will fully equip them, and they will start seeing the benefits of employing such technologies. The learning will make them able to operate sophisticated soft wares with ease and increase productivity and operations efficiency. Current advancements in computer learning have reinforced the competitive edge of leading online platforms (Hemphill, 2019, p.1973). Companies should provide training facilities to suppliers and sub-contractors to make sure they benefit from the training. Inadequate training facilities tend to give less knowledge and little understanding of sophisticated computer technologies. Suppliers and sub-contractors need to acquire training using equal facilities, which they will use during the actual work.
5.0 Conclusions and Future Recommendations
The paper has shown electronic trading has benefits, disadvantages, and barriers. E-Commerce will enable suppliers and sub-contractors to maintain purposeful relationships with ease. It allows trading with fewer struggles. Different types of e-commerce technologies are not used. We have seen that the most used one is electronic mail. Suppliers and sub-contractors use emails to reach each other. The least known type of network is bid- invitation. Barriers such as lack of expertise and trained personnel limit the use of electronic commerce by suppliers and sub-contractors. The most significant benefit which can be seen from e-commerce is increased efficiencies in operations, effective communication, and increased productivity leading to high profits for the suppliers and the sub-contractors. Barriers limiting the use of e-commerce technologies are mostly people related. The software should be made accessible to encourage suppliers and sub-contractors to use the techniques in the future. Other future recommendations include coming up with systems that are information integrated. Equipping workers with knowledge, providing better learning facilities, and continued learning will make sure that suppliers and sub-contractors continue to benefit through e-commerce technologies.
6.0 References
Bildt, H., Kennard, W., Burwell, F., & Barker, T. (2016). Building a Transatlantic Digital Marketplace: Twenty Steps Toward 2020 (pp. 19-24, Rep.). Atlantic Council. Retrieved February 17, 2020, from www.jstor.org/stable/resrep03652.10
Chen, X., Wang, X., & Jiang, X. (2016). The impact of power structure on the retail service supply chain with an O2O mixed channel. The Journal of the Operational Research Society, 67(2), 294-301. Retrieved February 17, 2020, from www.jstor.org/stable/43830673
Davis, J. (2016). The Group Dynamics of Inter-organizational Relationships: Collaborating with Multiple Partners in Innovation Ecosystems. Administrative Science Quarterly, 61(4), 621-661. Retrieved February 17, 2020, from www.jstor.org/stable/44508531
Dutta, M., & Marjit, S. (2016). Intra-country Technology Transfer. Indian Economic Review, 51(1/2), new series, 117-127. Retrieved February 17, 2020, from www.jstor.org/stable/44376239
Friedlander, S. (2016). Net Neutrality and the FCC’s 2015 Open Internet Order. Berkeley Technology Law Journal, 31(2), 905-930. Doi: 10.2307/26377776
Gorodnichenko, Y., & Talavera, O. (2017). Price Setting in Online Markets: Basic Facts, International Comparisons, and Cross-Border Integration. The American Economic Review, 107(1), 249-282. Retrieved February 17, 2020, from www.jstor.org/stable/24911328
Hawlitschek, F., Teubner, T., & Weinhardt, C. (2016). Trust in the Sharing Economy. Die Unternehmung, 70(1), 26-44. Retrieved February 17, 2020, from www.jstor.org/stable/26305660
Hemphill, C. (2019). Disruptive incumbents: platform competition in an age of machine learning. Columbia Law Review, 119(7), 1973-2000. Doi: 10.2307/26810856
Jiménez, D., Antón, A., & Crichlow, J. (2017). Self-regulation of electronic commerce: issues in the context of Chilean law / la autorregulación del comercio electrónico: apreciaciones Desde el derecho Chileno. Revista Chilena De Derecho, 44(2), 347-370. Retrieved February 17, 2020, from www.jstor.org/stable/26506045
Khan, L. (2019). The separation of platforms and commerce. Columbia Law Review, 119(4), 973-1098. Retrieved February 17, 2020, from www.jstor.org/stable/26632275
Lee-Makiyama, H. (2018). E-Commerce and Digital Trade. In Drake-Brockman J. & Messerlin P. (Eds.), Potential Benefits of an Australia-EU Free Trade Agreement: Key Issues and Options (pp. 211-224). South Australia: University of Adelaide Press. Retrieved February 17, 2020, from www.jstor.org/stable/j.ctv9hj94m.19
Pitakdumrongkit, K. (2018). Addressing digital protectionism in ASEAN: towards better regional governance in the digital age (pp. 1-3, Rep.). S. Rajaratnam School of International Studies. Retrieved February 17, 2020, from www.jstor.org/stable/resrep17645.4
Wang, C., Zhang, T., & Song, Z. (2019). E-Commerce Adoption and the Dynamics of the SMEs Cluster: Evidence from Zhili Children’s Garment Town, China. China Review, 19(4), 125-150. Doi: 10.2307/26838915
Xue, X., Wang, X., & Li, L. (2019). Employment Absorption Capacity of the E-commerce Service Industry. Journal of Coastal Research, 879-882. Doi: 10.2307/26853369
Zheng, D., Yang, W., & Wang, D. (2019). E-commerce, Collaborative Innovation Capability, and Performance: An Empirical Study of Shipping Companies. Journal of Coastal Research, 392-397. Doi: 10.2307/26853971