The impact of new business to increase efficiency

They found that e-commerce increases productivity and consumer surplus but not necessarily business profits. Barua et al. concluded that the productivity gains from e-commerce investments have generally been neutral or negative, while Tallon, Kraemer, and Gurbaxani (2000) measured e-commerce payoffs through perceptual measures and argued that executives rely on their perceptions in determining whether a particular e-commerce investment creates value for the firm. The majority of the research has proposed a direct causal link between e-commerce investment and firm performance. However, Li and Ye (1999) empirically tested the moderating effects of environmental dynamism, firm strategy, and CIO/CEO relationship on the effect of e-commerce investment on firm performance and found that e-commerce investment appears to have a stronger positive impact on financial performance when there are greater environmental changes, the strategy of the company is more proactive, and there are closer CIO/CEO ties. In a similar line of inquiry, Lee (2001) created a multi-level value model that connects the use of e-commerce to a firm’s profit; she pointed out that the effect of incorporating e-commerce should not be considered alone and argued that there are other variables that can influence the relationship. Her e-commerce business value model (Lee, 2001) incorporated other variables, such as origination cost, cycle time, loan officer retention, control over external partners, and marketing effort and she found that e-commerce can reduce cycle time and cost, and change the way business is run.

Keywords:

E-Commerce , Iran , E-Government , Information Communication Technology , Developing Countries