Embed Size (px)
Citation preview
2009:038
M A S T E R ' S T H E S I S
E-Business Adoption in theBanking Industry in Ghana
Emma Anamuah-Mensah Georgia Marfo
Luleå University of Technology
Master Thesis, Continuation Courses Marketing and e-commerce
Department of Business Administration and Social SciencesDivision of Industrial marketing and e-commerce
2009:038 - ISSN: 1653-0187 - ISRN: LTU-PB-EX--09/038--SE
i
To God Be The Glory Great Things He Has
Done!
ii
iii
ACKNOWLEDGEMENTS
To God Almighty and Our Lord and Saviour Jesus Christ.
We express our profound and deepest gratitude to you. Your grace and mercy have
enabled us to make this milestone. Our reverence to you Father.
To Dr. Anne.Engstrom - our wonderful supervisor
We owe you a special debt of gratitude for your excellent guidance, thorough
supervision and positive criticism that has engineered the production of this work. We
salute you madam! We say God richly bless and increase you abundantly.
To the Staff of the four sampled banks
Our deepest appreciation for your time, efforts and inputs for being used as the case
study in this study. You have our respect Sirs! God bless you all.
To Dr. Kwame Adam- our Friend and Proof Reader
We say special thanks to you for all your energy, time, efforts and contributions. God
bless you.
Finally, to all who shared a word or two with us, encouraged, prayed and supported us
in diverse ways to assist us complete successfully this thesis, we say our Almighty God
bless you with your heart desires for you have helped us to achieve ours.
God Bless Everyone.
While we share the credit of this thesis with all the above-mentioned people,
responsibility for any errors, shortcomings or omissions in this work is solely our own.
iv
DEDICATION
This thesis is dedicated to our husbands;
Mr. Ebow Amanuah Mensah & Mr. Emmanuel Coffie
For Your Love and Support
v
ABSTRACT
This thesis is based on a case study of four banks, in Ghana; two private and two state
banks. The study only sought to examine the adoption of e-Business in the Ghanaian
banking industry with respect to the expected benefits derived by adopting e-business,
the barriers that prevent firms from taking advantage of e-business adoption and the
challenges firms encounter when adopting e-business. The study idea was conceived on
the premise that businesses are always looking for ways of improving their products
and services deliveries and will thus be useful to understand how the adoption of e-
Business can benefit the banking industries in Ghana that is seen to be in the fore-front
of national development. The researchers also wanted to understand how electronic
commerce as a new way of doing business can be introduced effectively in the
Ghanaian banking business especially with the understanding that E-business involves
the fundamental reengineering of business model into a internet based networked
enterprise.
The result of the study indicated that the benefits of e-business are well known to the
banks and represent a formidable force to drive the adoption by many banks in Ghana.
The benefits of e-business are experienced whether or not the bank is state or private.
The various areas where the banks are preparing to use e-business approach includes
familiar and relatively mature electronically-based products in developing markets,
such as telephone banking, credit cards, ATMs, and direct deposit. This means that
most of the banks have recognized the need to change their business process to conform
to changing business trends in order to keep up with competition. Despite the perceived
and experienced benefits of e-business in Ghanaian banking, they also identified
vi
several barriers and challenges that could be described as: economic; technical and
technological; ethical and institutional; and socio-cultural. The results also revealed that
the banks consider technology as the most important challenge to the effective adoption
of e-service in the banking industry in Ghana. The study provides some
recommendations towards improving e-business adoption in Ghanaian banks
vii
TableofContents
ACKNOWLEDGEMENTS ............................................................................................................................. IIIDEDICATION ..................................................................................................................................................IVABSTRACT .......................................................................................................................................................VTABLEOFCONTENTS................................................................................................................................VIITABLEOFTABLES........................................................................................................................................IXCHAPTER1: INTRODUCTION................................................................................................................. 11.1. BACKGROUND......................................................................................................................................................... 11.2. PURPOSEOFSTUDY ............................................................................................................................................... 41.3. RESEARCHQUESTIONS.......................................................................................................................................... 41.4. SIGNIFICANCEOFTHESTUDY.............................................................................................................................. 51.5. SCOPEANDLIMITATIONOFSTUDY.................................................................................................................... 5
CHAPTER2: LITERATUREREVIEW ..................................................................................................... 72.1. THEEVOLUTIONOFE‐BUSINESS........................................................................................................................ 72.2. DEFININGE‐BUSINESS.......................................................................................................................................... 72.3. E‐BUSINESSADOPTION......................................................................................................................................102.4. BENEFITSOFE‐BUSINESSADOPTION .............................................................................................................122.5. BARRIERSTOE‐BUSINESSADOPTION.............................................................................................................142.6. CHALLENGESRELATEDTOTHEADOPTIONOFE‐BUSINESS .......................................................................14
CHAPTER3: CONCEPTUALFRAMEWORK .......................................................................................163.1. INTRODUCTION ....................................................................................................................................................163.1.1. BenefitsofEBusiness ................................................................................................................................ 163.1.2. BarrierstoEBusinessAdoption........................................................................................................... 163.1.3. ChallengesofEBusinessadoption ...................................................................................................... 17
3.2. SUMMARIZATIONOFTHEORIES,CONCEPTSANDFRAMEOFREFERENCEINLINEWITHRESEARCHQUESTIONS.........................................................................................................................................................................173.2.1. ResearchQuestionOne:Whatarethebenefitsthatmaybederivedbyadoptingebusiness ............................................................................................................................................................................ 173.2.2. ResearchQuestionTwo:WhatarethebarrierstotheadoptionofebusinessinbanksinGhana........................................................................................................................................................................... 183.2.3. ResearchQuestionThree:Whatchallengesdobanksfaceinadoptingebusiness........ 19
CHAPTER4: METHODOLOGY ..............................................................................................................224.1. INTRODUCTION ....................................................................................................................................................224.2. RESEARCHPURPOSE ...........................................................................................................................................234.3. RESEARCHAPPROACH........................................................................................................................................234.3.1. StrategiesforResearch............................................................................................................................. 244.3.2. StudyArea ...................................................................................................................................................... 25
4.4. TYPEOFDATAANDDATACOLLECTION .........................................................................................................264.4.1. Typeofdata ................................................................................................................................................... 26
4.5. DATACOLLECTION ..............................................................................................................................................274.5.1. SampleSelection.......................................................................................................................................... 274.5.2. EmpiricalData ............................................................................................................................................. 274.5.3. Secondarydata............................................................................................................................................. 274.5.4. ResearchProtocolsandCasestudydatabase ................................................................................ 28
4.6. DATAANALYSIS ...................................................................................................................................................284.6.1. MethodofAnalysis ...................................................................................................................................... 29
viii
4.7. QUALITYDATA.....................................................................................................................................................304.7.1. ValidityandReliability ............................................................................................................................. 304.7.1.1. Validity........................................................................................................................................................................................ 30
4.7.2. Reliability........................................................................................................................................................ 31CHAPTER5: CASESTUDYANALYSIS .................................................................................................325.1. INTRODUCTION ....................................................................................................................................................325.2. GENERALDESCRIPTIONOFBANKINGINGHANA...........................................................................................325.3. INDIVIDUALCASEANALYSIS ..............................................................................................................................345.3.1. CaseOne:EcobankGhanaLtd. .............................................................................................................. 345.3.1.1. E‐businessAdoptioninEcobankGhanaLtd. ............................................................................................................. 355.3.1.2. Benefitsofe‐businessadoptioninEcobankGhana ................................................................................................ 355.3.1.3. Barrierstotheadoptionofe‐businessinEcobankGhana. .................................................................................. 355.3.1.4. Challengesintheadoptionofe‐businessinEcobank. ........................................................................................... 35
5.3.2. CaseTwo:StanbicBankGhanaLimited(SBG)............................................................................... 365.3.2.1. E‐businessAdoptioninStandbicBankGhana(SBG) ............................................................................................. 365.3.2.2. Benefitsofe‐businessadoptioninStanbicBankGhana ....................................................................................... 365.3.2.3. Barrierstotheadoptionofe‐businessinStanbicBankGhana(SBG)............................................................. 365.3.2.4. Challengesintheadoptionofe‐businessinStanbicBankGhana(SBG)........................................................ 37
5.3.3. CaseThree:AgriculturalDevelopmentBank(ADB).................................................................... 375.3.3.1. E‐businessAdoptioninAgriculturalDevelopmentBank..................................................................................... 385.3.3.2. Benefitsofe‐businessadoptioninAgriculturalDevelopmentBankLtd....................................................... 385.3.3.3. Barrierstotheadoptionofe‐businessinAgriculturalDevelopmentBankLtd ......................................... 385.3.3.4. Challengesintheadoptionofe‐businessinAgriculturalDevelopmentBank(ADB) .............................. 38
5.3.4. CaseFour:GhanaCommercialBank .................................................................................................. 385.3.4.1. E‐businessAdoptioninGhanaCommercialBankLtd............................................................................................ 395.3.4.2. Benefitsofe‐businessadoptioninGhanaCommercialBankLtd ..................................................................... 395.3.4.3. Barrierstotheadoptionofe‐businessinGhanaCommercialBankLtd ........................................................ 395.3.4.4. Challengesintheadoptionofe‐businessinGhanaCommercialbankGhana ............................................. 40
5.4. CROSSCASEANALYSIS .......................................................................................................................................405.4.1. Crosscaseanalysis ...................................................................................................................................... 405.4.2. BankingBusinessCharacteristicsinGhana..................................................................................... 405.4.2.1. BankageandRegionalcoverage..................................................................................................................................... 405.4.2.2. Typeandlocationofcustomers....................................................................................................................................... 435.4.2.3. Reasonsforapplyinge‐business ..................................................................................................................................... 435.4.2.4. E‐servicesandproducts...................................................................................................................................................... 43
5.4.3. CrossAnalysisofBenefitstotheadoptionofEbusiness............................................................ 435.4.4. CrossAnalysisofBarrierstotheadoptionofEbusiness ........................................................... 45
5.5. CROSSANALYSISOFPERCEIVEDCHALLENGESINTHEADOPTIONOFE‐BUSINESS. .................................47CHAPTER6: CONCLUSIONSANDRECOMMENDATIONS..............................................................496.1. BENEFITSTHATMAYBEDERIVEDBYADOPTINGEBUSINESS ........................................................................496.2. BARRIERSTOTHEADOPTIONOFEBUSINESSINBANKSINGHANA ...............................................................506.3. CHALLENGESTHATBANKSFACEINADOPTINGEBUSINESS ...........................................................................506.4. SUMMARY..............................................................................................................................................................526.5. RECOMMENDATIONS...........................................................................................................................................53
REFERENCES .................................................................................................................................................55APPENDIX ......................................................................................................................................................72
Table of Figures
Figure 2-1: Classification of e-business and e-commerce (adapted from EC 2007) .................8 Figure 3-1: Emerged frame of reference..................................................................................21 Figure 5-1: Ghana map inserted with the Regional distribution of banks and Numbers
showing human population density per square kilometer.................................................42
ix
TableofTables
Table 3-1: A table showing research questions and theories used to answer. .........................20 Table 5-1: Description of the four selected Banks in Ghana ...................................................33 Table 5-2: Benefits of e-business adoption, derived from literature review............................44 Table 5-3: Benefits of e-business adoption, additional findings..............................................45 Table 5-4: Barriers to e-business adoption, derived from literature review ............................46 Table 5-5: Challenges of e-business adoption, derived from literature review .......................48 Table 5-6: Challenges of e-business adoption AdditionalFindings .........................................48
Page 1
Chapter1: Introduction
1.1. BackgroundInformation and Communication Technologies (ICTs) have become an essential part of
our lives. In the past decade, the use of ICT throughout society really took off with the
introduction of the Internet. The Internet started mainly as a network for researchers
that gave the opportunity to share information and ideas. An important step in the
commercialization of the Internet was the announcement of the World Wide Web
(www) in 1991 by Tim Berners-Lee of CERN (Kalakota and Whinston, 1996).
Today, because the Internet can facilitate the quick and efficient movement of
information among trading partners at a greatly reduced cost, (Ministry of Commerce
Barbados, 2005), business via the internet or electronic commerce (E-Commerce) has
become one of the principal means of doing business.
In the World Trade Organization (WTO) Work Programme, E-Commerce is
understood to mean the production, distribution, marketing, sale or delivery of goods
and services by electronic means. Broadly defined, electronic commerce encompasses
all kinds of commercial transactions that are concluded over an electronic medium or
network, essentially, the Internet. Electronic Commerce is a new way of doing
business. According to Payne (2003) it is transacting or enabling the marketing, buying,
and selling of goods and/or information through an electronic media, specifically the
Internet.
Recently authors have begun to delineate more explicitly a difference between e-
commerce and e-Business. E-commerce is emerging as the term used when discussing
the process of transacting business over the Internet. E-Business, on the other hand,
involves the fundamental reengineering of the business model into an Internet based
networked enterprise. The difference in the two terms according to most authors is the
degree to which an organization transforms its business operations and practices
Page 2
through the use of the Internet (Hackbarth & Kettinger 2000;
Mehrtens et.al. 2001; Poon 2000; Poon & Swatman, 1997).
In this study, we will use e-business to describe all electronically based exchanges of
goods, services and information.
According to Basu and Muylle (2007), E-Business has dramatically changed how
companies’ business processes are implemented and has also enhanced industry
structure and shifted the balance of power between corporations and their suppliers and
customers. According to them, companies in every industry have had to evaluate the
opportunities and threats presented by e-Business. By thinking strategically about e-
Business, managers can select technological solutions that support the company’s
business strategies and create value for the company and its customers (Cote et al,
2005).
The Internet is driving the new economy by creating unprecedented opportunities for
countries, companies and individuals around the world. Today CEOs worldwide
recognize the strategic role that the Internet plays in their company’s ability to survive
and compete in the future. (Al-Mudimigh, 2007). Indeed, currently businesses
everywhere need to understand the if,whenand how to use electronic commerce. In
some industries, businesses are learning now that this is no longer an option to
consider, but a requirement for survival. The reach of the underlying information and
communication technologies (ICT) making electronic commerce possible is also
causing unprecedented globalization of business. Businesses in developing countries
will soon be affected as significantly as those elsewhere (Payne, 2003). In this respect,
Kofi Annan former UN Secretary General opined that, the ability of developing
countries to adopt e-business can be another opportunity for accelerate economic
growth and development.
