sectors, and the second is the globalization process in the Introduction markets and the acceleration of liberalization.
The technologies used in processing and managing information have revealed the information society as the The second factor, interacted with e-Business, 21st century is among the production factors of globalization of the markets accelerated the development information in enterprises. The information society is of e-Business, and the feature of e-Business that reshaping the social structure, hence the economic eliminates the borders of the country and eliminates structure, and creates a new world order. In this new order, customs has increased globalization (Çoşkun, 2004: 247).
it is extremely important for companies that make up the The Importance of Information for e-Business backbone of the economy to benefit from information Information is an important factor for the continuity of the technologies, as they are the key to the knowledge existence of institutions and organizations. The economy. The use of information technologies has information benefits its users in real-time and long-term become the most important indicator of competitiveness in decision making in real time. The concept of information the production, management, application of the industry technology refers to the techniques and processes used in and its transformation into social benefit. transforming data into information (Akın, 1998: 247).
e-Business Environment Digital technologies have changed the way business-to- business firms act in business markets in terms of what However, e-Business is not limited to purchases and sales, they sell (their value propositions, eg, Gandhi, Thota, but captures many IT-enabled elements of the value chain, Kuchembuck, & Swartz, 2018) and how they sell it (their such as marketing and advertising, customer relationship, value demonstrations, eg, Syam & Sharma, 2018) – and enterprise resource planning, training, and human resource they also pose new requirements to a firm (Ritterand management (Moriset, 2020:1). Pedersen,2020:181). Thanks to information technologies, e-Businesses; It can be expressed as the online trade in the buyers and sellers have gained the ability to make easier digital environment, which has emerged with the and faster decision making in commercial processes increasing use of the internet all over the world since the (Demir et al., 2000: 33). second half of the 1990s. While electronic commerce The Importance of Globalization for e-Business refers only to commercial transactions performed online, e-Business includes, in a broader sense, electronic The increasing importance of technology and developments commerce, as well as online information sharing and since the 1980s contributed to the elimination of national exchange and digital and online business activities. borders and paved the way for a global competition. Global competition, on the other hand, increased the speed of e-Business is the most important element of e-Economy technological developments and created new opportunities after Suarez Villa (2001: 5) expresses e-Economy as “an and enabled new products to take place in the markets in a economic system based on information technology, where faster and more accessible way. people do business with brain power rather than body power, and where global competition is experienced with As a result of the gradual development, cheaper, the opportunities provided by information technologies”. widespread and economic activities of information and communication technologies in recent years, the In line with the development process of information phenomenon of “globalization” has emerged, which technologies, radical changes have occurred in the field of creates a new political, economic and cultural order. economic activities. e-Business is the integration of digital (Dursun,2003:94). Thanks to e-Business, where the technology, intellectual property and consumer developments in information technologies meet with trade, sovereignty with business activities that change and businesses create an environment where they can share usually replace traditional rules at both industry and information and interact directly with customers. company level (Li and Chang, 2004: 45). Increasing e-Business practices continue to increase in
Factors Affecting the Development of the e-Business international markets, enabling businesses to achieve Environment above-average returns as well as competitive advantage.
With the increase in the number of people using websites Every entrepreneur with ideas and skills in any business and internet users, there have been significant changes in line has the opportunity to open up to global markets with the volume of businesses that are involved in both national the effective use of the internet. In this way, the cost and international e-Business processes. These important burden of a traditional enterprise has left its place to the changes in e-Business volume; it is observed that business processes carried out by many computers, countries lead to new regulations and structural changes in making it possible for them to perform low cost business. terms of economic, social and managerial terms. For this reason, businesses have started to have a marketing approach that can appeal to global markets as e-Business has made progress in parallel with two well as the national market thanks to e-Business. There are important development processes. The first is the no market entry and exit barriers in some markets. The developments in the information and communication absence of obstacles related to entry and exit to the market
benefits from the advantages of the scale economy instead consumers to make better decisions without having to rely of the factors related to the enterprise scale. on limited evaluations (Simonson & Rosen, 2014).
