INTRODUCTION TO E- BUSINESS
The proliferation of the Internet has provided a unique opportunity for small and medium-size enterprises (SMEs) to conduct business electronically, to be more competitive, and to do business in a global environment. Implementing e-business and having an online presence can be beneficial for many companies
with adequate preparation prior to implementation. The Internet usage in the European Union and Sweden grew by 147 and 68%, respectively between
2000 and 2005. About half the populations in the European Union member states and 75% of the Swedes use the Internet (Internet Usage in Europe (2006).
Internet-based electronic business can be defined as a system that provides businesses with a platform to connect with customers, business partners,
employees, and suppliers via the Internet, extranets, and intranets. The internal and external connectivity of electronic business enables companies to
become more efficient by lowering costs, increasing productivity, and accomplishing business goals faster. In addition, responsiveness to customer
needs, communications with businesses, and supplier relations and selection can be improved.
E- BUSINESS IN MANUFACTURING SERVICES STRUCTURE
The organizational structure of manufacturing and service organizations differ greatly in comparison and these sectors have different motives for implementing
e-business. While a service organization is concerned with advertising their competence and abilities, a manufacturing organization is more concerned
with getting their product out in the market for consumers. The service sector lacks the tangible products that a manufacturing firm possesses; therefore, they must create their name through exceptional customer service. Manufacturing companies need to research, develop, and promote a quality product that has premium after purchase warranties along with good customer service. Collaborative planning between the manufacturer and the supplier, distributor, and retailer is an essential part of the manufacturing strategy. For this reason, the use of collaborative tools in manufacturing organizations has increased with the introduction of the Internet and e-business applications. Implementing e-business can be expensive and if it fails, a company loses the time and money invested in the project and to an SME the failure could result in financial ruins.
The primary objective of this research is to examine the impact of the Internetbased e-business on the Swedish SMEs. The major research objectives are:
- To decide the extent of electronic business integration and applications in Swedish SMEs.
- To determine the length of implementation time and the degree of satisfaction with e-business.
- To identify similarities and/or differences that exists between manufacturing and service SMEs with regard to the implementation and applications of electronic business.
- To determine the common concerns of SMEs in the implementation and applications of electronic business.
TO DECIDE IN THE BENEFIT OF ELECTRONIC BUSINESS SMEs
In this study, we adopted the European Commission’s definition of SME; that is, any firm that employs less than 250 employees. However, firms with
employees of less than ten, very small, were excluded and considered not suitable for this research. Data was solicited from 500 randomly selected,
Swedish companies having between 10 and 249 employees without regard to their location or industry for analysis. A four-page survey questionnaire with a
cover letter explaining the objectives of the study, and a return envelope was mailed to these SMEs. The total number of usable responses after two mailings
was 132 (26.4%). However, 58 (11.6%) of the surveyed firms indicated they do not have an Internet-based e-business and 74 (14.8%) do. 3.1 Demographics of the survey group
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