However, according to research conducted, companies and the private sector in Africa
have not been active initiators of e-commerce. For example, a survey in Ghana (part of
a Ghana SCAN-ICT study)1 revealed that about 65% of ICT companies do not have a
1 http://www.uneca.org/aisi/ScanGhana/presentations/The%20Ghana%20Scan-Workshop%20Programme-Final.pdf
Page 3
presence on the Internet and 84% reported that they were not involved in e-commerce.
(Opoku Mensah et al, 2005)
Though there are a growing number of examples of the use of ICT for electronic
business (e-Business) in developing countries the effects to date are small compared to
what is expected to occur (UNCTAD Report, 2002)2.
As the economy of Ghana is picking up the service industry especially the banking
industry are extending their national and regional coverage to be able to provide the
needed financial service. In this development it is expected that the use of the internet
would facilitate the adoption of e-business in the Ghana banking industry as a means of
offering fast, flexible, and cost-effective ways of doing business as well as enhance
their competitiveness. This state of development will be important especially as volume
of trade increases and Ghana and other developed countries require fast transfers of
monies, payments across continents, and many other services that promote growth of
business (Al-Mudimigh, 2007).
As with most developing countries that have pursued economic and structural reforms,
Ghana has been undergoing a process of financial sector restructuring and
transformation as an integral part of a comprehensive strategy for some time (Acquah,
2006). According to Bawumia (2007) banks in Ghana will need to reinvent themselves
in this new conducive but challenging environment. This is important because
electronic transactions will continue to grow and only countries that make a move
towards embracing e-Business will participate in this revenue generation (Akoh, 2001).
Banking in Ghana is one of the industries being radically transformed by ICT
(Frempong, 2007). For example most banks within the main cities of Ghana now
employ cutting edge technologies to roll out their products to their Ghanaian customers.
(Bawumia, 2007).
Banks today are becoming increasingly aware of both the threat and the opportunity
that the Web represents. ICT- mediated services such as automatic teller machines,
electronic fund transfer, electronic smart cards, cell phone banking among others, are
2 UNCTAD Report: "Developing world looks to e-Business for growth" http://www.apnic.net/mailing-lists/s-asia-it/archive/2002/11/msg00048.html
Page 4
transforming the traditional ways of banking and providing competitive edge for banks
that provide those services (Frempong, 2007). But, to be competitive in the Internet
economy, companies need to harness the power of the Internet successfully (Al-
Mudimigh, 2007) hence it is important to understand the benefits, barriers and
challenges related to companies’ adoption of e-business.
1.2. PurposeofstudyIn Ghana banking is one of the service industries crucial to the growth of its emerging
economy. Banking is important in the role it plays in capital mobilization and granting
of financial facilities that is crucial to business development and growth. As businesses
always need to find ways of improving its products and services deliveries it will be
useful to understand how the adoption of e-Business can benefit the banking industry.
The purpose of this study therefore is .to describe the status of adoption of e-business in
banks in Ghana as a means of identifying their special needs for enhancing the
adoptions processes.
The specific objectives to be achieved are to:
• identify the benefits of e-business to the banking industry in Ghana;
• explore barriers to the adoption of e-business in banks in Ghana; and
• describe the challenges encountered in the adoption of e-business.
1.3. ResearchquestionsThe research questions to be addressed by this study will be:
o What are the benefits that may be derived by adopting e-business
o What are the barriers to the adoption of e-business in banks in Ghana,
o What challenges do banks face in adopting e-business
Page 5
1.4. SignificanceoftheStudyThe significance of this study can be seen in the fact that the outcome can be applied in
the development of national policy framework as a guide for e-Business adoption,
which is relevant to the national policy of using the banks to facilitate economic and
social growth. In this respect the study will improve our understanding of the following
issues as they apply in the Ghanaian situation.
o The relevance of e-Business in banking for a developing country like Ghana
o Expected benefits derived by adopting e-business
o The barriers that prevent firms from taking advantage of e-business adoption
o The challenges firms encounter when adopting e-business
1.5. ScopeandLimitationofStudy
In this study, it is assumed that e-Business concerns the recognition of business
opportunities that are based on ICT. The exploitation of these opportunities for e-
Business gives a competitive edge. This study focuses on the ability of firms to
discover and exploit opportunities based on ICT. Again, the emphasis is not on the
processof opportunity recognition itself. Rather, the result (the expected e-Business
benefits) is related to a firm’s ability to recognize opportunities and the benefits it
brings. In other words, which firm characteristics explain the recognition of
opportunities for e-Business leading to its adoption?
This study will only examine the adoption of e-Business in banking with respect to
their;
o benefits
o barriers
o challenges
Page 6
Due mainly to time and budgetary constraints this research will cover only four banks.
Two of which are state-owned banks located in Kumasi, the second largest city and the
other two which are private-owned banks located in Accra, the capital of Ghana.
Page 7
Chapter2: LiteratureReview
In chapter One we set out the outline of our study, stating the pursopse, specific
objectives, scope of study and research questions. In this chapter we present from a
literature survey existing views, knowledge and other information relevant to the theme
of this study but more importantly to the objectives and research questions set for this
study. This literature review was also conducted to help put the research methodology
in a better conceptual framework. In this regard the review focused on: the evolution
and definition of e-business; processes of e-business adoption; benefits, barriers and
challenges to e-business adoption.
2.1. TheEvolutionofe‐BusinessE-Business probably began with electronic data interchange in the 1960s (Zwass,
1996). However, (Melão, 2008) suggests that it was only in the 1990s, primarily via the
Internet, that e-Business has emerged as a core feature of many organizations. In his
opinion, the hope was that e-Business would revolutionize the ways in which
organizations interact with customers, employees, suppliers and partners. Some saw e-
Business as part of a recipe to stay competitive in the global economy.
2.2. Defininge‐BusinessThe term “e-Business” has a very broad application and means different things to
different people. Furthermore, its relation with e-commerce is at the source of many
disagreements. (Melão, 2008) Some authors view e-Business as the evolution of e-
commerce from the buying and selling over the Internet, and argue that the former is a
subset of the latter.( Turban et al., 2006). Others defend that, although related, they are
distinct concepts (Laudon and Traver, 2008). Others use both terms interchangeably to
mean the same thing (Schneider, 2002). (Kalakota and Robinson, 2000) proposed a
definition of e-business that clearly stresses the difference between e-commerce and e-
Page 8
business. More precisely they assume that “e-business is not just about e-commerce
transactions or about buying and selling over the Web; it is the overall strategy of
redefining old business models, with the aid of technology, to maximize customer value
and profits”. Kalakota and Robinson’s definition is of great importance because it
describes e-business as an essential business-reengineering factor that can promote
company’s growth. (European Commission, 2007)
Recently authors have begun to delineate more explicitly a difference between e-
commerce and e-Business. E-commerce is emerging as the term used when discussing
the process of transacting business over the Internet. E-Business, on the other hand,
involves the fundamental reengineering of the business model into an Internet based
networked enterprise. While e-business refers to more strategic focus with an emphasis
on the functions that occur using electronic capabilities, e-commerce is a subset of an
overall e- business strategy. E-commerce aims at adding revenue streams using the
World Wide Web or the Internet to build and enhance relationships with clients and
partners. Often, e-commerce involves the application of knowledge management
systems. On the other hand, e-business involves business processes that span through
the entire value chain: electronic purchasing and supply chain management, processing
orders electronically, handling customer service and cooperating with business
partners. E-business can be conducted using the Web, the Internet, intranets, extranets,
or some combination of these (European Commission, 2007).
Figure 2-1: Classification of e-business and e-commerce (adapted from EC 2007)
Page 9
The difference in the two terms according to most authors is the degree to which an
organization transforms its business operations and practices through the use of the
Internet (Hackbarth & Kettinger, 2000; Mehrtens et.al., 2001; Poon, 2000; Poon &
Swatman, 1997)
Some commonly used definitions of e-Business are presented by;
o Earl (2000) “e-Business is about re-engineering or redesigning business
processes to match customers’ expectations in the new economy”
o El Sawy (2001) “e-Business involves rethinking and redesigning business
processes at both the enterprise and supply chain level to take advantage of
Internet connectivity and new ways of creating value”
o Kalakota and Robinson (2001) “e-Business is the complex fusion of
business processes, enterprise applications, and organisational structure
necessary to create a high performance business model”
o Laudon and Traver (2008) “e-Business refers primarily to the digital
enablement of transactions and processes within a firm, involving only the
information systems under the control of the firm”
o Papazoglou and Ribbers (2006) “e-Business can be defined as the conduct of
automated business transactions by means of electronic communications
networks (e.g., via the Internet and/or possibly private networks) end-to-end”
o Schneider (2002) “business activities conducted using electronic data
transmission technologies such as those used in the Internet and the World
Wide Web”
o Turban et al. (2006) “e-Business refers to a broader definition of e-
commerce], not just the buying and selling of goods and services, but also
servicing customers, collaborating with business partners, and conducting
electronic transactions within an organization”
o Windrum and Berranger (2002) “E-business is the integration of the internet and
related ICTs into the business organization”
Page 10
According to (Melão, 2008) the clear commonalities among these definitions, include
the improvement of business processes and the use of ICT in intranets, extranets and
the Internet to conduct business. He defines e-Business as the use of ICT as an enabler
to (re)design, manage, execute, improve and control business processes both within and
between organizations. Thus, front- and back-office integration and multi-channel
integration become crucial in e-Business, which requires a challenging process
improvement approach to support the necessary organizational, technological and
social changes.
E-Business can describe companies operating in the ICT producing sectors as well as
new emerging sectors and industries such as in the area of digital content. However, at
a more fundamental level, the term e-Business also describes the application of
information and communication technologies to business processes in all sectors of the
economy to reduce costs, to improve customer value and to find new markets for
products and services (Department of Enterprise, Trade and Employment, 2004).
Electronic business methods enable companies to link their internal and external data
processing systems more efficiently and flexibly, to work more closely with suppliers
and partners, and to better satisfy the needs and expectations of their customers. E-
Business refers to more strategic focus with an emphasis on the functions that occur
using electronic capabilities. (Yen-Yi, 2006)
In this study we will, as previously stated, use e-business to describe all electronically
based exchanges of goods, services and information.
2.3. E‐BusinessAdoptionThe organizational adoption of an innovation has been defined as the adoption of an
internally generated or purchased device, system, policy, program, process, product, or
service that is new to the adopting organization (Daft, 1982)
E-business commonly involves integration of the internet and related ICTs into the
business organization and has two facets. One is the integration of the supply chain so
that production and delivery become a seamless process. The other is the creation of
new business models based on open systems of communication between customers,
Page 11
suppliers and partners. Where the integration of the supply chain provides increased
efficiency and significant cost advantages through waste minimization, the
development of new products and services are facilitated by new ways of conducting
business based on internet working between organizations and individuals. (Windrum,
and De Berranger, 2002
It is possible to trace a number of stages through which firms are passing as they
progress towards e-business. Each stage is associated with a higher degree of
internetworking and sophistication in communication modes, progression from
traditional commerce to e-commerce business models which require more radical
restructuring of the internal structures. (Windrum and De Berranger, 2002).
In order to acquire a holistic view of the electronic business adoption phenomenon the
academic and research community has focused its research attention on the analysis of
the electronic business adoption process. Within this framework, a great amount of
effort has been placed on the examination of the electronic business adoption process as
well as on the investigation of the significant factors that affect the specific process.
The results of the specific research attempts and developments have led to the
formulation of certain electronic business adoption models (European Commission,
2007).
The Stages theory has been widely used as a way of examining the adoption and
progression of various aspects of electronic business in organizations. The main
assumption of the Stages theory is that organizations progress towards electronic
business through a number of clearly defined and successive stages or phases. Each
adoption stage or phase is characterized by the existence of distinctive applications,
benefits and problems while it reflects a particular level of maturity in terms of the use
and management of Information Systems and Information Technologies (Taylor and
Murphy, 2004).
It is also assumed that the electronic business adoption process is linear, while the
outcomes and the developments of the progressive process are cumulative. (European
Commission, 2007).
Page 12
Within the Staged adoption models, early stages of electronic business adoption are
typically characterized by gaining access to the Internet followed by the use of
relatively simple applications, such as electronic mail (e-mail), in order to dispense and
gather information. Later, the business starts to publish a wider range of information in
order to market its products or services and perhaps provide after-sales support. The
deployment of electronic commerce practices comes next, allowing the users of the
corporate site to order and/or pay for goods and services. In the most mature stages, the
corporate website is fully integrated with the various back office systems such as
enterprise resource planning (ERP), customer relationship management (CRM), and
integrated supply chain management (SCM) applications (Mendo and Fitzgerald, 2005)
Electronic business can be approached in many different ways, depending on the
specific business process that might be carried out through the Internet. Thus, several
Internet usage profiles or approaches are possible. A company must determine which
profile or combination of profiles best suits its particular business context and strategy.
(Mendo and Fitzgerald, 2005)
2.4. BenefitsofE‐BusinessAdoptionAccording to Basu and Muylle (2007), companies can gain two fundamental types of
benefits from e-Business. These are generally described as:
Value Creation or Value Enhancement for one or more of a company’s stakeholder
groups; and Lower Cost of providing goods and services to the market place.
Examples under Value Creation include Improvement in internal and external
communication through effective e-marketing, Increment of sales through an e-
commerce website integrated with a back office systems and Improvement in supplier
relations and productivity through collaborative workspaces (Basu and Muylle, 2007).
And examples under Lower Cost are: reduction in communication and travel costs
using online meeting tools; shared workspaces and; benefit from license free open
source alternatives to proprietary software (http://www.nb2bc.co.uk/what_is_e-
Business).
Page 13
Businesses also see tremendous opportunities for cost saving, revenue generation,
increased market share, marketing and market access, and improving customer service
through direct links that facilitate speedy enquiry and feedback. Similarly, consumers
can inter alia, access the world market through the virtual economy on the Internet,
choose from a wider variety of products, and shop in the comfort of their homes.
Globalization and specifically liberalization of communication networks have all
facilitated this break-through that further presents a massive boost for international
trade. (Mark Bynoe, 2002)
Akoh (2001) answers the question why firms should go the e-Business way and
outlines the tremendous benefits derived by firms who have already integrated e-
Business in their business processes. According to him it is shown that the cost of a
full-service trading transaction is about $150. It will cost $69 doing the same using a
discount broker and $10 using an online broker! That’s about $140 saving on doing
business on the web.
Ako (2001) states that it will cost all parties (the bank, consumer, service provider, etc.)
$1.27 for a banking transaction (could be as little as making a cash withdrawal) at a
bank branch, $0.27 using an ATM machine and $0.01 banking using the Internet! And
in addition Ako iterates that doing business electronically does not only reduce cost but
tremendously affects the speed and efficiency of businesses.
