Effect of Use of e-commerce in Company s Productivity (Small and Medium Enterprises in the Electronics Industry)

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1 Effect of Use of e-commerce in Company s Productivity (Small and Medium Enterprises in the Electronics Industry) Rozita Saadatmand 1 *, Reza Safarinejad Fard 1, Dr.Abu Bakar Bin Abdual Hamid 1 1 University Technology Malaysia *Author for Correspondence ABSTRACT: E-commerce is a tool that enables different businesses, partners and customers to issues such as quality of service, etc. to enhance service delivery speed and reduce the cost issues. This research is the statistical community of experts and senior officials. Cochran formula obtained based on a sample size of 102. The present study examines the conceptual model of structural equations and we used SPSS software and LISREL. E-commerce measured regarding the components and variables such as leadership, policy and strategy, infrastructure, e-skills and human resources, security, information and communication, and ethics in networked world enablers. The results showed that the variables associated with e-commerce has high explanatory. This is the model in the first approximation of the experimental data is deductible. Keywords: e-commerce, productivity, small businesses, mid-sized businesses INTRODUCTION Given the nature of social phenomena and their functions in parallel with the interests of society, It also creates problems that e-commerce is not exempt from this. Global nature of technology, access to millions of opportunities, interactive nature, frequency, facilities, numerous accessories And have led to the rapid development of infrastructure supporting individuals, organizations and society have different interests. Currently, these benefits can be seen as an objective, but the successful implementation of e-commerce can increase the benefits were mentioned. It is therefore not surprising that some of the effects of the digital revolution as profound as the industrial revolution saw (Movahedi, 2008). To achieve the benefits of a new phenomenon, it must be provided fields and toys Application to be considered complete and correct to the benefits achieved. Has extensive experience about the benefits of using information technology and communications and consequently there are different e-commerce businesses. Empirical evidence, positive impact on the productivity of the IT companies, Primarily in terms of productivity, profitability, market value and market share as well as intermediate indicators of productivity suggests Such as process efficiency, service quality, cost savings, flexibility, organizational and process and customer satisfaction. Technology is also involved in many areas to compete with foreign competitors; No doubt it is needed to benefit from IC by improving process efficiency, quality of service, cost savings and organizational flexibility and competitiveness of the process, Increase productivity and profitability. On the other hand, according to most countries of the world to join the World Trade Organization And also Iran's application for membership in this organization, most organizations and have prompted organizations to acknowledging all its aspects, including flaws and infrastructure required to join this global organization ready to earn. A look into the background of globalization and the steps that have been taken in this regard Including the creation of the trade, the GATT, Electronic exchange of data and the creation of the World Trade Organization by international authorities, it seems Aspects of e- commerce technology and infrastructure hardware and software to implement it in the work volume is removed (Hanafi Zadeh, 2011). Statement of problem One of the goals of managers and employees in organizations, and organizations improve their performance is Managers to make better decisions about the need for awareness of the problems of the organization's performance in various aspects of financial and non-financial. Change, change and innovation in various aspects of life have always

