TABLE OF CONTENTS

 1.0 Introduction

2.0 Literature and theories 3.0 Globalization of E-Commerce in Business 4.0 Research Methodology, Data Collection and Analysis 5.0 Future Research 6.0 Conclusion 7.0 References

1.0    Introduction

This paper examines how globalization of e-commerce is impacting business in general. With the increase of internet-based technologies, it has been the reason for recent stimulus globalization. In this Information Age, Internet commerce is a powerful tool in the economic growth of developing countries. While there are indications of ecommerce patronage among large firms in developing countries, there seems to be little and negligible use of the Internet for commerce among small and medium sized firms. E-commerce ensures better business in the SMEs and sustainable development of economics for developing countries. However, this is based on strong political will and good governance with a responsible and supportive private sector within an effective policy framework. As we know the complete definition of E-commerce is the use of electronic communications and digital information processing technology in business transactions to create, transform, and redefine relationships for value creation between or among organizations, and between organizations and individuals. E-commerce allows companies to increase their sales in domestic and foreign operations and the flexibility afforded by the technology also provides less costly opportunities to locate operations strategically. E-commerce not only reduces communication costs, but also increases flexibility in locating activities. Research point indicates that internet technology has led to an increase in international trade (Freund and Weinhold, 2002, 2004). This is the evidence of how it suggests profits from foreign operations have also increased in recent years (Hilsenrath, 2005). In the emerging global economy, e-commerce has increasingly become a necessary component of business strategy being a strong catalyst for economic development. Integration of information and communications technology (ICT) in business has evolved the relationships within organizations and those between and among organizations and individuals. The controversial current social and economic trends are globalization and the widespread adoption of information and communication technologies (ICTs). Many argue that these two trends are closely associated, each driving the other forward, and both being driven by other common forces, such as trade liberalization, deregulation, migration, and the expansion of capitalism and democracy (c.f., Held et al., 1999). Pohjola (2002) argues that the twin forces of globalization and the ICT revolution are combining to create the so-called New Economy, marked by higher rates of economic and productivity growth. “Technology is both driven by and a driver of globalization, as both forces continually reinforce one another” cited by (Bradley et al., 1993).Specifically,the use of ICT for ecommerce in business has enhanced productivity, encouraged greater customer participation, and enabled mass customization, besides reducing costs.Prior to development in the Internet and Web-based technologies, the distinctions between traditional markets and the global electronic marketplace-such as business capital size, among others-are gradually being narrowed down. Strategic positioning is the ability of a company to determine emerging opportunities and utilize the necessary human capital skills (such as intellectual resources) to make the most of these opportunities through an e-business strategy which is simple, workable and practicable within the context of a global information and new economic environment. Together with the appropriate strategy and policy approach with e-commerce enables small and medium scale enterprises to compete with large capital-rich businesses. On another plane, developing countries are given increased access to the global marketplace, where they compete with and complement of the more developed economies. Most of the developing countries are already participating in e-commerce, either as sellers or buyers. However, to facilitate e-commerce growth in these countries based on globalization phenomenal, the relatively under-developed information infrastructure must be improved. Significantly, economic trend of the past decade is the growing use of the Internet for conducting business. Many firms are being driven toward greater adoption of e-commerce by pressure to compete at the global level. The Internet and e-commerce are part of the process of globalization. Globalization is generally regarded as the increasing interconnectedness of the world through flows of information, capital, and people facilitated by trade and political openness as well as information technology (IT). “Beyond this, however, the nature and impacts of globalization are highly contested” cited by (Held et al., 1999). Convergence theorists regard globalization as a universal process of homogenization in which countries tend toward a common way of producing and organizing economic life with resulting common social outcomes (Bell, 1973; Ohmae, 1990, 1995). Divergence theorists argue that national diversity in the pursuit of differing social and economic outcomes will prevail and prevent convergence from taking place (Berger & Dore, 1996; Boyer, 1996; Hirst & Thompson, 1996;Wade, 1996). Transformation theorists regard globalization as an uneven process involving elements of both convergence and divergence, in which countries around the world are experiencing a process of profound change as they try to adapt to a more interconnected but uncertain world (Giddens, 1991, 2000). Globalization is being intensified by the spread of the Internet, linking businesses and individuals around the world into a common electronic network. There is great excitement about the Internet’s potential for removing geographical obstacles to economic growth and for achieving global integration in developing as well as in industrialized countries. A related concern is that uneven diffusion of e-commerce and the Internet is creating a “digital divide” and exacerbating the gap between rich and poor countries referred by Norris, 2001. Therefore, we are interested broadly in understanding the extent to which the Internet and e-commerce are diffusing among different countries, and the nature of their impacts on the globalization debate. However, in this article, we focus more narrowly on identifying the key factors shaping e-commerce diffusion globally in business. This paper examines that global forces such as competition and global production networks are common influences across different countries. Global forces are varied and uneven due to national characteristics such as information infrastructure, business innovation/entrepreneurship and consumer preferences and national policies that create different market and telecommunications regimes—variously driving, facilitating or inhibiting adoption (Boyer, 1996; Wade, 1996;Dedrick & Kraemer, 1998). With reference to International Data Corp (IDC) that estimates the value of global e-commerce in 2000 at US$ 350.38 billion. This is projected to climb to as high as US.14 trillion by 2004. IDC also predicts an increase in Asia’s percentage share in worldwide e-commerce revenue from 5% in 2000 to 10% in 2004 (See Figure 1 – Worldwide E-Commerce Revenue, 2000-2004). Asia-Pacific e-commerce revenues are projected to increase from .8 billion at year-end of 2001 to 8.5 billion by the end of 2004. Overall, this research makes several contribution, data collection primarily had been done in this paper to analyze on how globalization of e-commerce will benefits business moving forward in the future.

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