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is the flow of process which is purchasing, marketing, sales and customer support that is mainly associated with a mercial relationship or transaction over the inter. Laudon and Traver describe emerce as all about time cycle, speed, and globalization, enhanced productivity, reaching new customers and sharing knowledge across institution, through digitally enabled transaction across boundaries in return for products and services. Emerce evolved in various means of relationship within the business circle. It can be in the form of Business to Customer(B2C),Business to Business(B2B), Business in Business(BIB)and lastly Customer to Customer(C2C).Generally, B2B which is between organizations formed the bulk of the emerce activities. Although emerce implies information between businesses, the technology is equally applicable between business and consumers and indeed between consumers themselves. As such, the significant role of inter as the main tool in emerce is being more relevant as it also act as a distribution channel on top of involving with the task of the traditional intermediaries. Statistic revealed by Multimedia Development Corporation (MDEC) indicates the peration rate of emerce in Malaysia which is substantially increased by year provides a huge potential for SMEs to adopt emerce in their business. This rate is expected to constantly growing up at substantial rate from year to year. In electronic markets, the principal participants–transaction handlers, buyers, brokers, and sellers are at different locations and even not knowing each other. Some people think that the implementation of emerce found to be both costly and cumbersome. However, in reality it driving down cost factors and able to improve performance which offers opportunities to achieve petitive advantage through product differentiation with particular reference to branding and pricing. Other than that, it provide better avenues for enhancing cooperation between trading parties beside shortening the time in marketing the products or services. SMES and ECommerce In order to survive in today’s challenging environment, it is imperative that SMEs be petitive and resilient. Towards this end, SMEs need to continuously strengthen their capacity and capability to produce high quality products and services at petitive prices. Previous studies conducted among Malaysian Bumiputera SMEs indicated that they were weak in product, promotion, and distribution innovation which therefore reflecting the poor performance of the SMEs. Previous literatures used to define SMEs from different perspectives such as defining based on number of employees, paidup capital, sectors of operations, and also the intensity of investment incurred. As such there is no one acceptable standard about defining SMEs. However, there are a few measurements that they may take into consideration such as its categories, sales turnover and number of employees. In Malaysia, the most widely adopted definition usually those as been defined by SMIDEC (Small and Medium Development Corporation) and BNM (Bank Negara Malaysia) whereby SMEs can be grouped into three categories: Micro, Small, or Medium. These groupings are decided based