The economics of electronic platforms is dominated by With the disappearance of the business-customer two intertwined features: economies of scale and network boundaries with globalization, the customer has the effects. Economy of scale occurs when the cost of opportunity to place an order by comparing the desired designing and updating a website or a suite of software product from anywhere in the world in terms of price and increases lower than the number of users and associated feature. Since the technology lifts the boundaries, since revenues, leading to an increase of return on investment the consumer can request the product he wants from and operating income. Google and Facebook provide text anywhere in the world, he does not care whether the place book examples. Their main source of revenue comes from of production is his own country or another country while targeted advertising (ads) driven by consumer’s data making the purchase (Dinç, 2018). analytics (Morites,2020:2). Choosing on the Web – The Importance of Comparing According to Ferne (1997: 10), especially the three features Facility for e-Business of e-Business have a strategic effect in playing a regulatory The increasing use of communication technologies and the role in traditional market habits. The first of these features; frequency of using marketing activities on the web now for the business owners, e-Business activities enable constitute an important factor for customers. Thanks to the products or services to find new markets in international Internet, it is possible to purchase products or services markets, making the marketing of products easier. Due to without any time or place restrictions. While previously the absence of market entry and exit barriers, it facilitates purchasing and promotion activities were carried out in access to foreign markets and thus increases globalization. the local market, these activities are now being carried out Latter; it is a new tool for the purchase and sale of non- on the Internet via the Internet. physical products with the e-Business activities of the enterprises. Thus, current differences between domestic and The Importance of Changing Organizational Culture for foreign companies disappear and a fair competition e-Business
environment between transactions is created. The third is; e-Business is an economic phenomenon and this has the internet, which initially emerged as an information brought a global dimension to the information and network and eventually enables all business transactions to commercial perceptions that organizations share. Thanks be made online, creates the opportunity to become a global to e-Business, the sharing of information has become more business and trade for every entrepreneur (Aksöz et al., widespread. Developments in information sharing and 2012: 176). communication affect the trend and direction of change inherent in information, and continuous learning becomes The Importance of Customer Orientation for e-Business an indispensable imperative for the organization and those Today, basic information about customer relations is who work. Information sharing enables us to achieve a obtained by evaluating customers’ data. e-Business larger collective result than the sum of the information that appears to be a structure suitable for personal production individuals have. Such a result means that the corporate and marketing logic (Eroğlu, 2003: 21). Another information sharing culture dominates the organization advantage of evaluating customers’ information (Türk & Aydoğan, 2008: 331). contributes to the determination of customer costs. In establishing an effective value model, it is important to The Importance of Changing Customer Relations for reach the data about the purchasing behavior of the seller e-Business
or the supplier and to carry out its activities in an Customer satisfaction and service quality have been individual customer or part of the market by adhering to frequently researched in the field of marketing in recent the cooperation with the customers. (Anderson and Narus, years. The main focus of changing the marketing approach 2002: 21). is customer satisfaction and service quality. Consumers’ behaviors, purchasing situations, dissatisfaction and The Importance of Change and Awareness in Consumer desires constitute the most important elements in Preferences for e-Business satisfying consumers (Payne & Holt, 2001: 12). There are many reasons behind changes in customer preferences and awareness of customers. One of the most Relational marketing, one-to-one marketing, data important of these is due to information technologies. marketing and electronic marketing are some of the Customers will be able to act more rationally by finding increasingly popular marketing approaches. Thanks to the opportunity to compare the product or service they these strategies, businesses find the opportunity to meet plan to purchase by easily accessing information from the demands and expectations of consumers at the most anywhere, such as brand, quality, price, feature, appropriate time and place (Ergin, 2007: 49).
accessibility. Advanced search engines, comments from e-Business in Terms of Economics other users, social media, provide easy access to the experts of the products and these features also allow With the progress of e-Business, there are various cultural and social impacts on businesses, customers and the whole
society. The Internet contributes to businesses developing the world. However, many stores are needed to establish a business activities and reshaping market positioning. retail chain. Whereas, a single store can be created through Businesses that catch e-Business awareness in the market, the web page to provide global service (Yazıcı, 2002: 98). where customers’ requests and expectations are constantly In addition, it can be easily provided to monitor trends in changing, can adapt to e-Commerce much more quickly purchased goods and to decide on the selection and and become more advantageous in competition. ordering of new products that may be of interest to the consumer (Yılmaz, 2007: 58). Thanks to e-Business, customers who have the fastest access to all kinds of information, products and services e-Business Effects on Employment and Labor Market can easily find all kinds of shopping opportunities on the The development in information technologies has also Internet without time and space limitations. e-Business affected the processes of businesses in their economic supports them to make more efficient decisions by helping activities. The collection, recording and face-to-face shorten the transaction processes for businesses and business of traditional written documents have been customers. Customers not only provide savings in terms of replaced by an electronic-based system where everything cost and time associated with obtaining information, is discussed and recorded in electronic form. e-Business products or services through e-Business activities, but also enables the emergence of creative entrepreneurs who can create more commercial return opportunities for use everywhere that the internet exists as a workplace, businesses. especially since the second half of the 1990s, with a
e-Business Effects on Competition limited budget, which can earn more income than normal markets and have the opportunity to do business on a e-Business leads to a decrease in costs for businesses, a global scale. reduction in market entry barriers. In addition, e-Business enables economic units to access information more easily e-Business Influences on Inflation and Growth and to make consumers more conscious. Under these The biggest driving force in the progress of the service conditions, the competitive environment intensifies and sector is the effective communication that has emerged in companies have to reconsider their market strategies. The information technologies. Investments in information fact that the conditions of entering the market over the technologies have shown the effects of economies in every internet are the same for each company strengthens the national and international sector. The most important competition between the companies. Thus, both small and factor in the emergence of information stems from the medium enterprises and multinational companies have process of externality (İnce, 2001: 5). equal conditions at the time of entering the market. The economic units’ adaptation to the transformation created e-Enterprise provides a cost advantage to businesses and by the internet and information technology and their easy provides a reduction effect on prices. However, when we participation in this adaptation process increase their examine the decrease in prices in terms of inflation, there chances of taking part in the global market (Yazıcı, 2002: are points that we should be careful about. Inflation may 98). fall within a certain period against the falling price with the production surplus, but this decrease ends with the e-Business Effects on Cost and Price price reaching a new level of equilibrium at a lower level.