2 been an integral part of the universe. These innovations and new phenomenon has affected all aspects of human life. The business world and the economy is part of human life. And a wave of innovation and change is not safe (Delon, 1992). Perhaps it could be said that the areas that have the greatest influence on change and innovation Located in the area of business and economics. Innovation and change in business it is important as business organizations, in terms of having the work force, Raw material supply and production activities are to turn the wheels of industry and services (Kang, 2012). One of the latest innovations in commerce and work Use of computer networks, especially the Internet. The study identified the problem facing e-commerce impact on key indicators of performance. Literature review E-commerce It is based on the processing of e-commerce and the electronic transfer of data to a variety of activities such as electronic exchange of goods and services, immediate delivery of digital content and electronic transfers are included. E-commerce can be the purchase, sale or exchange of goods, services and information via computer networks and the Internet are defined. Researcher s e-business e-commerce is considered in a broader sense than which includes not only buying and selling but also to provide services to customers, partners and business organizations, including the implementation of electronic transactions in the clamp (Chen, 2013).Or obstacles hindering the implementation of e-commerce Research Ihlstrum & Magnusson and Scupola 2005 or obstacles hindering the implementation of e- commerce in two main groups, Internal or external or internal factors and external factors have been categorized. Internal factors include the lack of awareness and knowledge about e-commerce and corporate human resources are limited. External issues, mainly include technical considerations, external influencers and support and maintenance. Internal factors: a lot of obstacles to the implementation of electronic commerce in the field of information technology and communications are considered SMEs to adopt and implement the goals of the organization are open. Magnusson and Scupola (2005) Table 1: Barriers to implementing e-business within an enterprise and Scupola Magnusson (2005) Information systems Electronic data interchange Ecommerce - Lack of understanding of the - Lack of awareness of the potential benefits potential benefits - Low understanding of direct interest - Lack of information technology - Lack of expertise in the field of technology Lack of knowledge about the issues of implementation Costs - Lack of adequate organizational readiness - Lack of human resources and time to explore new technologies and systems. - Lack of information technology - Lack of expertise in the field of technology Costs - Lack of adequate preparation - Lack of understanding of the opportunities - As perceived by business executives from value - Lack of measurable financial benefits - Lack of IT knowledge and skills in the field of technology - Lack of understanding of the techniques implemented Costs - Lack of adequate organizational readiness - Lack of human resources and time to explore new technologies and systems - Unwillingness to allocate time and resources to solve the lack of skills and knowledge External factors: one of the major external factors in implementing e-commerce, Organizations is partners. Large corporations are two major trade partners to encourage the use of electronic data interchange these include strategies of persuasion and advocacy strategies. Table 2: External barriers to implementing e-commerce and Magnusson and Scupola (2005) Electronic data interchange Ecommerce 83

3 Insignificant impact on industry The absence of external pressure from trade partners Poor promotion by retailers Lack of safety and security risks Lack of standards Productivity Organization The purpose of the military is an institution that has caused a conscious structure, specific activities and is recognized borders. To achieve the goals of the organization, staffing, organization plays an important role. To complete the jobs of company; people are responsible for human resources and productivity, the productivity of the organization. Productivity, the productivity of any organization is its human resources. Interested Interaction, efficient and effective manpower resources, facilities and technology available, has a key role in achieving the organization's goals and mission. Organizations those favorably manage their human capital productivity, excellence and bring items. In fact, organizations are able to continually grow and develop staff to develop their performance and to achieve this goal; we have Insignificant impact on industry Poor promotion by retailers Lack of safety and security risks Lack of secure payment systems Legal issues Provide limited services on the Internet professional staff to enhance their competencies. Present in variable conditions, to ensure greater efficiency and ultimately achieve the goals enough attention paid to human resource herein. Perhaps more than anything is that people's attitudes affect their efficiency and productivity (Sharif Zadeh, 2009) Efficiency of different definitions offered a job, but what is common in all these definitions, how tasks and responsibilities are assigned. Some have referred to the productivity of labor productivity, manpower, but it should be noted that the efficiency and the output is a concept beyond. Productivity is defined as the sum of the behaviors that individuals associated with the occupation of their show. In another definition of productivity is the result of the tasks that the organization has been responsible for human resources. Table 3: Definitions of Efficiency (Kheradmandi, 2010) DEFINITION YEAR Productivity is the conduct and results 1988 Productivity refers to the efficiency and effectiveness of the duties 1989 Process that both the behavior and the individual results 1990 To achieve the quality and quantity is determined 1994 Productivity is the result of work 1995 It's a process that does not care and is separated from the target 1996 AUTHOR Bramach Robbins Campbell Armstrong Brnadyn Kenny E-commerce and small and medium enterprises while e-commerce has been spreading rapidly among large companies, Small firms with growth convincing in the field of information technology use are not met. However, the e-commerce can help small companies to reduce the gap with large companies, your product or service independent of place and time offer and can easily communicate with their customers. Vendors can use a small part of the e-commerce market the variation in access, Buyers through access to global markets and the availability of products from different vendors and with less cost than benefit. Effect of a new technology in small firms and the average include four elements. (Storto, 2013). 1. The Company's properties; 2. Competitiveness and management strategies; 3. The influence of internal and external organization making the application; 4. Characteristics of the new technologies used Due to the many advantages of using e-commerce can reduce costs and organizational revenues have increased, If there is no necessity for the environment and customers, with the appropriate culture and communication, To increase awareness and encourage them to take steps to use this technology. Research hypotheses Policy and strategy, e-commerce, the productivity of companies (small and medium enterprises in the electronics industry) is impressive. Productivity leading electronics companies (small and medium enterprises in the electronics industry) is impressive. Electronic infrastructure productivity of companies (small and medium enterprises in the electronics industry) is impressive. 84

