Literature review: Benefits and risk related with E-commerce
Introduction
The critical review of literary articles allows the researcher to develop some long term and effective understanding regarding a particular issue. The critical review of scholarly article provides some authentic information related with different aspects of the presented problems. In this regard the paper present literary review of peer reviewed source of information such as journals regarding E-commerce. The topic of the research is “Investigation of Effectiveness of E-commerce measures under the light of different critical risk associated with the phenomena of E-commerce”. For this purpose two journal articles namely “Enabling Usage Control through Reputation Objects: A Discussion on e-Commerce and the Internet of Services Environments” written by Alnemr et al (2010), and “A trust-based consumer decision-making model in electronic commerce: The role of trust, perceived risk, and their antecedents”, written by Kim, Ferrin and Rao (2008), has been compared and reviewed for the paper.
Theoretical framework
In order to analyze the research topic in the most effective manner, a clear and effective theoretical framework has been developed on the basis of the review of different literary sources. There are different steps and aspects of this framework, which can be discussed under the some specific heading detailed as below:
Concept of E-commerce
The concept of E-commerce is getting some intensive popularity day by day in existing business environment. Defining the E-commerce concept, Alnemr et al (2010) has reflected that E-commerce is basically a process through which, customers as well as organizations undertakes there all their commercial transaction with the help of internet. As per the author, there are a number of different activities such as Internet marketing, online transaction processing, electronic funds transfer (EFT), online payments of shopping bills, and electronic data interchange (EDI), that can be categorized under the E-commercial activities.
Explaining the concept of e-commerce, Kim, Ferrin and Rao (2008) has also stated that e-commerce is a new way of undertaking business transactions which are getting popularity day by day. Authors have illustrated the e-commerce in terms of cyber transactions in which there is a virtual transaction of money takes place between two different entities. In the views of the author, cyber transaction can be considered as the measure in which, both customers and organization interacts with different virtual means of communication such as e-mail, mobile devices and telephones and accomplish their business transitions online.
In this support Xiao, and Benbasat, (2007) have also explained that concept of e-commerce is quite wide as it includes business to business (B2B), Business to customer (B2C) and customer to customer (C2C) transactions. There are different activities and functions that can be undertaken online with the help of e-commerce. Along with this, the authors have elaborated that in addition to financial traction, e-commerce measures are also used for the purpose of accomplishing some other important commercial transaction such as exchange of important information through electronic data interchange (EDI) in B2B business transactions and marketing of product through internet.
Positive aspects related with the phenomena of E-commerce
There are a number of different reasons behind increasing popularity of e-commerce related activities undertaken by individual and business organizations. In this context, Kim, Ferrin and Rao (2008) have elaborated that the convenience and easiness is one of the major aspects related with the phenomena of E-commerce. In comparison to traditional business transactions, virtual commercial transactions are quite easy and effective be carried out. It takes lesser amount of time and efforts from the side of customers.
Zhu, and Thatcher (2010) have added further that e-commerce transactions save some significant amount of time of customers. As per authors, e-commerce has provided a way to the customer through which, he can easily undertake shopping and other related business transaction while sitting at his home. The author has also stated that e-commerce measures also provide 24*7 facilities of undertaking business and commercial transactions, which cannot be possible in the case of traditional measures of business transaction.
In the same manner, Alnemr et al (2010) has also presented some crucial and positive aspects of e-commerce. In the views of the author, use of virtual money for the purpose of undertaking business transactions is quite safer than conventional mode of payment. It is due to the reason that in virtual transaction there is a less chance of theft and robbery.
Sutton et al (2008) has also elaborated that business organizations can also retrieve some crucial advantage of e-commerce. As per the author, through e-commerce measures, the organization can reduce the length of its supply chain and enhance its profit margin.
In this way, different literatures have presented some of the crucial and positive aspects of the e-commerce related business transactions.
Risks and issues related with E-commerce
There are some critical issues also related with the phenomena of e-commerce. There are a number of different literatures which highlight some issues related with the E-commerce. For instance, Alnemr et al (2010) has stated that for the successful implementation of E-commerce related transactions, there is a need of knowledge and understanding of internet. In the absence of effective intensive technical knowledge the success of e-commerce cannot be assured. In addition to this, the lack of proper awareness and understanding regarding different measures of having secure and effective e-commerce business transactions is also one of the most critical issues associated with e-commerce. In the absence of proper information and knowledge regarding safe and secure e-commerce transaction, the proper implementation of e-commerce cannot be possible.
In addition to this, lack of trust of people over different measures of e-commerce has also been highlighted by Kim, Ferrin and Rao (2008) as one of the most critical issues related with the effective usage of e-commerce at the mass level. In the views of the authors, in comparison to conventional measures of business transactions, chances of fraud are higher in e-commence transaction. As there is a lack of direct interaction between seller and buyers, the chances of fraud enhance in the context of e-commerce related business transactions. In addition to this, authors have also elaborated that there are some other related characteristics of E-commerce such as non-instantaneous nature of the transaction, blind and borderless transactions undertaken within phenomena of E-commerce which leads to decrease the level of trust pursued by the customers over seller.
Along with this, Wang, and Benbasat (2005) have also depicted that lack of privacy and hacking of some crucial information of the buyer such as personal and account information of the buyer are some of the critical issues associated with the e-commerce. There are a number of different cases related with the cyber frauds and crimes, which leads to decrease the trust of customers over e-commerce and creates its negative image in their eyes.
These are some of the critical issues related with the successful implementation of e-commerce in the real life practices.Comparison between two articles related with e-commerce
For the purpose of having a thorough and intensive investigation of the concept of e-commerce, an in-depth of review of two different articles has been done in the paper. In this regard, first article reviewed in the paper is written by Alnemr et al (2010). The article is reflecting an in-depth and empirical discussion regarding the e-Commerce and the Internet of Services Environments. In comparison to this, another article, which is written by Kim, Ferrin and Rao (2008), is reflecting role of trust-based consumer decision-making model in electronic commerce.
Along with this, article written by Alnemr et al (2010) reflects some positive aspects of the e-commerce phenomena in the real life practices. The article is reflecting that in existing business environment, where technology is advancing quite rapidly, e-commerce related trend is also advancing quite intensively. In comparison to this, article written by Kim, Ferrin and Rao (2008) is focusing upon the issue related with trust of customers over sellers in an e-commerce related business transaction in the most effective manner. The article reflects that in the context of e-commerce business transactions, it is quite essential for the customers to gain some intensive amount of trust over seller and this virtual mode of business transaction.
Along with this, from the perspective of effective disposition of the results, there is a difference between both the article can be revealed. The article of Alnemr et al (2010) concludes that e-commerce is having enormous amount of benefits to both customers and business organization, which makes the concept of e-commerce quite worthy in existing business environment. In comparison to this, the article written by Kim, Ferrin and Rao (2008) concludes that although the concept of e-commerce is quite beneficial for business organizations as well as customers, yet some critical issues such as lack of trust, and high level of risk involved within the e-commerce business transactions are also there which are decreasing effectiveness of the measure.
Conclusion
On the basis of overall critical review of different scholarly articles, it can be concluded that e-commerce is having some intensive amount of benefits which are making business transaction easier and more effective for customers as well as seller. However, still there are some critical issues also associated with this phenomenon. There is a need of addressing such issues for the purpose of availing maximum amount of benefits of e-commerce.
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