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ecommerce 1).docx - Effect of E-Commerce on the Finical...

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Effect of E-Commerce on the Finical Performance Introduction These review covers give the study a theoretic perspective. Two major theories are covered in the study, and they are the Technological, organizational and environmental model and the Resource-based view theory. We will also look into studies done on IT and e- commerce and show how financial performance has been measured. Theoretical Review Given technological advancements, e-commerce becomes an unfolding phenomenon because of the many days to day changes. Diffusion of Information technology and information systems has led to the development of various theories due to technological innovations. The popular areas studied are on adoption and usage of different types of technologies such as electronic fund transfer (EFT), electronic data interchange (EDI), enterprise resource planning, adoption drivers, adoption barriers, and hindrances. Later on, the emphasis was laid mostly on e-commerce adoption, and thus the TOE and the corresponding RBV theories were used in relation to the research. Technological, Organisational and Environmental Model The model was developed to evaluate technology adoption. The theory identifies three aspects that influence the process of adopting, implementing and using technological innovations. They are; a. Technological context, it describes both existing and new technologies such as
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