e-Enterprise is an important factor in reducing the costs Since this is a monetary phenomenon, it cannot be and increasing the efficiency of the activities of the expected to lower inflation continuously. If the authorities enterprises (Şimşek, 2012: 62). e-Business leads to a do not change the inflation target, inflation will remain the decrease in product prices by reducing costs for same after the short-term decline. If inflation falls below businesses. While the companies supply the intermediate the targeted rate with price drops, authorities will be able goods used in production, they can easily reach the to allow rapid growth by lowering interest rates. In this cheapest raw material or intermediate goods supplier in an case, prices of goods traded via the Internet may fall, but electronic environment and make comparisons between prices of other products and services may increase faster the suppliers in terms of price and similar conditions. In than before (www.dtm.gov.tr). addition, with the e-Business activity, the distribution e-Business Effects on Productivity services that develop and get cheaper every day reduce the shipping costs of the companies. Facilitated by electronic Ease of adaptation to internet technology causes commerce in taking orders, tracking inventory records companies to gain speed in their commercial activities. results in cheaper product prices (Çak, 2002: 32). The cost advantage provided by the trade with e-Business enables companies to reach optimal sizes and increases One of the most important effects of e-Business that their competitiveness. Besides these elements, thanks to reduces costs is that the cost of preparing a web page for globalization and the internet, businesses have the e-Commerce is much cheaper than the cost of opening a opportunity to meet their needs in the cheapest way and physical store. Web pages to be accessible 24/7; It wherever they want. Taken together, the barriers to entry provides convenience in cross-border trade and is to the market are reduced (Bakırtaş & Tekinşen, 2006: important for companies in reaching all customers around 134).
As in all sectors, the contribution of e-Business to productivity is at the forefront in the service sector. Within the service sector, information technologies are used most intensely, especially in the banking sector. Thanks to customers who prefer to purchase services over the internet, especially in banking services, transaction costs are reduced and banking services can be performed more quickly. Thanks to the online services carried out over the internet, customer concentrations that may cause over- capacity work within banks can be reduced to a lesser extent. It makes it possible to differentiate services through the Internet, as in all sectors.
e-Business Effects on Development and Income Distribution
Rapid progress in information and communication technologies in the last decade of the 20th century has changed the way business and business are done, deeply affected economic and social life and accelerated economic globalization. e-Business has emerged as a result of its technological development. New products and services are rapidly recognized worldwide through virtual markets, thereby increasing production and sales revenues. With the increasing use of high technology in production, the need for qualified work force is increasing. In the field of production activities, e-Business eliminates traditional barriers to production and trade, creating new market areas for manufacturers. Production networks cross national borders and connect production units in different geographic locations with electronic networks (Kayahan, 2016: 70-71).
e-Business’s Effects on International Trade
Electronic foreign trade; production, advertisement, sales, insurance, distribution and payment transactions of goods and services through computer networks. Electronic foreign trade consists of three stages: advertising and market research, order and payment and delivery. Thanks to e-Foreign trade, the economic units at home and abroad can make product or market research quickly and efficiently using communication channels and nevertheless, they can perform all or part of the commercial transactions in an electronic environment (Erbaşlar & Dokur, 2012: 146).
Internationally, the obstacles encountered in e-Business can be listed as: the international market is not well known, the parties are in different countries, there are many brokerage firms, uncertainty and the risk is higher than the local market: (Özcan, 2000: 63). e-Business provides convenience in eliminating most of these obstacles and in maintaining foreign trade activities of entrepreneurs. In addition to the realization of e-Business, information, product or service purchasing and selling through computer networks; to create demand for the information, product or service offered (marketing), to provide customer support (at all stages of sales) and to provide commercial and logistic communication between commercial institutions and customers through global computer networks.