4 Productivity enabler s worldwide network of companies (small and medium enterprises in the electronics industry) is impressive. HR skills and productivity of companies (small and medium enterprises in the electronics industry) is impressive. Information Security and Communications in the productivity of companies (small and medium enterprises in the electronics industry) is impressive. Ethics in the electronic environment, the productivity of companies (small and medium enterprises in the electronics industry) is impressive. Methodology This research is practical purpose, because the use of e-commerce to investigate the effect on the productivity of companies (small and medium enterprises).on the other hand, this study demonstrates the nature and method - survey. It Includes description, recording and analysis of existing conditions and survey as researchers to explore new ideas, thoughts, perceptions and experiences of people have used the questionnaire. The population and sampling The research is the statistical community of experts and senior officials. Cochran formula is based on a sample size of 102 was obtained. Tools and methods of data collection in this study, to gather the information needed to answer questions and substudy, from primary sources (questionnaire to obtain the views of consumers) and secondary sources (books, articles, reports and papers published in the field of Internet resources). Data collection To explore the conceptual model of research Structural equation modeling with LISREL using spss software and will be used. Structural equation modeling or multivariate analysis with latent variables approach would be acceptable in certain theoretical models using data correlation, non-pilot and test pilot. The covariance structure analysis method is known as the causal model. Hypothesis of a structural include equation model, a specific causal structure among a set of non-visible structures. These structures through a series of indicator variables (visible) are measured. When the results of the sample covariance or correlation matrix becomes And is defined by a set of regression equations, The model can be analyzed and fitted it to a society where it is extracted from the test sample. Besides the conceptual model of study the effect of independent variables on the dependent variable of the regression method is used. The approval or disapproval of assumptions with respect to ß coefficient is considered to be significant. In order to gather the necessary information from the questionnaires used in this study To the use of Electronic Commerce and organizational efficiency, however, is designed in the population studied. Table 4: Indicators of the use of e-commerce in the electronics Description Components There is a comprehensive plan Technology IT, transparent and Policy and Strategy comprehensive policies in the field of IT, support for innovation in products and benefit from competitive advantage Priorities for IT, the leaders (senior managers) organization leaders Leader Electronics familiar with the basic principles of communication policy, leaders of the effort to remove barriers in communication, leadership efforts in the implementation of appropriate policies to protect information and communication technology. Organization access to computers, access to the , access the Electronic infrastructure website, access to the LAN, access the Internet, use of the electronic exchange of data, employee access to information from outside the organization's computer The cost of training and human resource development, using licensed Enablers networked world software, development of legal and regulatory frameworks, development and improvement of the organizational structure based on IT, competition in the field of ICT There are experts in the field of information technology within an Skills and human resources organization, there are consultants specializing in information technology, the number of staff are familiar with the concepts and applications and benefits of information technology, the number of Row

5 hours allocated, the number of managers familiar with the concepts, applications, advantages, IT, number forces of English language skills as a prerequisite for commercial / research, there is a human resource software. Information security policies, there are backup systems, there is a firewall Rights and obligations in relation to the data (privacy, free Yha, personal information), intellectual property information, responsibility, commitment and accountability creators of information, data quality assurance (observance of standards), the quality of organizational life (according to the values of the organization, procedures and processes) Information and Communications Security Ethics in the electronic environment 6 7 Table 5: Indicators of efficiency of enterprises in the electronics Description Components Cost control, risk management, value management. Financial Excellence in planning, creating excellence, excellence in performance, Internal processes progress Establish and maintain relationships with customers, customer Customers satisfaction, performance levels associated with customers Professional competence, effectiveness, management, staff, research on Growth and new technologies, the development of learning Row Findings: The stability of a test to measure the subject in different time periods, reliability refers to the test. The most reliable test for multiple choice questions of the present study, Cronbach's alpha coefficient is a respondent answers to all the questions in a test of logical consistency measures or a questionnaire. Cronbach's alpha coefficient for the questionnaire ecommerce the questionnaire is and organizational efficiency of the questionnaires showed acceptable reliability. The r, observed at the level of p <0.05)) shows a significant correlation between the seven factors leading electronics, policy and strategy, infrastructure, electronic, Skills and human resources, security, information and communication, and ethics in a networked world enablers of organizational performance. The highest correlation or relationship between information security and communication and organizational performance with a correlation coefficient is Table 6: Results of the Pearson correlation test for performance-based organizational prerequisites sig r N Items Leader Electronics Policy and Strategy Electronic infrastructure Skills and human resources Information and Communications Security Enabling networked world Ethics in the electronic environment In relation to the financial perspectives, internal processes, learning and development, customer and show results significant correlation between the seven leadership, policy and strategy, Electronic infrastructure, skills and human resources, security, information and communication, and ethics in a networked world enablers are the dimensions. Given the significant level column in the table below reveals that the six independent variables leading electronics Strategic policy, skills and human 86