Windrum and Berranger (2002) suggest that the commercial benefits of e-business lie
in five areas.
Firstly, firms are able to expand their geographical reach. Secondly, important cost
benefits lie in improved efficiency in procurement, production and logistics processes.
Thirdly, there is enormous scope for gaining through improved customer
communications and management. Fourthly, the Internet reduces barriers to entry for
new market entrants and provides an opportunity for small firms to reorient their supply
chain relationships to forge new strategic partnerships
Finally, e-business technology facilitates the development of new types of products and
new business models for generating revenues in different ways.
Page 14
2.5. BarrierstoE‐BusinessAdoptionAccording to Windrum and Berranger (2002 ) it is hypothesized that many of the
factors affecting the successful adoption of new technologies such as e-business are
generic in nature and that the successful adoption of internet technologies in part
depends on how these are used in conjunction with the other technologies and
management practices that form a ‘technology cluster .
However the most critical barrier can be ascribed to the very limited information and
communication infrastructure available in most countries in Africa (Ben Akoh 2001).
Reasons vary widely among sectors and countries and are most commonly related to
lack of applicability to the business, preferences for established business models,
(OECD, 2004)
. Common barriers include: unsuitability for the type of business; enabling factors
(availability of ICT skills, qualified personnel, network infrastructure); cost factors
(ICT equipment and networks, software and re-organisation); security and trust factors
(security and reliability of e-commerce systems, uncertainty of payment methods, legal
frameworks and Intellectual Property Right); and challenges in areas of management
skills, technological capabilities, productivity and competitiveness (OECD, 2004).
Lack of reliable trust and redress systems and cross-country legal and regulatory
differences also impede e-business adoption (OECD, 2004).
It is however important to note that barriers to e-Business adoption work differently
according to organizational type and culture. Areas of training and people development
need to be addressed. (Aranda-Mena and Stewart, 2005).
2.6. ChallengesRelatedtotheAdoptionofE‐BusinessMany writers of e-Business and e-commerce extol the enormous potential and
opportunities provided for consumers and businesses globally. However there are some
drawbacks and the benefits to be derived tend to be overstated. (Mark Bynoe, 2002)
Page 15
While many commentators hold the view that e-commerce has many advantages for
developing countries, the African continent has a number of major challenges to
overcome before it can more fully exploit the benefits of e-commerce. A number of
constraints, specific to doing e-Business in Africa, are apparent (Akoh, 2001). These
include but not limited to the following: Low level of economic development and small
per-capita incomes; limited skills base with which to build e-commerce services; the
number of Internet users needed to build a critical mass of online consumers and; lack
of familiarity with even traditional forms of electronic commerce such as telephone
sales and credit card use (ibid).
Perhaps one of the greatest constraints to the adoption of e-Business as a means to
generate efficiencies is a cultural reluctance to interface with buyers and suppliers
electronically. Such challenges remain major obstacles, limiting the potential benefits
of e-Business (Akoh, 2001). Other challenges are the cost of implementation, security
concerns, perceived customer readiness, lack of knowledge of IT and e-Business, the
relatively high costs associated with investments in ICTs, the lack of technical and
managerial skills and reluctance on the part of companies to network with other
enterprises and lack of executive support and concerns regarding the reliability of
technology (Department of Enterprise, Trade and Employment, 2004).
Page 16
Chapter3: ConceptualFramework
3.1. IntroductionThe previous chapter provided a review of literature relevant to our research questions.
This chapter will provide the conceptualization, which constitutes the frame of
reference for this study. The main aim of this chapter is to select relevant theories and
concepts that will be used in this study. The frame of reference provides guidance in the
collection of data and also helps to fulfill the purpose of describing the adoption of e-
business in banks in Ghana
3.1.1. BenefitsofE‐Business
Benefits expected to be gained from e-Business as an option is a big deciding factor for
a firm’s decision to go the e-Business way. Some of these benefits include value
creation and value enhancement, improvement in internal and external communication
(Basu and Muylle, 2007), cost saving, increased market share, speed and efficiency of
doing business and improvement in customer service (Akoh, 2001). These elements of
benefits are the expected answers to our first research question, “What are the benefits
that may be derived by adopting e-business?”
3.1.2. BarrierstoE‐BusinessAdoption
Windrum and De Berranger (2002) states that factors affecting the successful adoption
of new technologies such as e-business are generic in nature. However reasons vary
widely among sectors and countries. Common barriers include security and trust
factors, unsuitability for the type of business, enabling environment and cost factors.
Other barriers (OECD, 2004) have already been discussed in chapter two. From the
literature cited it is abundantly clear that there are certain issues or factors that
constitute barriers to the smooth adoption of e-business.
Page 17
This addresses our second research question “What are the barriers to the adoption of e-
business in banks in Ghana”
3.1.3. ChallengesofE‐Businessadoption
Though the expected benefits in the adoption of e-business are enormous, firms
adopting this new way of doing business can also expect some challenges as well.
According to (Akoh, 2001) some of these challenges are specific to doing business in
Africa. They include low level of economic development, limited information and
technological infrastructure, culture and high cost of investment. This reference is
formulated in view of our third research question, What challenges do banks face in
adopting e-business ?
3.2. Summarizationoftheories,conceptsandframeofreferenceinlinewithresearchquestions.
3.2.1. ResearchQuestionOne:Whatarethebenefitsthatmaybederivedbyadoptinge‐business
To be able to describe the benefits to the adoption of e-business, the following theory
has been utilised.
o Value creation or value enhancement. (Basu and Muylle, 2007)
o lower cost. (Ben Akoh ( 2001); Windrum &, De Berranger, (2002); Basu and
Muylle (2007), )
o Improvement in internal and external communication. (Windrum & De
Berranger (2002) ; Basu and Muylle (2007) )
o Increment of sales. (Basu and Muylle, 2007)
o Integrated with a back office systems. (Basu and Muylle, 2007)
o Improvement in supplier relations. (Basu and Muylle, 2007)
Page 18
o Improvement in Productivity (Basu and Muylle, 2007)
o Cost saving. (Ben Akoh, 2001), Mark Bynoe, 2002, )
o Revenue generation. (Mark Bynoe, 2002), (Windrum, P. &, De Berranger, P.,
2002 )
o Increased market share. (Mark Bynoe, 2002)
o Marketing and market access. (Mark Bynoe, 2002)
o Improving customer service. (Mark Bynoe, 2002)
o Speed and efficiency. (Ben Akoh ( 2001); Windrum. &, De Berranger ( 2002 )
o Expand geographical reach. (Windrum & De Berranger, 2002 )
o Reduces barriers to entry for new market. (Windrum, P. &, De Berranger, P.
2002 )
o Facilitates development of new products and new business models. (Windrum,
P. &, De Berranger, P. 2002 )
3.2.2. ResearchQuestionTwo:Whatarethebarrierstotheadoptionofe‐businessinbanksinGhana
To be able to describe the barriers to the adoption of e-business, the following theory
has been utilised.
o Lack of applicability to the business. (Windrum and De Berranger,. 2002)
o Preferences for established business models. (Windrum and De Berranger.
2002)
o Unsuitability for the type of business. (OECD,2004)
o Enabling factors. (OECD,2004)
o Cost factors. (OECD,2004)
Page 19
o Security and trust factors (OECD,2004)
o ICT competencies within the firm. (OECD,2004)
o Availability and cost of appropriate interoperable systems. (OECD,2004)
o Network infrastructure and Internet-related support services.. (OECD,2004)
o Cross-country legal and regulatory differences. (OECD,2004)
3.2.3. ResearchQuestionThree:Whatchallengesdobanksfaceinadoptinge‐business
To be able to describe the benefits to the adoption of e-business, the following theory
has been utilised.
o Low level of economic development. (Akoh, 2001)
o small per-capita incomes (Akoh, 2001)
o Limited skills base. (Akoh, 2001)
o Lack of familiarity (Akoh, 2001)
o Cultural reluctance. (Akoh, 2001)
o Availability of information and communication infrastructure (Akoh, 2001)
o Cost of implementation. (DETE, 2004)
o Security concerns. (DETE, 2004)
o Perceived customer readiness. (DETE, 2004)
o Knowledge of IT and e-Business. (Department of Enterprise, Trade and
Employment, 2004)
o High costs associated with investments in ICTs. (Department of Enterprise,
Trade and Employment, 2004)
Page 20
o Lack of technical and managerial skills. (Department of Enterprise, Trade and
Employment, 2004)
o Reluctance on the part of companies to network with other enterprise.
(Department of Enterprise, Trade and Employment, 2004)
o lack of executive support (Department of Enterprise, Trade and Employment,
2004)
o Organizational type and culture. (Aranda-Mena and Stewart, 2005)
The table below summarizes our research questions and theories used to answer them.
Table 3-1: A table showing research questions and theories used to answer.
Research question Theories used to answer
Content
What are the benefits that may be derived by adopting e-business
Basu and Muylle (2007)
Ben Akoh ( 2001)
Windrum &De Berranger (2002)
Mark Bynoe (2002)
Value creation or value enhancement, lower cost, Improvement in internal and external, communication, Increment of sales, Integrated with a back office systems, Improvement in supplier relations, Improvement in Productivity, revenue generation, Increased market share, marketing and market access, improving customer service, speed and efficiency, expand geographical reach, reduces barriers to entry for new market, facilitates development of new products and new business models
What are the barriers to the adoption of e-business in banks in Ghana
Windrum De Berranger (2002)
OECD,(2004)
Lack of applicability to the business, Preferences for established business models, Unsuitability for the type of business, Enabling factors, Cost factors, Security and Trust factors, ICT competencies within the firm,
Availability and cost of appropriate interoperable systems, Network infrastructure and internet-related support services,
Cross-country legal and regulatory differences.
What challenges do banks face in adopting e-business
Akoh, (2001) DETE (2004) Low level of economic development, small per-
capita incomes, Limited skills base, Lack of familiarity, Cultural reluctance, availability of information and communication infrastructure,
Cost of implementation, security concerns, Perceived customer readiness
Page 21
In this study the benefits of e-business are conceptualized as issues or factors perceived
by respondents as beneficial for e-business adoption. Similarly, barriers are those
factors perceived to be impediments to the adoption of e-business. Finally challenges
are conceptualized to be the perceived factors that make it difficult to adopt e-business.
Figure 3-1: Emerged frame of reference
Page 22
Chapter4: Methodology
The previous chapter which represents our conceptual framework provided the
theoretical bases for the planning and implementation of our research. In this chapter
we present the detail methodology showing the logical framework that discusses the
research purpose, research approach, data collection and data analysis
4.1. IntroductionMany writers have written extensively on research methodology. The underlying factor
in most studies on research methodology is that the selection of methodology is based
on the research problem and stated research questions. Methodologies cannot be true
or false, only more or less useful (Silverman, 2003). Nachamias et al (1996) for
instance states that methodologies are considered to be systems of explicit rules and
produced, upon which research is based, and against which claims for knowledge are
evaluated. Conducting any type of research should be governed by a well-defined
research methodology based on scientific principles. Eldabi and others (2002) have
suggested a series of steps as a research paradigm to be followed in a methodology in a
research. However, certain quality criteria such as reliability and validity should be
used as demonstrated in Figure 4.1 (CF, Foster, 1998).
Figure 4-1: Research Paradigm presentation for methodology. Source: Foster (1998)
Page 23
For the purpose of this research the schematic approach shown in Figure 4.1 will be
adopted.
4.2. ResearchPurposeThe purpose of this thesis is to conduct an exploratory and descriptive research in order
to gather as much information as possible concerning the adoption of e-Business as an
option in a competitive business environment in Ghana. Specifically this will be in
respect of the banking business. According to Yin (1994) exploratory research is
designed to allow a researcher to just look around with respect to some phenomenon,
with the aim to develop suggestive ideas. Exploratory research is often used when a
problem is not well known, or the available knowledge is not absolute. The technique
that is best suited for information gathering when performing an exploratory research is
interview (Yin, 1994). We are employing exploratory study because it gives valuable
insight of the problem and result drawn from this study will be in firm grasp of
essential characters. It has also been demonstrated that exploratory research provides
suggestive ideas through reviewing information from problem area. (Chisnall, 1997)
4.3. ResearchApproachThe research approach in this study is chosen based on the purpose and the research
questions set out to be addressed. In an exploratory research such as this a qualitative
approach will be adopted.
Qualitative data are characterized by the richness and fullness based on the opportunity
to explore a subject. The nature of qualitative study is primarily to understand, not to
explain. Qualitative research implies an emphasis on processes and meanings that are
not measured in terms of quantity amount, intensity or frequency.
The main features of quantitative research approaches have been described by Miles
and Huberman (1994) as shown below.
o The aim of qualitative analysis is a complete, detailed description
o Recommended during earlier phases of research projects
Page 24
o Researcher may only know roughly in advance what he/ she is looking for
o The design emerges as the study unfolds
o Researcher is the data gathering instrument
o Data is in the form of words, pictures or objects.
o Qualitative data is more “rich”, time consuming, and less able to be
generalized
o Researcher tends to become subjectively immersed in the subject matter
We are using the qualitative approach for our study because we want to have a deeper
understanding of e-Business adoption and its ability to give competitive edge. By
using the qualitative approach we will get the opportunity to explore our subject matter.
We are seeking to understand more about e-Business adoption and its competitive
nature and not to explain it.
4.3.1. StrategiesforResearch
Yin (2003) has described five primary strategies for research in social sciences to
collect empirical data. According to him, depending on the character of the research
questions, to which extent the researcher has control over behavioral events and to what
degree the focus is on contemporary event, the research can choose from the following:
o Experiments;
o Survey;
o Analysis of archival records;
o History;
o Case Study.
In our study we have used a case study approach since our research deals with “how”
barriers, benefits and challenges related to e-business adoption in Ghanaian banks can
be described.”. This is because the form of our research question is “how” e-Business
Page 25
adoption has or can help firms to stay ahead of competition in their respective
environments. In this thesis we are using the four banks in Ghana as a case study.
4.3.2. StudyArea
This section describes the banking environment in Ghana with respect to the policy and
legal framework under which the banking industry in Ghana operates.
The banking industry in Ghana is controlled by the Bank of Ghana acting as the central
bank. The total number of registered commercial banks under the bank of Ghana
numbers up to 23 as at January 2008. These comprises 5 state owned banks and 18
other private or multinational banks. In addition to the 23 banks, the sector also
comprises a range of non-bank financial institutions, including several community
banks established to mobilize rural savings.
The past few years have seen a phenomenal growth in the Ghanaian banking sector.
