Abstract
The potential of the Internet to reach a large and growing body of customers, coupled with low communication costs, makes it a very attractive business medium to many organizations. Although there is significant interest in the use of the Internet for business purposes, studies articulating issues that can guide business managers in its use are lacking. The purpose of this study is to examine the issue of business activity on the Internet and report the results of a survey on the ways in which businesses are making use of Internet-based information systems (IIS). In addition, the study investigates the relations between the implementation and performance of an IIS to examine its potential to provide benefits to IIS adopters. A total of 120 usable responses were obtained. This paper identifies pertinent issues and problems that are critical in developing an IIS. The results also show that volume sophistication and information contents in an IIS partially affect the extent of cost savings, financial performance, and service improvement.
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Appendix
Appendix
Questionnaire
Respondents answer the extent to which they agree or disagree with each statement about controls. The seven-point Likert type scales are used except some items for size and IS sophistication. The responses were recorded by the person conducting the interview.
1. System objectives
(1) Please select only one category that your IIS belongs to.
1. IIS that provides company information including some information about products or services.
2. IIS that provides company information including some information (e.g., price details) about products or services. However, only conventional purchasing is possible.
3. IIS that provides company information including some information (e.g., price details) about products or services and on-line purchasing facilities. However, billing occurs conventionally.
4. IIS that provides company information including some information (e.g., price details) about products or services and on-line purchasing and billing facilities.
5. IIS that provides information on specific business purpose.
6. IIS that provides an intermediary role between various parties (e.g., consumers, business organizations).
(2) Please select the main purpose of your IIS system.
1. IIS enables consumers to shop for and buy products and services (e.g., shopping mall system, on-line selling system).
2. IIS intermediates traders to perform business contract with each other (e.g., Internet-based stock trading systems, Internet banking system, and on-line auction system).
3. IIS just provides information (e.g., stock prices, tour information) for business purposes.
2. Implementation
(1) Volume
The proportion (%) that a company uses IIS. Business transactions can be processed using other complementary means such as e-mail, fax, or phone. It is measured as the proportion that a firm's information exchange and processing are handled through IIS.
(2) Sophistication
IIS provides sophisticated authentication service (e.g., digital signature) for the security of transaction data.
It is very easy to order products.
IIS greatly provides video image in interface display.
Transaction data can be directly processed within four applications (payment system, customer database system, accounting system, logistics, and inventory system) without human intervention.
(3) Information contents
IIS provides sophisticated product browse function.
IIS provides sophisticated functions that search products/services using various conditions.
IIS provides much company information.
IIS provides much information concerning maintenance and use of products/service.
3. Performance
(1) Cost savings
The use of IIS helps to reduce labor costs.
The use of IIS helps to reduce communication costs.
The use of IIS helps to reduce hardware usage costs.
The use of IIS helps to reduce system maintenance costs.
(2) Financial performance
The use of IIS helps to increase profitability.
The use of IIS helps to increase sales significantly.
(3) Service improvement
The use of IIS helps to provide new products/service/information to customers.
The use of IIS helps to provide better products/service/information to customers.
The use of IIS helps to foster a closer relationship between our firm and customers.
The use of IIS has enhanced the trust of customers toward our firm.
The use of IIS helps to improve firm image.
The use of IIS helps to promote our firms' products/service/information.
The use of IIS helps to present information of products/service/information goods in a format that better satisfies customer needs.
The use of IIS helps to increase the promptness of order requests.
The use of IIS helps to improve information for predicting market trends.
The use of IIS helps to capture the requirements of various customers for products/services/information.
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Lee, S. Business use of Internet-based information systems: the case of Korea. Eur J Inf Syst 12, 168–181 (2003). https://doi.org/10.1057/palgrave.ejis.3000460
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DOI: https://doi.org/10.1057/palgrave.ejis.3000460