6 resources, information security and communications, Enablers and ethics in a networked world have a significant effect on organizational performance. Table 7: Results of regression and Pearson's correlation test. Standardized Standardized coefficients are not coefficients Model Significant level t beta Fitting a model to measure and analyze the average structure of many indicators can help Including the level of cover-square test / two, root mean square error of the estimate RMSEA Goodness of fit (GFI) plots amended AGFI)) plots the norm NFI)) Not a Standard B deviation Constant value Leader Electronics Policy and Strategy Electronic infrastructure Skills and human resources Information and Communications Security Enabling networked world Ethics in the electronic environment normal fit NNFI)), the comparative fit CFI)) comparative fit ((RFI, incremental fit (IFI), thrifty normalized fit (PNFI), Normalized chi-square to degrees of freedom CMIN / df cited. Acceptable level. up 0.05 up < 3-1 Estimated values Abbreviation GFI AGFI NFI CFI RFI PNFI RMSEA CMIN/df Index name Chi-square surface Goodness of fit Adjusted goodness of fit Normalized fit Comparative fit Comparative fit Thrifty normalized fit Root mean square error of the estimate Normalized chisquare to degrees of freedom The grouping of indicators Absolute fit indices Comparative fit fit indices thrifty 87

7 Consistent with what is presented in the table above, the data collected and the results of the analysis of these data, a good fit to the conceptual model of the show. Fitting the data collected from the covered square test / two specified. The amount of the estimated model is given the high value of 0.05 can be argued that the model is a good fit to the experimental data. Conclusion As previously mentioned, it is e-commerce based on data processing electronic transmission of data and the variety of activities such as the electronic exchange of goods and services, and electronic transmission of digital content delivery systems. To access this task, companies are required to establish the readiness of their respective organizations. Consistent with what was observed in the study, according to e-commerce electronic components and variables such as leadership, policy and strategy, Electronic infrastructure, skills and human resources, security, information and communication, and ethics in a networked world enablers were measured. The results showed that the variables associated with e-commerce has high explanatory. This is the model in the first approximation of the experimental data is deductible. References Movahedi, M. and Yaghoti, M., Provide a model for measuring e-readiness of small and medium businesses in the country's defense. New Journal of Economics and Business, No. 12, Spring 2008, Pages Hanafi Nezhad, message and Rezaei, M., 2011.discription, barriers and solutions for e-commerce. Tehran, cashmere Kheradmand, Abraham and moderator, Fatah, 2010, to examine the relationship between organizational culture and employee performance, Islamic Azad University, North Tehran Branch. Beyond Management, 12 (3) Sharifzade, Fattah M. Moghaddam, Joseph, Spring 2009, organizational factors affecting employee performance combat smuggling province police chief, Police Management Studies, Issue One: Kang, G. G. and Fredin, A., "The Balanced Scorecard: The Effects of Feedback on Performance Evaluation", Management Research Review, Vol. 35 (7), pp Chen, J. V., Rungruengsamrit, D., Rajkumar, T. M. and Yen, D. C., "Success of electronic commerce Web sites: A comparative study in two countries", Information & Management N. 50, PP Storto, C.L., "Evaluating ecommerce websites Cognitive efficiency: An integrative framework based on data envelopment analysis", Applied Ergonomics, N.44, PP Ihlstrum, C & Magnusson, M and Scupola, A., ٢٠٠٥. Barriers to Electronic Commers E Business..١٠ Collecter. pp ١٧١-١٧٨. Delone, W. H. and Mclean, E.R., "Information systems success: the quest for the dependent variable", Information Systems Research 3(1), pp

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