Ghana’s financial sector according to the Bank of Ghana is well-capitalized, very
liquid, profitable and recording strong asset growth. The banking sector has seen major
capital injection partly because of the political stability, attainment of micro and macro-
economic stability and the government’s desire to make Ghana the “financial hub” of
the Sub-region. For instance net interest income for the industry increased by 19% from
¢2.7tn in 2004 to ¢3.2tn in 2005 (George M and Bob-Milliar, 2007). Over the five-year
review period, net profit had increased by about 56%. Industry net profit after tax
margin dipped from 29.64% (2001) to 23.99% (2005). Industry return on equity (ROE)
has decreased steadily from a high of 43.9% in 2001 to 26.9% in 2005, while return on
assets dropped from 5.7% to 3.5 percent giving an indication of the increasing
competitive nature of the banking industry (Pricewater House Coopers, 2006).
The Ghanaian banking sector is now very vibrant and modern. According to
Dr.Mahamadu Bawumia, (the second Deputy Governor of BoG), bank branches in
Ghana increased by 11.3 per cent from 309 to 344 between 2002 and 2004 with 81 new
branches springing up from 2004 and 2006 indicating an increase of 23.5 per cent.
Most banks now employ cutting edge technologies to roll out their products to their
Ghanaian customers. Banking halls are housed in ultra modern buildings, staffed with
well trained ladies and gentlemen. Ghanaians living in the big commercial towns are
Page 26
now spoilt for choice. Twenty three banks are chasing the about 10 per cent of the
bankable segment of the population. Nigerian banks have added to the competition and
are well represented in the new banking sector in Ghana. (George M and Bob-Milliar,
2007).
Because of the very fierce but healthy competition in the banking sector, daily
newspapers are adorned with catchy adverts of re-branded or new products all in an
attempt to lure new customers to their products and services. Many banks in the
commercial centers now work half day on Saturdays, thus making it possible for busy
workers to access banking services at the weekend. (Price-water House Coopers, 2006).
Recent and emerging developments suggest that cost competitiveness, customer
sophistication, technology and regulatory changes will be the main drivers of change in
the industry and the banks that are able to position themselves to embrace these
challenges will emerge winners. (ibid)
The banking sector in Ghana has remained one of the sectors with the brightest
opportunities despite increasing competition (Price-water House Coopers, 2006).
4.4. TypeofDataandDataCollection
4.4.1. Typeofdata
Both primary and secondary data will be used in our study. Primary data that will
provide empirical data will be collected through, interviews, and administration of
structured questionnaires. These will give specific responses to our research questions.
Primary data is recognized as data that is gathered for a specific research in response to
a particular problem through interviews, questionnaires or observations. Secondary
data information is that obtained through various kinds of documents, e.g. Research
reports, annual reports, books and articles.
Most researchers agree that qualitative research should try to use as many different
sources as possible. This is on the general observation that no single source has
complete advantage of all other sources (Yin, 1994; Denscombe, 1998). For instance
according to Denscombe (2000) interviews are suitable when there is the need to gather
Page 27
detailed data and information from very few respondents, but the researcher would
have to decide whether or not the study needs the type of information and if it will be
possible to rely on the information these few respondents would provide the researcher
with.
4.5. Datacollection
4.5.1. SampleSelection
The population of banks sampled from Banks in Kumasi and Accra were categorized
into two main blocks i) two State-owned banks, and ii) Private-owned banks From each
category the sample units will be the managers responsible for e-buisness. A manager
from each bank will be selected from each category.
We have to take a sample because it is often impossible or too much expensive to
collect data from all the potential units. Hence samples are chosen to represent the
relevant attributes of the whole population. In this respect we note the caution by
Graziano and Raulin (1997) that because the samples are not perfectly representative of
the population from which they are drawn, we are unlikely to be able to generalize our
conclusions to the entire population.
4.5.2. EmpiricalData
The empirical data was mainly qualitative description given by the managers of the
sampled banks. This is important to be able to evaluate and describe the adoption of e-
Business application on the target banks. This data will be collected mainly through
the administration of structured questionnaires (see Appendix 1).
4.5.3. Secondarydata
This data was required to describe the environment in which the selected industry
operates. The data was obtained mainly from records and reports of the industry, from
the website, books articles and journals.
Page 28
4.5.4. ResearchProtocolsandCasestudydatabase
In the research protocol, the objectives of the study were restated in question forms to
emphasize the importance of all the components of the research and how the outputs
are expected to contribute to improving knowledge on e-Business adoption in Ghana.
In this respect the research protocol will be done with the following issues in mind
o barriers to the adoption of e-business in banks in Ghana,
o benefits of e-business, and
o challenges encountered in the adoption of e-business
4.6. DataAnalysisData Analysis generally consists of examining, categorizing, tabulation or otherwise
recombining the evidence to address the initial proposition of a study. According to
Yin (1994), the ultimate goal of analyzing data is to treat the evidence fairly, to produce
compelling analytical conclusions and to rule out alternative interpretations. In another
sense data analysis is seen to consist of three concurrent flows of activities (Miles and
Huberman, 1994). These three are data reduction, data display, and conclusion drawing
and verification.
Data reduction as an integral part of data analysis will be carried out to sharpen, sort,
focus, discard, and organized the data in a way that allows for final conclusions to be
drawn and verified. In this sense data reduction refers to the process of selecting,
focusing, simplifying, abstracting, and transforming the raw data (Miles & Huberman,
1994).
Data display refers to an organized assembly of information that permits conclusions,
drawing and action taking. Deductions and conclusion will be drawn from the data to
decide what things mean from the beginning of data collection. We do this by noting
regularities, patterns, explanations, possible configurations, causal flows, and
propositions. However, we hold such conclusions lightly, while maintaining both
openness and degree of skepticism. This is important because according to Chisnall
(1997) the stability and consistency of results derived from research is contingent on
Page 29
the probability that the same results could be obtained if the measures used in the
research were replicated. Essentially, reliability is connected with consistency, accuracy
and predictability of specific research findings. In addition, the role of reliability is to
minimize the errors and biases in this study. Two things that were adopted to increase
reliability in this study are the use of case study protocol and the development of a case
study database.
4.6.1. MethodofAnalysis
In this study the findings have been presented in narrative descriptions and where
possible, tables, charts and figures are also used to indicate trends and pattern that
facilitate discussions
Alvesson and Sköldbery (1994), state the three ways for drawing conclusions. These
are Inductive, Deductive, and Adductive
Inductive method is used to draw conclusions based on empirical findings. This
method is normally used when established theories in the field of study are limited and
the purpose is to form a new theory.
Deductive method is used when drawing conclusion perceived as valid when it is
logically connected. Usually in deductive studies, theories and literature that have been
established already is used as foundation for the new research.
Adductive method is similar to Inductive method. Here the researcher starts with the
empirical facts, just as in the inductive method. However, theoretical pre-conceptions
are not rejected. In adductive method a separate case is interpreted according to the
theoretical pattern as if it was true, would explain the case. The result is then confirmed
based on the new observations. The new observation from the study is then compared
with the theoretical frame of reference.
Based on the explanations above, our method of analysis is based on the deductive
Method. Our research is based on existing literature on e-business.
Page 30
This is in order because it presented to us a foundation upon which to build on by
presenting a guide for our questionnaire that will enable us to collect our data upon
which conclusions could be drawn based on the empirical findings.
4.7. QualityData
4.7.1. ValidityandReliability
Research quality is generally described by the validity and reliability of the research
methodology and data. In this thesis where the research is more of a qualitative
assessment we apply the quality criteria for the purpose of “generating understanding”
of the research issues identified in relation to e-business adoption in Ghanaian banks.
Patton (2001) states that the validity and reliability are two factors that any qualitative
researcher should be concerned about while designing a study, analyzing results and
judging the quality of the study
4.7.1.1. Validity
Validity refers to the extent to which a measure reflects the concept it intends to
measure. If the measures used actually measure what they claim to, and if there are no
logical errors when drawing conclusions from the data, the study is said to be valid
(Trochim, 2005,)
Generally the quality of empirical research can be assessed through four specific tests
described by Yin (1994) and as presented below.
Table 4-1: A table describing quality of research. Tests Description Reliability Demonstrating that the operations of a study can be repeated with the same results
Construct Validity Establishing correct operational measures for the concepts being studied
Internal Validity Establishing casual relationships whereby certain conditions are shown to lead to other conditions, as distinguished from spurious relationships.
External Validity Establishing the domain to which a study’s findings can be generalized.
Page 31
4.7.2. Reliability
Reliability means dependability or consistency (Neumann, 2006: 196). It indicates the
likelihood that a given measurement technique will repeatedly yield the same
description of a given phenomenon. The role of reliability is to minimize the errors and
biases in a study. (Yin, 2003,)
To ensure reliability in this study we mapped out the detailed procedure for sample
selection, selection of research instruments (mainly questionnaire), designing the
questionnaire, and administration of questionnaire. To have a representative sample of
the banks we made an initial visit to their headquarters and obtained information on
their regional coverage and location of branches within the study area. Through
informal contacts we managed to sensitize the selected branches and gave some
indication of the issues that our study seeks to investigate. This helped to design
realistic interview questions. A draft questionnaire was administered to few banks to
test the relevance of the questions and revised before the final administration. To ensure
candid response each respondent was assured of the anonymity of his or her answers.
Similarly to have a better understanding of the issue being addressed the questionnaire
were distributed a couple of weeks before the interviews. Further explanations were
provided in the course of the interview.
However, despite these attempts of maintaining a high reliability in this study, personal
biases on the part of the respondents in answering the questions and on the part of the
researches in recording the answers cannot be ruled out. Hence we cannot be exact on
the influence of attitudes and vales on the respondents and ourselves in the study.
With respect to constructed validity of this study, we have used a combination of
consultations, phone interviews and questionnaire to collect data. The collected data
and recorded notes from the interviews have been captured on a computer in a specified
format.
Page 32
Chapter5: CaseStudyAnalysis
5.1. IntroductionThis chapter deals with the output of the analysis of the questionnaire. Here empirical
data collected on four Ghanaian banks are presented. The data was collected through
personal interview and via emails. Each case is examined individually and a cross case
analysis is also done. The outputs are presented in the form of tables and charts. The
outputs are presented to indicate the responses to the three main questions:
o What are the benefits that may be derived by adopting e-business?
o What are the barriers to the adoption of e-business in banks in Ghana?
o What challenges do banks face in adopting e-business?
Before addressing the research questions, some characteristics of the banks are
presented.
5.2. GeneralDescriptionofBankinginGhanaThe banking industry in Ghana is controlled by the Bank of Ghana acting as the central
bank. The total number of registered commercial banks under the bank of Ghana
numbers up to 23 as at January 2008. These comprises five state owned banks and 18
other private or multinational banks.
Over the past ten years, Ghana has been undergoing the process of financial sector
restructuring and transformation as an integral part of a comprehensive programme to
ensure that the country achieves emerging market status. The recent developments in
the country's banking environment with the liberalization of entry encouraged foreign
banks and investors, noticeably those from Nigeria to consider the country as a good
destination for their investment.
Page 33
Liberalizing entry and encouraging foreign banks and investors into the financial
services industry has increased competition in the banking industry as well as the
introduction of strong business practices, technology, products and risk management
systems. Many of the traditional local banks in Ghana responded to the competition
brought by the foreign banks by rethinking their strategy, and reshaping their focus and
direction in order to be attractive to customers. (Daily Graphic, 2008)
In this study, four banks have been chosen. Two traditional banks (Ghana Commercial
bank and Agricultural Development Bank) and two foreign banks (Ecobank Ghana Ltd
and Stanbic Bank Ghana)
The table below describes these four chosen banks.
Table 5-1: Description of the four selected Banks in Ghana
Ban
k
Typ
e
Age
Ado
pted
Rea
son
ebus
ines
s Pr
oduc
ts
Tar
get
Cus
tom
ers
Reg
iona
l C
over
age
Bra
nche
s
Ecobank Ghana Ltd
Private Owned
10 Yes Responds to new Market Trends
To gain competitive advantage
Internet Banking SMS Banking, E-statments, E- alerts, ATMs
Corporate, and Retail
60% 41
Stanbic Bank Ghana Ltd
Private Owned
9 Yes Business strategy
Responds to Customer Needs
Electronic Banking, Internet Banking,
Mobile Banking
Corporate, and Retail
20% 16
Agricultural Development Bank
State Owned
44 Yes Response to changing market trends
Internet Banking, Sms Banking, E-Statements , E-Alerts Atms, Online fee payment
Retail and Corporate
100% 50
Ghana Commercial Bank
State Owned
55 Yes To keep up with competition
To increase deposits
MasterCard Commernet (internet) banking) Ezwich
Small savings depositors, sme and corporate entities
100% 141
Page 34
5.3. IndividualCaseanalysisIn chapter 2, a comprehensive literature on benefits, barriers and challenges to the
adoption of e-business was presented. In chapter three, these theories are further
expounded and conceptualized. Our criteria for examining and describing the status of
e-business adoption in sampled banks are based on these theories.
5.3.1. CaseOne:EcobankGhanaLtd.
Ecobank Ghana Ltd (EBG), founded in 1989 is part of the leading independent regional
banking Group in West and Central Africa serving wholesale and retail businesses. It
has a network of banks covering 18 countries namely: Benin, Burkina Faso, Cameroon,
Cape Verde, Central Africa, Côte d’Ivoire, Ghana, Guinea, Guinea Bissau, Liberia,
Mali, Niger, Nigeria, Sao Tome, Senegal, Sierra Leone, Chad and Togo, with plans to
establish presence in East and Southern Africa.
The Group has a network of over 320 branches and offices established in the last
nineteen years. Ecobank Transnational Incorporated (ETI) the parent company of the
Ecobank Group plays a central role in the definition and implementation of common
policies and standards on the basis of a “one bank” concept across the group’s network.
Ecobank Ghana is supervised and regulated by the Banking Supervision Department of
the Bank of Ghana (BOG), which is the Central Bank of Ghana. EBG has over 25
branches and customer service points in Ghana and a head count of 268. Return On
Equity (ROE) has consistently been over 40 percent in the last five years and Return
On Assets (ROA) in the range of 4 percent.
Ecobank Ghana Limited, together with subsidiaries, provides merchant banking, retail
banking, and investment banking products and services to wholesale and retail
customers in Ghana. Its deposit products include current, savings, and deposit accounts.
