Business Administration Project Topics

An Analysis of the Social and Economic Impact of E-Commerce




Background of the study

With the introduction of technologies such as electronic bank transfers, E-commerce became popular roughly two decades ago. Electronic data exchange (EDI) made it available to manufacturers, retail dealers, and other businesses. Its usage continued to grow in a variety of industries, including stock market operations, vacation bookings, and so on ( Shapiro,1999).

E-commerce refers to the practice of doing business through the Internet. Despite the fact that it is a relatively new idea, it has the ability to change the conventional way of doing business. It already has an impact on huge industries like communications, banking, and retail, and it has potential in fields like education, health, and government. The strongest consequences may be connected with less apparent, but possibly more widespread, effects on ordinary business processes, rather than many of the aspects that get the most attention (i.e. tailored product, removal of intermediaries) (i.e. ordering office supplies, paying bills, estimating demand). The Internet’s birth and meteoric rise have sparked promises of a “new economy” regulated by a “new economics.” Economists seldom agree with such arguments, pointing out that core microeconomic and macroeconomic concepts remain valid. ‘Fortunately, history can still be our guide, although we can’t depend much on the classical model of perfect competition and price-setting enterprises, we don’t need a fundamentally new economics,’ writes Shapiro (1999). ‘Even while technology evolves at a breakneck pace, the economic concepts we depend on are resilient,’ Shapiro and Varian (1999) write. While the core economic concepts remain the same, e-commerce and the Internet have drastically transformed business cost structures and increased the prominence of some economic phenomena, such as network economics. According to Shapiro (1999), “networks, interconnectedness, and leverage are not new phenomena, but they are becoming more significant.” While the prevalence of network effects may not represent new economics or even a new economy, there is little doubt that a significant and irreversible break with the past has occurred. As a result, there are considerable ‘network effects’ or demand side scale economies in business. Although network effects are not new, they are particularly prevalent in the internet economy (Shapiro 1999). ‘The old industrial economy was driven by economies of scale; the new information economy is driven by economies of networks,’ write Shapiro and Varian (1999). Furthermore, E-commerce provides less developed nations with unique potential to grow their markets both within and outside. Externally, the Internet and other technologies may make it possible for small, local enterprises to engage in low-cost international commerce. Internally, many residents who were previously labeled “marginalized” and “unbanked” may be able to get inexpensive financial services, allowing them to engage more freely in all parts of the economy. On the social front, E-commerce has certain intangible disadvantages. Individuals who have less and less direct contact with their classmates, coworkers, and community may “de-socialize” as a result of more “virtual” connection within rural communities. This may also affect family relationships, especially if technology exacerbates the divide between those who are “on-line” and those who do not have access to these tools. On the other side, a more fair distribution of infrastructure and educational resources might help to retain and strengthen family and community relationships that would otherwise be shattered by distance and expense. Furthermore, in every economy, e-commerce has a significant economic and social influence. It has a huge potential to change an economy’s economic operations and social environment. It has an impact on a variety of industries, including communication, finance, and retail commerce. It also has potential in fields including health, education, and governance. Any contemporary economy’s growth, wealth, and competitive advantage are heavily reliant on new technological innovation. E-continued commerce’s rise is predicted to have a significant influence on the structure and operation of economies at all levels, as well as a macroeconomic impact. Sharma, S. K., 2005. According to Sharma (2016), electronic commerce entails more than merely purchasing and selling items over the internet. It also includes the full online process of creating, promoting, selling, delivering, maintaining, and paying for items and services.

Read Too:  The Influence of Emotions Displayed and Personal Selling on Customer Behaviour Intention

 Statement of the problem

According to (Makame, 2014), various online marketplaces or e-businesses are forming in Nigeria nowadays. Konga, OLX, Jumia, and Taxify are just a few of them. Uber transportation services, e-ticketing for events or flights, and university entrance e-payment systems are just a few examples. For payment transactions across devices, applications, and other payment methods, these local ebusiness or E-commerce platforms depend entirely on online or electronic payment systems. These facts are supported by the BOG’s (2016) study, which reveals that the value and volume of electronic transactions (e-transactions) in Nigeria increased exponentially towards the conclusion of the period.

In Nigeria, mobile telephony has practically reached every corner of the nation, and broadband internet connection is available in a variety of locales. Nigeria can now brag of successfully embracing the contemporary digital world, with over 1.2 million individuals having registered and confirmed their addresses using the National Identity Card system. In addition, Nigerians can now renew their national health insurance, cards, driving licenses, register cars, conduct business online, and obtain a passport in just a few minutes from the comfort of their own homes, without the uncertainty that used to come with attempting to complete any of these tasks. Internal factors influencing e-commerce adoption in Nigeria included perceived benefits of technology, a lack of qualified staff, and limited resources, while external factors included a limited number of Internet Service Providers (ISP), a lack of online payment process, and limited availability of online banking services (Makame, Kang, & Park, 2014).


 Objective of the study

The primary objective of the study is as follows

1)        To evaluate the challenges of E- commerce in Nigeria.

2)        To examine the economic impact of E- commerce in Nigeria.

3)        To find out the social impact of E- commerce in Nigeria.

4)        To investigate the socio-economic conditions underpinning e-commerce in Nigeria.

Research Questions

The following questions have been prepared for this study

1.        What are the challenges of E- commerce in Nigeria?

2.        What are the economic impact of E- commerce in Nigeria?

3.        What are the social impact of E- commerce in Nigeria?

4.        What are the socio-economic conditions underpinning e-commerce in Nigeria?

 Significance of the study

This study focuses on  the social and economic impact of e-commerce. Hence the  study will be significant as it will help to establish the major social and economic conditions  that are positive or negative for e-commerce industry players to adopt or tab. It will also serve as  a repository for which knowledge regarding e-commerce and the extent to which it has been adopted or accepted in Nigeria.

The study will also be of benefit to the academic community as it will contribute to the existing literature.

 Scope of the study

This study will evaluate the challenges of E- commerce in Nigeria. The study also examine the economic impact of E- commerce in Nigeria. The study will further find out the social impact of E- commerce in Nigeria. Lastly, the study will investigate the socio-economic conditions underpinning e-commerce in Nigeria. Hence the study will be delimited to Jumia Nigeria.

Limitation of the study

This study was constrained by a number of factors which are as follows:

just like any other research, ranging from unavailability of needed accurate materials on the topic under study, inability to get data

Financial constraint , was faced by  the researcher ,in getting relevant materials  and  in printing and collation of questionnaires

Time factor: time factor pose another constraint since having to shuttle between writing of the research and also engaging in other academic work making it uneasy for the researcher

 Definition of terms

Commerce: electronic commerce (ecommerce) refers to a business model that allows companies and individuals to buy and sell goods and services over the Internet.



WeCreativez WhatsApp Support
Welcome! We are online and ready to help you via WhatsApp chat. Let us know if you need our assistance.