The company’s loan portfolio comprises personal loans, car and motor loans, home
mortgage loans, and business loans. Ecobank Ghana also offers cards; letters of credits
and bills for collections; transfer and payments; foreign exchange; and western union
services. In addition, the company offers finance leasing, automated teller machine,
Internet banking, telephone banking, and Ecobank regional cards services. It serves
Page 35
individuals, small and medium enterprises. Major competitors include Barclays Bank,
Standard Chartered Bank and Stanbic Bank.3
5.3.1.1. E‐businessAdoptioninEcobankGhanaLtd.
Ecobank Ghana adopted e-business as a response to new market trends and as a
competitive strategy. Some of their E-business products include Internet Banking, SMS
Banking, E-statements, E-Alerts and ATMS. Ecobank Ghana agrees that turnover of
the bank has increased since the adoption of e-business even though no specific margin
was given to this question because of company policy.
5.3.1.2. Benefitsofe‐businessadoptioninEcobankGhana
Ecobank Ghana agrees that adopting e-business as a strategy is one of the important
steps the bank has taken in its development due to the tremendous benefits e-business
adoption provides. According to them their perceived benefits include convenience to
customers, speed and quality of service, reduction of queues in banking halls and
reduction in the total overhead cost such as reduction in employee recruitment and
reduction in space for clients and customers. These are factors that pushed their drive to
adopt e-business.
5.3.1.3. Barrierstotheadoptionofe‐businessinEcobankGhana.
To stay competitive and to respond to the new market trends, Ecobank Ghana adopted
e-business as one of its strategies. The bank acknowledges that there were indeed
certain barriers that they needed to overcome. These barriers they perceived include
ICT competencies within the firm and enabling factors such as availability of ICT
skills, qualified personnel and network infrastructure.
5.3.1.4. Challengesintheadoptionofe‐businessinEcobank.
Despite the benefits, Ecobank Ghana agreed there were challenges as they adopted e-
business. According to them, the greatest challenge they perceived is cost of
bandwidth, which is a great deterrent to their quest to adopt e-business.
3http://business.everythinghana.com/index.php?option=com_mtree&task=viewlink&link_id=20&Itemid=26
Page 36
5.3.2. CaseTwo:StanbicBankGhanaLimited(SBG)
Stanbic Bank Ghana Limited (SBG) is part of the Standard Bank Group, one of
Africa’s largest banking groups, with operations across the continent of Africa and
other parts of the world.
Stanbic Bank was incorporated in Ghana in 1999 to provide a comprehensive range of
banking services to both corporate and retail clients. SBG’s core competency is
“relationship banking”. Stanbic Bank currently offers the following services: Retail
Banking, Wholesale Banking, Investment Banking, Treasury Products and Trade
Finance.
Major competitors include Barclays Bank, Standard Chartered Bank and Ecobank
Ghana Ltd.4
5.3.2.1. E‐businessAdoptioninStandbicBankGhana(SBG)
Stanbic Bank Ghana has adopted e-business over the past six years as purely a business
strategy and as a responds to customer needs. Some of the e-business products include
Electronic Banking (POS, ATMs Etc), Internet Banking, Mobile Banking, etc Stanbic
bank agreed that turnover of the bank has increased since the adoption of e-business
though no specific margin was indicated as a response to the question.
5.3.2.2. Benefitsofe‐businessadoptioninStanbicBankGhana
Stanbic bank Ghana agreed that adopting e-business has brought them benefits. Their
perceived benefits included speed and quality of service, simplification of working
process and accuracy of delivery of service.
According to them e-business enhanced their business processes that gave them a boost
in their customer acquisition and relationships.
5.3.2.3. Barrierstotheadoptionofe‐businessinStanbicBankGhana(SBG).
Stanbic Bank Ghana adopted e-business as purely a business strategy and a response to
customer needs. The bank acknowledged that they needed to overcome certain barriers 4 http://business.everythinghana.com/index.php?option=com_mtree&task=viewlink&link_id=64&Itemid=26
Page 37
as they adopted e-business. Apart from barriers as conceptualized in chapter three,
which the bank agreed and perceived as barriers, they did not come up with any new
perceived barriers as at the time of data collection.
5.3.2.4. Challengesintheadoptionofe‐businessinStanbicBankGhana(SBG).
Even though Stanbic bank Ghana agreed that there were some challenges during their
adoption of e-business, the bank did not identify any other perceived challenge apart
from what has been conceptualized as challenges in chapter three.
5.3.3. CaseThree:AgriculturalDevelopmentBank(ADB)
Agricultural Development Bank (ADB) was set up by an Act of Parliament in 1965 to
promote and modernize the agricultural sector through appropriate but profitable
financial inter-mediation. The Government of Ghana owns 51.83% shares while the
Bank of Ghana owns 48.17% shares.
The Bank accordingly supports improved technology adoption, marketing and
processing activities, equity participation in innovative ventures and activities, which
impact positively on the agricultural sector.
The bank does not limit its operations to the agricultural sector alone. However, it
allows for a balance in the distribution of its loanable funds between the agricultural
sector and the rest of the economy.
The bank provides small and large-scale agricultural and agro-industrial financing and
related export financing for agricultural products to promote agricultural development.
It also carries out commercial banking activities to spread the risks (commercial,
corporate, international banking and treasury management). The bank offers a range of
products and special financing schemes.
Agricultural Development Bank has about 50 branches around the country. ADB
operates one of the fastest funds transfers around the Globe. The bank is the sole agent
for Western Union Service and is linked by Satellite to the Bank.5
5 http://www.agricbank.com/AboutUs.aspx
Page 38
5.3.3.1. E‐businessAdoptioninAgriculturalDevelopmentBank
ADB adopted e-business in 1999 to respond to the changing marketing trends in the
Ghana banking industry. Their e-business products include, Internet Banking, SMS
Banking, E-statements, E-Alerts, ATMS and Online fee paying system (OFPS)
According to ADB with the introduction of e-business the bank’s turnover has
increased to about GH¢ 1,200,000.00 as at the time of data collection.
5.3.3.2. Benefitsofe‐businessadoptioninAgriculturalDevelopmentBankLtd
Since the introduction of e-business, ADB has had its tremendous benefits. According
to them, accuracy of delivery of service, increased growth in customer population and
increased staff confidence at work are some perceived benefits they have gained since
the adoption of e-business.
5.3.3.3. Barrierstotheadoptionofe‐businessinAgriculturalDevelopmentBankLtd
ADB agreed with perceived barriers as conceptualized in chapter three.
5.3.3.4. Challengesintheadoptionofe‐businessinAgriculturalDevelopmentBank(ADB)
ADB acknowledges that there have been quite a number of challenges despite the
benefits. Specific challenge they perceived is the advances in technology. According to
them due to the competitive nature of the industry the players attempt to out-do each
other by introducing cutting edge technologies for their products and services.
According to ADB, months after introducing a new service or product competitors try
to introduce the same service or product with higher technology.
5.3.4. CaseFour:GhanaCommercialBank
Ghana Commercial Bank Limited (GCB) is a Ghanaian-based bank founded in 1953
and is headquartered in Accra, Ghana as of July 2008; the Company had 141 branches
distributed throughout the country. The Company’s services include GCB XPRESS,
personal loans, GCB fast international money transfer, GCB MONEYGRAM, trade
services and automated teller machine (ATM) services.
Page 39
Ghana Commercial Bank Limited provides banking products and services for
individuals and corporate bodies in Ghana., The company’s corporate banking products
and services comprise current accounts, call deposit accounts, and cash management
services; short and medium term credit facilities in local and foreign currencies; fixed
deposits, treasury bills, negotiable certificate of deposits, and premium certificate of
deposits; money transmission services, including telegraphic transfer, cash collection,
and Internet banking; and international payments, foreign currency purchases, bills for
collection, letters of credit, foreign exchange accounts, guarantees, pre-export finance,
and post-shipment finance for importers and exporters. Ghana Commercial Bank also
offers business advisory, customer service and product development, relationship
management and market structuring, and business development services for small and
medium sized enterprises. 6
5.3.4.1. E‐businessAdoptioninGhanaCommercialBankLtd
Ghana Commercial Bank adopted e-business in 2006 firstly as a result of the fierce
competition in the Ghana banking industry and secondly to increase their deposit. Some
of the e-business products the bank has introduced include Master Card 2, CommerNet
(Internet) banking and e-zwich (An electronic payment system). GCB agreed that since
the introduction of e-business the bank has seen its turnover increase however, figures
were not available to confirm this.
5.3.4.2. Benefitsofe‐businessadoptioninGhanaCommercialBankLtd
Though e-business has been adopted for just about two years, GCB agrees that they
have had some benefits. According to them some perceived benefits to the bank
include enhanced Public image of the bank, positive change in customers and
confidence in customers’ accounts.
5.3.4.3. Barrierstotheadoptionofe‐businessinGhanaCommercialBankLtd
GCB acknowledged that it took them quite a while to adopt e-business due to the huge
barriers they perceived stood in their way. The bank agreed that their perceived
barriers are the same as what has been conceptualized in chapter three.
6http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=12506012
Page 40
5.3.4.4. Challengesintheadoptionofe‐businessinGhanaCommercialbankGhana
Ghana Commercial Bank agreed that they did encounter some challenges. Specifically
they identified the increased pace in technological advancement as a perceived
challenge to deal with.
5.4. CrossCaseAnalysisIn this section of the case study analysis, data collected from the four selected banks is
crossed analyzed. Cross case, analysis means analyzing data from the selected cases to
look out for similarities and differences in order to draw conclusions.
5.4.1. Crosscaseanalysis
The trends and status in e-business adoption among the sample banks is presented here
in terms of characteristics of the bank (ownership, years of existence, national coverage
and number of branches), reasons for adoption, e-products, target customers and
national coverage.
5.4.2. BankingBusinessCharacteristicsinGhana
The characteristics of respondent banks are described in terms of age of bank,
ownership and extent of national coverage and category of customers that the banks do
business with.
5.4.2.1. BankageandRegionalcoverage
The national coverage of the banks is based on the banks having at least one branch in
the ten regions in Ghana. As such although Ecobank Ghana (EBG) Ltd has 41
branches, just nine short of Agricultural Development Bank (ADB), it has 60%
coverage whiles ADB has 100%. This is because EBG has a presence in only six of the
ten regions in Ghana.
The sampled banks have been in operation in Ghana between 9 and 55 years. It is noted
that the oldest bank sampled is a state owned bank. This reveals that Ghana has a long
history of state owned banking. However, in recent years more private banks continue
to be established as is indicated by the youngest bank that is only 9 years old in Ghana.
Page 41
Out of the four banks sampled (Ownership type) only the state banks are operating
across the ten regions in Ghana as indicated by coverage of between 100% in both case
(Table 5-1 and Figure 2-1).
A premise for state-owned enterprises and banks in particular, is that political
objectives take primacy over the quest for growth and development. In this “political
view,” politicians use state-owned banks and other enterprises “to provide employment,
subsidies and other benefits. State-owned banks are particularly desirable as
instruments for the distribution of political largess because their lending activities can
influence all sectors of the economy and banks frequently operate large branch
networks spanning all or most regions of a country.
Traditionally the state-owned banks have provided services for government employees,
and state owned enterprises, putting it in the realms of retail and corporate banking.
ADB has traditionally targeted its services at the 60% of Ghanaians that are into
agriculture. Whiles GCB has banked mainly non-agriculture industries. Both banks
networks reflect the scope of their business.
With respect to the wholly private banks, their coverage is generally below 70% with
majority only present in few regional capitals as indicated in chart one. The private
banks have consistently started up in the city capitals targeting large and small
corporations. They deliver both retail and corporate banking services, but the corporate
services seems to be the determining factor for locating a branch in a region. For
instance, none of the private banks have a presence in the Central region of Ghana.
Although it is a populous region, it has very few and small industries that are not
attractive enough for the private banks. In such regions the state-owned banks would
have already secured the business of the industries located there.
Page 42
Figure 5-1: Ghana map inserted with the Regional distribution of banks and Numbers showing human population density per square kilometre
The three northern regions are sparsely populated and have little or no industries. Here
it is evident that only the state-owned banks have presence.
Page 43
5.4.2.2. Typeandlocationofcustomers
For the four banks sampled the private banks indicated that they are targeting mainly
the business entities. On the contrary, the state banks indicated that their major
customers are government organizations and private individuals. This pattern of
distribution of major customers is also likely to affect the level and success of e-
business application.
With reference to the location of customers, the private banks indicated that their
customers are heavily represented in the cities, while the state banks operated evenly in
the cities and urban settlements.
5.4.2.3. Reasonsforapplyinge‐business
The respondents gave several different reasons that they perceived to have influenced
the banks’ decision to adopt e-business strategies in their banking business. Two of the
responses given by the sampled banks (EBG and ADB) were as a result of changing
trends in the business environment while one ( SBG) indicated that it is a strategic
move, while two others (EBG and GCB) said it is to keep up with competition. The
likelihood of having a competitive edge when e-business is adopted was given by two
(state) banks (GCB and ADB).
5.4.2.4. E‐servicesandproducts
Six types of services were listed by at least one or more banks as shown in Table 2. The
banks described E-services as those business services that can be provided for a
business or consumer via internet or thorough electronic means.
5.4.3. CrossAnalysisofBenefitstotheadoptionofE‐business
As indicated from literature the adoption of e-business brings some benefits to
businesses. All the sampled banks indicated that they have gained some benefits since
the adoption of e-business. All of them indicated that their turnover has increased. They
have also expanded their geographical reach and increased their market share. E-
business has facilitated the development of new business models and has improved
their productivity.
Page 44
All of them have noticed improvement in customer service and external and internal
communications. They have also seen increment in sales and cost of doing business has
reduced.
The other benefits they have all gained include growth of customer population,
customer confidence in their account records and staff confidence at work improved.
Again, they indicated that e-business enabled them to simplify working process, reduce
queues in the banking halls and reduce total overhead cost such as acquiring more
space and recruiting more employees.
Empirical data from the four cases in our study mainly supports the factors identified as benefits of e-business adoption in the literature review (Table 5-2).
.
Table 5-2: Benefits of e-business adoption, derived from literature review
Benefits
EB
G
SBG
AD
B
GC
B
Value creation or value enhancement √ √ √ √
lower cost of doing business √ √ √ √
Improvement in internal and external communication √ √ √ √
Increment of sales √ √ √ √
integrated with a back office systems √ √ √ -
Improvement in supplier relations - √ √ -
Improvement in Productivity √ √ √ √
cost saving √ √ √ √
revenue generation - √ √ √
Increased market share √ √ √ √
marketing and market access √ √ - -
Improving customer service √ √ √ √
speed and efficiency √ √ √ √
Page 45
Benefits
EB
G
SBG
AD
B
GC
B
expand geographical reach √ √ √ √
reduces barriers to entry for new market - - - √
facilitates development of new products and new business models √ √ √ √
Besides the benefits identified in our review of the literature, the empirical data shows
evidence of an additional set of benefits of e-business adoption. These twelve additional
benefits in our study are presented in Table 5-3
Table 5-3: Benefits of e-business adoption, additional findings
5.4.4. CrossAnalysisofBarrierstotheadoptionofE‐business
As has been noted in the conceptual framework in chapter three, there are indeed
barriers to the adoption of e-business. The four sampled banks all indicated that
Any Other Benefits
EB
G
SGB
AD
B
GC
B
Convenience to customers √ - - -
Speed and quality of service √ √ - -
Reduction of queues in banking hall √ - - -
Reduction in total overhead cost such as reduction in employee recruitment and reduction in space for clients
√ - - -
Simplification of working process - √ - -
Accuracy of delivery of service - √ √ -
Increased growth in customer population - - √ -
Increased Staff confidence at work - - √ -
Effective and efficient banking procedures - - - -
Enhanced Public image - - - √
Positive change in customers - - - √
Confidence in their accounts - - - √
Page 46
Preference for established business models and Cost factors such as costs of ICT
equipment and networks, software and re-organization are perceived barriers they
encountered in their quest for e-business adoption. However, contrary to literature,
none of the sampled banks agreed that Security and trust factors are a perceived barrier.
Again only two of the banks (EBG and ADB) agreed that enabling factors such as
availability of ICT skills, qualified personnel and network infrastructure are perceived
barriers. Further, SBG and GCB agreed that availability and cost of appropriate
interoperable systems are perceived barriers as suggested by literature. Moreover, only
ADB and EBG agreed that Lack of applicability to the business and ICT competencies
within the firm were perceived barriers respectively.
Out of ten factors identified as barriers to e-business adoption in our literature review,
nine were supported by empirical data from the four cases (Table 5-4).
Table 5-4: Barriers to e-business adoption, derived from literature review
Barriers Responses
EB
G
SBG
AD
B
GC
B
Lack of applicability to the business - - √ -
Preference for established business models √ √ √ √
Unsuitability for the type of business - - √ -
Enabling factors (i.e. availability of ICT skills, qualified personnel, network infrastructure √ - √ -
Cost factors (i.e. costs of ICT equipment and networks, software and re-organization) √ √ √ √
Security and trust factors - - - -
ICT competencies within the firm √ - -
Availability and cost of appropriate interoperable systems - √ - √
Network infrastructure and Internet-related support services √ - √ -
Cross-country legal and regulatory differences √ √ - -
Any other barriers - - - -
Page 47
5.5. CrossanalysisofperceivedChallengesintheadoptionofe‐business.
The banks agreed with literature as indicated in their responses that despite the benefits
of adopting e-business, there are several challenges that are likely to retard the rate of
adoption. Fifteen main issues were listed as major challenges (Table 5.5). For instance
all the sampled banks indicated that Low level of economic development, Limited
skills base and Organizational type and culture are all perceived challenges they
encountered when adopting e-business. However, contrary to literature none of the
banks agreed that Lack of executive support was a challenge.
Again only EBG and ADB agreed that Reluctance on the part of companies to network
with other enterprise and Lack of technical and managerial skills are challenges
respectively. Also, customer readiness was thought to be a perceived challenge as three
of the banks namely EBG, ADB and GCB agreed with literature as conceptualized in
chapter three. Two banks (SBG and GCB), (EBG and GCB) and (ADB and GCB)
agreed that Small per-capita incomes, Cultural reluctance and Availability of
information and communication infrastructure were challenges respectively. Only one
bank EBG and ADB agreed that Reluctance on the part of companies to network with
other enterprise and Lack of technical and managerial skills.
In addition to what we had perceived as challenges in the chapter on conceptualization,
the sampled banks brought out other challenges they have encountered. These include
Cost of Bandwidth, Advances in technology and Increased pace in technological
advancement.
Tables 5-5 and 5-6 show empirical data from our four cases with respect to challenges
of e-business adoption
Page 48
Table 5-5: Challenges of e-business adoption, derived from literature review
Challenges
EB
G
SBG
AD
B
GC
B
Low level of economic development √ √ √ √
Small per-capita incomes - √ - √
Limited skills base √ √ √ √
Lack of familiarity √ - - √
Cultural reluctance. √ - - √
Availability of information and communication infrastructure - - √ √
Security concerns - √ √ √
Perceived customer readiness √ - √ √
Knowledge of IT and e-Business √ - - √
High costs associated with investments in ICTs √ - - √
Lack of technical and managerial skills - - √ -
Reluctance on the part of companies to network with other enterprise
√ - - -
Lack of executive support - - - -
Organizational type and culture √ √ √ √
Cost of implementation - √ - √
Table 5-6: Challenges of e-business adoption AdditionalFindings
Any other challenge
EB
G
SGB
AD
B
GC
B
Cost of Bandwidth √ - - -
Advances in technology - - √ -
Increased pace in technological advancement - - - √
Page 49
Chapter6: ConclusionsandRecommendations
In this chapter, we draw conclusions from the study and make recommendations for
future research, as well as recommend on how e-business may be integrated into
Ghanaian banking activities to ensure business growth.
6.1. Benefitsthatmaybederivedbyadoptinge‐business
It is obvious from the study that the benefits of e-business are well known to the banks
and represent a formidable force to drive the adoption by many banks in Ghana. The
general recognition of the positive impact of e-business on: reduction of cost of doing
business; volume of sales of products and services; speed and accuracy of service
delivery; market share, improved productivity and customer service and; expansion of
geographical reach, appear very attractive to the banks.
In view of the enumerated benefits, responding banks have come to accept e-business
as a novelty that has a very great potential of improving their public image
This is because processes that need staff to handle have been electronically simplified
and put online for clients to access. Though this study did not involve talking to clients,
it became clear that banks perceived the adoption of e-business to produce positive
change in clients’ attitude as well as their own staff. This conclusion is on the
observations that clients became more confident in their accounts statements and
appreciative of the reduced time in transacting business; while staff exhibited
noticeable changes in their confidence at work.
The benefits of e-business are experienced whether or not the bank is state or private.
Page 50
6.2. Barrierstotheadoptionofe‐businessinbanksinGhanaFrom our study, the prominent perceived barrier to the adoption of e-business by the
respondents was their preference for established business models and cost factors. The
banks in the industry take little risk and favour business models that have been the
hallmark of the industry for decades. The emergence of foreign banks into the industry
whose established business models are centered around e-business have caused some
banks to explore the opportunities in the new models. However, these banks are still
conservative and would always prefer established models where the alternative exists.
In a country where most hardware, software and qualified personnel are still imported
to implement and support solutions such as e-business, the costs are high. Often the
setup and recurring cost of maintaining these systems are prohibitive. Banks that are
able to train and build competences in their own staff have lower cost of adopting e-
business than those that have to import the expertise.
6.3. Challengesthatbanksfaceinadoptinge‐businessThe challenges to e-business adoption by banks in Ghana may be described as
economic; technical and technological; ethical and institutional; and socio-cultural.
In the economic perspective, Ghana like other developing countries in Africa has a low
level of economic growth as depicted by the Low Gross Domestic Product (GDP).
This economic situation poses a challenge to the banks’ ability to price products and
services on the local market so as to be able to recover the full cost of investment and
possibly have a reasonable profit margin. Therefore, an accelerated growth of the
Ghanaian economy can be seen as a necessary ingredient to increased demand for e-
business products and services making it more attractive for banks to expand on their e-
businesses.
Associated with the ethics is the security clients’ data or record with the banks. The
level of security risk associated with an e-business product or service pose different
challenges to different banks. Improvements are required to ensure client confidence.
Technical and managerial skills available locally for e-business are also limited. This is
influencing the choice of technology. Consequently, it can become difficulty for banks
Page 51
to keep abreast with technological advancement as well as make improvement to meet
the changing global trends. This situation is likely to be more serious with banks that
appear to be averse to technological development. At institutional level the
administrative structure, the nature of its bureaucratic processes and operational ethics
make a significant difference in the banks outlook for adoption of e-business. This was
evident between the state and private banks as the private banks appeared more vibrant
in their quest for e-business adoption.
Technical equipments and other accessories supporting the e-systems are manufactured
to certain specification and standards that may not necessary function optimally under
the tropical Ghanaian environment. This presents a huge challenge in the absence of the
technical expertise and competence to select right combination of specifications. The
major concern here is that some applications that work well in developed countries
cannot work in Ghana because for example the bandwidth needed to support such
systems and application is simply unavailable and the cost woefully expensive.
Additionally the pace of technological advancement makes products and solutions
obsolete in a short time after its implementation before a new technology has to be
adopted. The associated cost of switching technologies in such events is contributing to
the varying degrees of e-business adoption among banks. Unfortunately, the internal
economy is still not so strong to provide quick returns for regular investments in
technology and training. Again Ghana is still at the foundation stage of putting ICT
infrastructure (e.g., improving its telecommunication infrastructure) such that in the
near future, this would not be a perceived challenge anymore.
The banks have also taken notice of the significance of the Ghanaian socio-cultural
settings on the customer acceptance of new ways of doing business. In this respect, the
banks especially those operating in the urban and rural areas (where social and cultural
norms are stronger) are unlikely to move faster in the adoption of e-business strategies.
Page 52
Generally, the responses show that whereas knowledge of IT and E-business were
apparent in some situations there were limited skill base for e-business. This situation
is likely to affect the quality of service, which can then negatively impact on the
customers’ response to the service and eventually influence customer behavior to e-
business.
6.4. Summary
In the previous chapter, it was indicated that all the four banks have adopted e-business
though their reasons were not the same. The results of the responses show that the
banks are more or less doing their normal business via the net.
It can be deduced that all the banks are in some manner responding to changing trends
in how business is conducted. If a business wants to be effective, efficient and stay
competitive , the business cannot help but to adopt technology to enhance business
processes and one of such technology is e-business.
The four banks all have varied reasons for adopting e-business and this stems from their
peculiar corporate persona. At the time of the interview we learnt that Agricultural
Development Bank was at the verge of being sold by the government to increase its
productivity. The staff was desperate to keep the status-quo or own it. Management
sought strategies to improve productivity and efficiency. E-business was readily
accepted as a strategy to make the bank abreast with the new market trend.
Ecobank Ghana Ltd from its inception in Ghana has tried to keep up with new market
trends and gain a competitive advantage in the industry, adopting e-business was a
natural choice.
Stanbic Bank Ghana Ltd the youngest of the banks, its parent company Standard Bank,
South Africa has already adopted e-business as part of their business strategy so easier
to go that way too.
Page 53
Ghana Commercial Bank, the largest bank in the country with 141 branches and
increasing profitability adopted e-business to keep up with competition and increase
their market share.
The analysis of the responses to the questionnaire have shown that Ghanaian banks are
competing strongly for customers and to this end most banks believe that to have a
competitive edge they need to improve on the way they do business and one sure
approach is the adoption of e-business strategies. However, the levels of integration
achieved by the banks have been influenced significantly by the customers’ locations.
There is higher integration in banks located in the cities and dealing mainly with
business entities or government organizations than those located in the urban areas.
This situation is driven by the fact that Internet facilities are more accessible to the
banks and customers in the cities than customers in the urban areas. This situation also
reaffirms the banks concern for technology as the most important challenge to the
effective adoption of e-service in the banking industry in Ghana.
The various areas where the banks are preparing to use e-business approach includes
familiar and relatively mature electronically-based products in developing markets,
such as telephone banking, credit cards, ATMs, and direct deposit. It also includes
electronic bill payments and products mostly in the developing stage, including stored-
value cards (e.g., smart cards/smart money) and Internet-based stored value products.
In this study, it can be concluded that E-business in state banks in Ghana is in the early
stages of development and most banking is still done the conventional way. However,
there is an increasing growth of online banking in the private banks indicating a
promising future for online banking in Ghana.
This means that most of the banks have recognized the need to change their business
process to conform to changing business trends in order to keep up with competition.
6.5. Recommendations
This study was only an exploratory and descriptive one to have a general over view of
the status of e-business approach in the banking industry in Ghana. At the end of this
Page 54
study, we find the need to recommend for further studies that will address the
following:
o Market factors, obstacles, problems and issues affecting the growth of e-
business in Ghana.
o What are the trends and prospects for e-business in the urban and rural areas in
Ghana?
o What is the status of national policy and regulations on e-banking?
o Evaluate consumer dimensionality of e-services, and how they perceived the
current e-service quality and the influences on the consumer behaviour.
o Determinants of e-service quality, consumer satisfaction and behavioural
intentions to advice banks on their bid to improve their competitive advantage
through the adoption of e-business strategies.
Page 55
References
Abdolvand, N.and Kurnia, S (2005). “The EPC Technology Implications on Cross-
Docking,” San Diego International Systems Conference, 2005, USA.
Acquah, P.A (2006) “Evaluating the banking system in Ghana” Fifth Banking Awards
Ceremony, Accra, 6 May 2006.
Aguilar-Savén, R. (2004) “Business Process Modelling: A Review and Framework”,
Aissi, S., Malu, P. and Srinivasan, K. (2002) “E-Business Process Modeling – The
Next Big Step”, IEEE Computer, 35 (5), 55-62.
Akoh, B (June 2001) “E-Business in the developing world, Africa and Ethiopia:
Allen, E.andFjermestad, J. “E-Commerce Strategies: The Manufacturer Retailer
Consumer Relationship,”
Al-Mudimigh, A.S (2007). “E-Business Strategy in an Online Banking Services: A
Case Study Journal of Internet Banking and Commerce, April 2007, vol.
12, no.1 (http://www.arraydev.com/commerce/jibc/)
Amit Basu and Steve Muylle (2007) “How to Plan E-Business Initiatives in Established
Companies” MIT Sloan Management Review Fall 2007
Amor, Daniel (2000), The E-Business (R) evolution. Upper Saddle River, NJ: Prentice
Hall
Annan Kofi A.2001. (In Forward)E -Commerce and Development Report 2001,
UNCTAD Secretariat, United Nations Conference on Trade and
Development, United Nations, New York and Geneva
APJII – AsosiasiPenyelenggaraJasa Internet Indonesia, Statistik APJII, 2005.
Aranda-Mena, G and Stewart, P (2005) “Barriers to e-Business adoption in
construction international literature review”
Page 56
Bakos, Y. “The Emerging Role of Electronic Marketplaces on the Internet,”
Communications of the ACM, 41(8), August 1998, pp. 35-42.
Bakos, Y. and Brynjolfsson, E. “Aggregation and Disaggregation of Information
Goods: Implications for Bundling,
Barness, S.and Hunt, B. E-Commerce and V-Business, Butterworth Heinemann, 2001,
England.
Barua, A., Konana, P., Whinston, A. and Yin, F. (2004) “An Empirical Investigation of
Net- Enabled Business Value”, MIS Quarterly, 28 (4), 585-620.
Bawumia, M. (2007) “Banking in Ghana in the Last 50 Years-Challenges and
Prospects” January, 2007
Bennett, B., Cobbold, T. and Phillips, M. (2003) ICT use and firm performance in
Australia: evidence from firm interviews. Eight working paper of the Joint
Project on Use of Information and Communications Technologies,
Department of Industry, Tourism and Resources and the Productivity
Commission: 32
Betts, M. (2000) “It's Official: There really is a 'Digital Economy',” Computerworld,
June 2000.
Business and Enterprise Development, vol. 11, No. 3, pp. 280-289.
Caribbean Export Development Agency, 1999, E-commerce project Information paper,
CEDA, Barbados
Castle Asia. SMEs and E-Commerce, prepared for the Asia Foundation, 2002.
Champy, J. (2002) X-Engineering the Corporation: Reinventing your Business in the
Digital Age. Warner Books, New York.
Chattergee, D., Segars, A. and Watson, R. (2006) “Realizing the Promise of E-
Business: Developing and Leveraging Electronic Partnering Options”,
California Management Review, 48 (4), 60-83.
Page 57
Choi, Soon-Yong, Dale O. Stahl, & Andrew B. Whinston (1997), The Economics of
Electronic Commerce. Indianapolis, IN: Macmillan Technical Publishing.
Chowdhury, A. (2003) “Information Technology and Productivity Payoff in the
Banking Industry: Evidence from the Emerging Markets”, Journal of
International Development, (15:6), 2003
Chu, C. and Smithson, S. (2007) “E-Business and Organizational Change”, Information
Clark, Ted (1999), “Electronic Commerce in China,” in Sudweeks, Fay, & Celia T.
Rom (Eds.), Doing Business on the Internet: Opportunities on the Internet
(pp. 233-246). London: Springer.
Clegg, C., Chu, C., Smithson, S., Henney, A., Willis, D., Jagodzinski, P., Hopkins, B.,
Johanson, B., Fleck, S., Nickolls, J., Bennet, S., Land, F., Peltu, M. and
Petterson, M. (2005) “Sociotecnical Study of e-Business: Grappling with an
Octopus”, Journal of Electronic Commerce in Organizations, 3 (1), 53-71.
Coltman, T., Devinney, T. and Midgley, D. (2007) “E-Business Strategy and Firm
Coltman, T., Devinney, T., Latukefu, A. and Midgley, D. (2001) “E-Business:
Revolution, Evolution or Hype?” California Management Review, 44 (1),
57-86.
Company”, Harvard Business Review, 82 (4), 84-93.
Cooper, D. R. and Schindler, P. S. 2003: Business Research Methods 8th Ed. New
York: McGraw-Hill
Cousins, Jay and Stewart, Tony (2002) What is Business Process Design and Why
Should I Care? RivCom Ltd., September, 2002.
Cronin, Mary J. (2000), Unchained Value: The New Logic of Digital Business.
Boston, MA: Harvard Business Press.
Cross, F. k (2008) “E-Business Requires E-Process” Journal of Information
Technology, 22, 87-101.Partner Corporate Renaissance, Inc
Page 58
Da Costa, Eduardo, (2001) Global E-Business Strategies for Small Businesses, The
MIT Press, Cambridge, MA, USA, 2001.
da Costa, Eduardo, 2001. Global E-Business Strategies for Small Businesses, The MIT
Press, Cambridge, MA, USA p.129,
Da Costa, Eduardo, 2001. Global E-Commerce Strategies for Small Businesses, The
MIT Press, Cambridge, MA, USA p.129,
Daft, Richard L. 1982. “Bureaucratic Versus Nonbureaucratic Structure and the Process
of Innovation and Change.” In Research in the Sociology of Organizations,
V. (1). Ed. S.B. Bacharach. Greenwich, CT: JAI Press, 129-166
Daily Graphic. "Nigerian Banks Find Doing Business In Ghana Too Good To Resist."
Modern Ghana. June 19, 2008.
http://www.modernghana.com/newsp/170663/1/pageNum2/nigerian-banks-
find-doing-business-in-ghana-good-t.html (accessed Feburary 15, 2009).
Davenport, Thomas: "Process Innovation: Reengineering work through Information
Technology", Harvard Business School 1992.
David Simchi-Levi, S. David Wu and Z. Max Shen (Eds.) (2004) Handbook of
Quantitative Supply Chain Analysis: Modelling in the E-Business Era;
Kluwer Academic Publishers pp1-9
Davidow, W. and Malone, M. (1992) The Virtual Corporation: Structuring and
Revitalizing the Corporation for the 21st Century. HarperCollins, New
York.
Dedrick, J., Goodman, S. & Kraemer, K. “Little Engines that could: Computing in
Small Energetic Countries”, Association of Computing Machinery, (35),
1995, pp.21-26.
Deise, Martin V., Conrad Nowikow, Patrick King, & Amy Wright (2000), Executive’s
Guide to E-Business: From Tactics to Strategy. New York: John Wiley &
Sons.
Page 59
Denscombe, M 2000: The Research Guide for Small Scale- Social Research Projects.
Open University Press.Buckingham. Philadelphia.
Digital Information and Intellectual Property, Kennedy School of Government, Harvard
University, January
Dufour, A, (1999). Que Sais-je, quoted in International Trade Forum, 1/99, ITC,
Geneva.
Earl, M. (2000) “Evolving the E-Business”, Business Strategy Review, 11 (2), 33-38.
E-Business Guide, (2004): Getting Started: an Australian guide to doing business
online Australian government www.e-Businessguide.gov.auaccessed on
12/07/2008
Economist 1999. “Business and the Internet Survey.” June 26th.
Economist, 1999, The net imperative: Business and the Internet Survey, June 26th,
1999, The Economist, London
Ein-Door, Phillip, Seymour E.Goodman, & Peter Wolcott (2000), “From Via Maris to
Electronic Highway: The Internet in Canaan,“ Communications of the
ACM, 43(7), 19-23.
El Sawy, O. (2001) Redesigning Enterprise Processes for e-Business. McGraw-Hill,
Boston.
Eldabi T., Irani T., Paul, R.J. Love P.E. D 2000: Quantitative and qualitative Decision
Making Methods in Simulation Modelling. Management Decision, Vol 40
(1) P.64-73
Ethiopia in the Knowledge Age
Evans, P. and Wurster, T.S.(1999) “Getting Real About Virtual Commerce,” Harvard
Business Review, November- December 1999, pp. 84-94.
Page 60
Fingar, Peter, Harsha Kumar, &Tarun Sharma (2000), Enterprise E-Business: The
Software Breakthrough for Business-to-Business Commerce. Tampa, FL:
Meghan-Kiffer Press.
Forster, Tim. (1998) Industrial Marketing Communication: An Empirical Investigation
on the use of Marketing Communication Tools. Licentiate Thesis, Lulea
University of Technology, 1998
Frank, A Kenneth, Zhao, Yong and Borman, Kathryn (2004) Social Capital and
theDiffusion of innovations Within Organisations: The Case of Computer
Technology inSchools, in Sociology of Education. Albany: April. Vol 77,
issue 2 pp148-172
Fred Nickols 2000, Distance Consulting
Frempong,G (2007) “Trends in ICT Usage by Small and Medium Scale Enterprises in
Geoffrion, A. and Krishnan, R. (2003) “E-Business and Management Science: Mutual
Impacts (Part 1 of 2)”, Management Science, 49 (10), 1275-1286.
George M. & Gloria K.Bob-Milliar. (2007)Developments in the Ghanaian Banking
Sector.
Ghana” ATDF Journal Volume 4, Issue 1
Giaglis, G. (2001) “A Taxonomy of Business Process Modeling and Information
Systems
Graziano, A. M. & Raulin, M. L. (1997), Research Methods – A process of Inquiry,
3rd Ed. New York: Addison – Wesley Educational Publisher Inc.
Hackbarth, G. & Kettinger W.J. (2000) Building an e-Business strategy. Information
Systems Management 17(3), 78-9
Hammer, M. (2001) “The Superefficient Company”, Harvard Business Review, 79 (8),
82-91.
Page 61
Hammer, M. (2001) The Agenda: What Every Business Must Do to Dominate the
Decade. Random House, London.
Hammer, M. (2004) “Deep Change: How Operational Innovation can Transform your
Hendricks, K., Singhal, V. and Stratman, J. (2006) “The Impact of Enterprise Systems
on Corporate Performance: A Study of ERP, SCM and CRM System
Implementations”,
Hinson, Robert, and Richard Boateng, (2007) "Perceived Benefits And Management
Commitment To E-Business Usage In Selected Ghanaian Tourism Firms."
The Electronic Journal on Information Systems in Developing Countries ,
2007: 31, 5, 1-18.
Hoffman, D.L. and Novak, T. (2000) “How to Acquire Customers on the Web,”
Harvard Business Review, May-June 2000.
Howcroft, D. (2001) “After the Goldrush: Deconstructing the Myths of the Dot.com
Market” Journal of Information Technology, 16 (4), 195-20
http://www.apjii.or.id/dokumentasi/id_cs.pdf.
Indjikian, R. and Siegel, D.S., “The Impact of Investment in IT on Economic
Performance: Implications for Developing Countries “, World
Development (33: 5), 2005, pp. 681-700.
International Journal of Production Economics, 90 (2), 129-149.
Jennex, M. E., Amoroso, D.L., and Adelakun, O. B2B E-Commerce Infrastructure
Success Factors for Small Companies in Developing Countries, 2004, Idea
Group Inc.
Johnson and Scholes (1999) Exploring Corporate Strategy) 5th Edition
Johnston, R.B. 91998) Trading Systems and Electronic Commerce, Eruditions
Publishing, 1998.
Journal of Operations Management, 25 (1), 65-82.
Page 62
Judith E. Payne:E-Business Readiness for SMEs in Developing Countries: A Guide for
Development Professionals: Produced by Learn Link Academy for
Educational Development 1825 Connecticut Avenue, N.W. Washington,
D.C. 20009-5721, USA
Kalakota, R. and A.B. Whinston (1996),Frontiers of electronic commerce,
Reading,MA.: Addison-Wesley Publications CompanyInc.
Kalakota, R. and M. Robinson (1999), E-Business; Roadmap for success, Reading,
MA. Addison-Wesley
Kalakota, R. and Robinson, M. (2001) e-Business 2.0: Roadmap for Success. Addison-
Kalakota, R. and Robinson, M. (2003) Services Blueprint: Roadmap for Execution.
Addison-
Kalakota, Ravi, & Marcia Robinson (1999), e-Business: Roadmap to Success.
Reading, MA: Addison-Wesley.
Kettinger, W., Teng, J. and Guha, S. (1997) “Business Process Change: A Study of
Kirchmer, M. (2004) “E-Business Process Networks – Successful Value Chains
Through Standards”, Journal of Enterprise Information Management, 17
(1), 20-30.
Korper, Steffano, & Juanita Ellis (2000), The E-Business Book: Building the EEmpire.
San Diego, CA: Academic Press.
Kurnia, S.and Johnston, R.B. “Adoption of Efficient Consumer Response: Key Issues
and Challenges in Australia”, Supply Chain Management: An International
Journal, (8:2), 2003, pp 251-262.
Kurnia, S.and Johnston, R.B. “Adoption of Efficient Consumer Response: Key Issues
and Challenges in Australia”. Supply Chain Management: An International
Journal, (8: 2), 2003, pp 251-262.
Page 63
Kurnia, S.and Johnston, R.B. “The Issue of Mutuality in ECR Adoption: A Case
Study”. The Eighth European Conference on Information Systems, 2000,
Vienna, Austria.pp. 1009-1016.
Kurt Salmon Associates, Efficient Consumer Response: Enhancing Consumer Value in
the Grocery Industry, Food Marketing Institute, 1993, Washington, D.C.
Lacity, M. and Hirschheim (1993) Information Systems Outsourcing: Myths,
Metaphors and Realities, John Wiley.
Laudon, K. and Traver, C. (2008) E-Commerce: Business, Technology, Society. 4th
edition. Prentice Hall, Upper Saddle River, New Jersey.
Laudon, Kenneth C & Carol Guercio Traver (2003) E-Commerce: Business,
technology and society. 2nd edition. Pearson Addison Wesley, Boston.
Laymann, F., Roller, D. and Schmidt, M. (2002) “Web Services and Business Process
Le, T.T.L. and Koh, A.C., “A Managerial Perspective on Electronic Commerce
Development in Malaysia”, Electronic Commerce Research, (2), 2002, pp.
7-29.
Lee, H. and Billington, C. (1992) “Managing Supply Chain Inventory: Pitfalls and
Lee, Ook (1999), “An Action Research Report of an E-Business Firm in South Korea,”
in Sudweeks, Fay, & Celia T.Rom (Eds.), Doing Business on the Internet:
Opportunities on the Internet (pp. 246-258). London: Springer.
Louise Cote, Michel Vezina, Vincent Sabourin (2005). “The Strategic Management
Process in E-Business” Ivey Business Journal May-June 2005
Management”, IBM Systems Journal, 41 (2), 198-211.
Managerial Perspective. Prentice-Hall, Upper Saddle River, New Jersey.
Manhattan Associates. Achieve Total Industry Integration to Meet Quick Response,
Efficient Consumer Response and Efficient Foodservice Response
Requirements, 1998.
Page 64
March 2005 Volume I, Issue II
Mark Bynoe* “Electronic Commerce or Electronic Con – Benefits and Challenges for
the Caribbean”
McConnell International, (200) “Risk E-Business: Seizing the Opportunity of Global E-
Readiness” www.mcconnellinternational.comaccessed on 12/07/2008
Means, Grady, & David Schneider (2000), Meta Capitalism.New York: John Wiley &
Sons.
Mehrtens, J., Cragg, P.B. & Mills, A.M.. (2001) A model of Internet adoption by
SMEs. Information & Management, 39(3), 165-176.
Melão, N. (2008)” E-Business, E-Business PROCESSES AND E-Business
Melão, N. and Pidd, M. (2000) “A Conceptual Framework for Understanding and
Business
Mendo, F. and Fitzgerald, G. (2005), “Theoretical Approaches to Study SMEs
eBusiness Progression”, Journal of Computing and Information
Technology, vol. 13, No. 2, pp. 123-136.
Methodologies, Techniques and Tools”, MIS Quarterly, 21 (1), 55-98.
Michael Porter, (1979) “How Competitive Forces Shape Strategy” Harvard Business
Review March-April 1979.
Miles, M. B and Huberman, M.A 1994. : Qualitative Data Analysis; An expanded
Sourcebook. 2nd Ed. Sage Publication .Thousand Oaks CA
Minges, M. Kretek Internet: Indonesia Case Study, 2002, available at:
Ministry of Commerce, Consumer Affairs and Business Development
Modeling Techniques”, International Journal of Flexible Manufacturing Systems, 13
(2),
Page 65
Molla, A. Exploring the Reality of eCommerce Benefits Among Businesses in a
Developing Country, University of Manchester, Precinct Centre,
Manchester, 2005, UK, available at: URL:
http://www.sed.manchester.ac.uk/idpm/publications/wp/di/index.htm
Naichiamas, D. Frankfort-Naichiamas, C.1996: Research Methods in the Social
Sciences, 5th Ed. CA Arnold, Santa Crux
Namchul Shin (2001) “strategies for competitive advantage in electronic commerce’
Journal of Electronic Commerce Research, VOL. 2, NO.4, 2001
Neumann, W. L. (2006). Social Research Methods: Qualitative and Quantitative
Approaches.
Odedra-Straub, M.“E-commerce and Development: Whose Development?” Electronic
Journal on Information Systems in Developing Countries, (11:2), 2003, pp
1-5.
OECD (1997), Electronic Commerce, OECD Policy BriefNo.1-1997, Paris: OECD.
OECD, (2004.) ORGANISATION FOR ECONOMIC CO-OPERATION AND
DEVELOPMENT “ICT, E-BUSINESS AND SMEs “
Opoku Mensah, Aida, Assefa Bahta, and Sizo Mhlanga , (2005). E-commerce
challenges in Africa: issues , constraints, opportunitiesAI SI. Briefi ng
Paper, Tunis: Economic Commission for Africa.
Opoku Mensah, Aida, Assefa Bahta, and Sizo Mhlanga. (2005) E-commerce
challenges in Africa: issues, constraints, opportunitiesAI SI. Briefi ng
Paper, Tunis: Economic Commission for Africa.
Opportunities”, International Journal of Electronic Commerce, 7 (3), 7-37.
Opportunities”, MIT Sloan Management Review, 33 (3), 65-73
Palvia, Prashant, ShailendraPalvia, & Ed Roche (Eds.) (2002), Global Information
Technology and Electronic Commerce.Marietta, GA: Ivy League Publishing.
Page 66
Parish, A., Kibblewhite, G.Woodley, and M. Richardson,J. (2002) The UK
ElectronicIndustry E-Commerce Initiative: A study of the adoption of e-
commerce Report for theDTI.
Patton, M. Q. (2002). Qualitative evaluation and research methods (3rd ed.) Thousan
Oaks, CA: Sage Publication, Inc
Payne Judith E. ,E-Commerce Readiness for SMEs in Developing Countries: A Guide
for Development Professionals: Produced by LearnLink Academy for
Educational Development1825 Connecticut Avenue, N.W. Washington,
D.C. 20009-5721, USA
Peha, Jon M. (1999), “Lessons from Haiti’s Internet Development,” Communications
of the ACM, 42(6), 67-72.
Performance: A Latent Class of Assessment of Drivers and Impediments to Success”,
Peter S. Rose (1996): Banking Across State Lines Greenwood Publishing Group
Petrazzini, Ben, &MugoKibati (1999), “The Internet in Developing Countries,”
Communications of the ACM, 42(6), 31-36.
Plant, Robert (2000), eCommerce: Formulation of Strategy. Upper Saddle River, NJ:
Prentice-Hall.
Poon, S. & Swatman, P.M.C. (1997) Small business use of the Internet: Findings from
Australian case studies. International Marketing Review, 14(4-5), 385-203.
Poon, S. (2000) Business environment and internet commerce benefit – a small
business perspective. European Journal of Information Systems, 9(2), 72-
82.
Porter, M (1979). “How Competitive Forces Shape Strategy,” Harvard Business
Review,
Porter, M. “What is Strategy?” Harvard Business Review, November-December 1996,
pp.61-78.
Page 67
Porter, M. and Millar, V.E. (1985)“How Information Gives You Competitive
Advantage,” Harvard Business Review, 63(4),, pp. 149-160.
Porter, M. Competitive Advantage, New York: Free Press, 1985.
Porter, M. Competitive Strategy, New York: Free Press, 1980.
Porter, M. (1987)“From Competitive Advantage to Corporate Strategy,” Harvard
Porter, M. (2002)“Strategy and the Internet,” Harvard Business Review, On
ADVANCES IN STRATEGY. , pp.38-40.
Porter, M.( 2001)“Strategy and the Internet,” Harvard Business Review, pp.62-78.
Porter, Michael E. "Strategy and the Internet (2001)." Harvard Business Review,
March 2001: 63.
PricewaterhouseCoopersin association withGhana Association of Bankers,
(2006)Ghana Banking Survey
Proceedings of the 5th Americas Conference on Information Systems, 2000.
PROCESS MODELLING: A CRITICAL EXAMINATION AND A FRAMEWORK”
Processes and Business Process Modelling”, Information Systems Journal, 10 (2), 105-
129.
PWC - PricewaterhouseCoopers, Indonesia, Retail and Consumer Growth Dynamics
From New Delphi to New Zealand, 2003/2004, pp 58-65.
Rajput, Wasim E. (2000), E-Business Systems: Architecture and Applications.
Boston: Artech House.
Raman, K. and Yap, C. “From a Resource Rich Country to an Information Rich
Society: An Evaluation of Information Technology Policies in Malaysia”,
Information Technology for Development, (7), 1996, pp.109-131.
Page 68
Roberts, B and Toleman, M (2007) “One-size e-Business adoption model does not fit
all” Journal of Theoretical and Applied Electronic Commerce
Research archive
Robyn Smyth (2004).Exploring The Usefulness Of A Conceptual Framework As A
Research Tool: A Researcher's Reflections Issues In Educational Research,
Vol 14, 2004
Rosa Couto, R. L., 2002: Framework for Assessment of Bank Earnings- Financial
Stability Institute Award 2002 winning paper. Bank for International
Settlements, Basel, Switzerland.
Satyajit Das 2008: Bank Earnings – The "V", "U" Or "L" Recovery. Financial
Stability Institute.
Schiesel, S.“Planning the Digital Smorgasboard: For This Media Conglomerate, the
Future is All-You-Can-Eat,” The New York Times, June 11, 2001.
Schneider, G. (2002) Electronic Commerce. 3rd edition. Thomson.
Sealey, P. “How E-Commerce Will Trump Brand Management,” Harvard Business
Review, July-August 1999, pp.171-176.
Shane, S. (2000), Prior knowledge and the discovery ofentrepreneurial opportunities,
OrganizationScience, Vol.11, No.4, pp.448-469 Site Licensing and
Micropayment Systems,” Proceedings of Internet Publishing and Beyond:
The Economics of
Silverman, David 2001. Interpret ting qualitative Data. 2nd Ed. Sage Publication Ltd.
London
Singh, A. D. Electronic Commerce: Some implications for firms and workers in
developing countries, International Institute for Labour Studies, 2000,
Geneva.
Swanborn, P.G. (1987),Methoden van sociaal-wetenschappelijkonderzoek, Meppel:
Boom.
Page 69
Systems Journal, 17 (4), 369-389.
Tapscott, Don, David Ticoll, & Alex Lowy (2000), Digital Capital: Harnessing the
Power of Business Webs. Boston, MA: Harvard Business School Press.
Taylor, M. and Murphy, A. (2004), “SMEs and e-business”, Journal of Small
Teo, H.H., Wei, K.K., & Benbasat, I. (2003).Predicting Intention to Adopt
InterorganizationalLinkages: An Institutional Perspective. MISQuarterly,
27(1), 19-49
Tetteh, E.a. B. J. (2001) “Global strategies for SMe-Business: applying the
SMALLframework.” Logistics Information Management 14:1/2 pp171-180
Thornton, J. and Marche, S. (2003) “Sorting Through the Dot Bomb Rubble: How Did
the High-Profile e-Tailers Fail?”, International Journal of Information
Management, 23 (2), 121-138
TKTI – Indonesian Telematics Coordinating Team. Five-Year Action Plan for the
Development and Implementation of Information and Communication
Technologies (ICT) in Indonesia, 2001.
Travica, B.(2002) . Diffusion of Electronic Commerce in Developing Countries:The
Case of Costa Rica Journal of Global Information Technology
Management, 5(1), 2002, 4-24.
Travica, Bob, & Blaise Cronin (1996), “The Business Web in Russia: Usability for the
Western User,” Proceedings of the ASIS 1996 Conference, October 21-24,
1996, Baltimore, MD.
Travica, Bob, & Rebecca Olson (1998), “Usability of Business Web Sites in East and
Central Europe,” Proceedings of the ASIS 1998 Conference, October 24-
29, 1998, Pittsburgh, PA.
Treese, W.G. and Stewart, L.C. (1998). Designing for Internet Commerce, Addison-
Wesley, Longham, New York.
Trepper, Charles (2000), E-Business Strategies.Redmond, WA: Microsoft Press.
Page 70
Trochim, W. (2005). Research Methods: The Concise Knowledge Base. Cincinnatti,
OH: Atomic Dog Publishers
Troshani, I and Rao, S. ( 2007) “ Enabling e-Business Competitive Advantage:
Perspectives from the Australian Financial Services Industry International
Journal of Business and Information Volume 2, Number 1,
Tsai, Y. L. A comparison between traditional SCM and e-SCM, University of Stirling,
Scotland, UK., 2006
Turban, E., King, D., Viehland, D. and Lee, J. (2006) Electronic Commerce 2006: A
Turban, E.et al. Electronic Commerce: A Managerial Perspective, 2006, Prentice Hall.
UNCTAD - United Nation Conference on Trade and Development.“Can Electronic
Commerce be an Engine for Global Growth?” Electronic commerce and the
integration of developing countries and countries with economies in
transition, International Trade, 19-23 July 1999, Geneva.
Unhelkar, B., “Understanding the Impact of Cultural Issues in Global e-Business
Alliances”, 4th International We-B Conference, 24-25 Nov, 2003, Perth,
Western Australia.
Viehland, D.W. “Critical Success Factors for Developing an e-Business Strategy,”
Proceedings of the 5th Americas Conference on Information Systems,
2000.
Viswanathan, S.“A Model of Competition Between Online and Traditional Firms,”
Proceedings of the 5th Americas Conference on Information Systems,
2000.
Volume 2 , Issue 3 Pages 49-61
Wang, S. & Cheung, W. (2004). E-Business Adoption by Travel Agencies: Prime
Candidates for Mobile e-Business. International Journal of Electronic
Commerce, 8(3), 43-633. Chatterjee, D., Grewal, R. & Sambamurthy,
V.(2002). Shaping Up for E-Commerce:Institutional Enablers of the
Page 71
Organizational Assimilation of Web Technologies. MIS Quarterly, 26(2),
65-89
Wesley, Boston. Keen, P. and McDonald, M. (2000) The eProcess Edge: Creating
Customer Value and Business Wealth in the Internet Era. McGraw-Hill,
Berkeley.
Weiss, M. and Amyot, D. (2005) Design and Evolution of e-Business Models. 7th
International IEEE Conference on E-Commerce Technology (CEC 2005),
Munich, Germany, July 2005, 462-466.
Whitely, D.E-Commerce: Strategy, Technologies and Applications, 1998, McGraw
Hill.
Windrum, Pual &, De Berranger, Pascale. (2002) “THE ADOPTION OF E-USINESS
BY SMES”.
Yen-Yi H 2006. Trust Worthy Computing: Information Security and Management.
Yin, R.K 1994.Case Study Research: Design and Methods, applied Social Research
Methods Series, 2nd Ed. Sage Publishing, Newbury parl CA
Yin, Robert.K. (2003) Case Study Research. Design and Method.Thousand Oals,
California. Sage Publication
Zikmund, W.G. 1994. : Business Research Methods. 4th Ed. Fort Worth: The Dryden
Press
Zwass, V. (2003) “Electronic Commerce and Organizational Innovation: Aspects and
Opportunities
Page 72
Appendix
Questionnaire
Master of Science Thesis Research Questionnaires
Department of Business Management, Lulea University of Technology Sweden TOPIC: E-business, a strategic Option in a Competitive Banking Business Environment 1. Business Environment and Characteristics
Bank Name
Ownership Type
When was is established?
How many branches do you have all over Ghana
What is the extent of regional coverage in Ghana?
Target Customers
Major Competitors
2. E-business Adoption
Has the bank adopted e-business
Page 73
When was e-business adopted?
Why was e-business adopted?
What are some of your
e-business products
Has the bank’s turnover increased
since the adoption of e-business?
What is the margin?
3. Barriers to e-business adoption
The following are some barriers companies face when adopting e-business. Kindly indicate
which one is applicable to you.
Barriers Yes No
Lack of applicability to the business
Preference for established business models E.G a lot of paper works
Unsuitability for the type of business
Enabling factors (such as availability of ICT skills, qualified personnel, network infrastructure
Page 74
Barriers Yes No
Cost factors (such as costs of ICT equipment and networks, software and re-organization)
Security and trust factors
ICT competencies within the firm
Availability and cost of appropriate interoperable systems
Network infrastructure and Internet-related support services
Cross-country legal and regulatory differences
Any other barriers? Please state below:
4. Benefits in e-business adoption
The following are some benefits companies derive from adopting e-business.
Kindly indicate which one is applicable to you
Page 75
Benefits Yes No
Value creation or value enhancement
lower cost of doing business
Improvement in internal and external communication
Increment of sales
integrated with a back office systems
Improvement in supplier relations
Improvement in Productivity
cost saving
revenue generation
Page 76
Benefits Yes No
Increased market share
marketing and market access
improving customer service
speed and efficiency
expand geographical reach
reduces barriers to entry for new market
facilitates development of new products and new business models
Page 77
5. Challenges in e-business adoption
The following are some challenges companies face when adopting e-business.
Kindly indicate which one is applicable to you
Challenges Yes No
Low level of economic development
small per-capita incomes
Limited skills base
Lack of familiarity
cultural reluctance.
Availability of information and communication infrastructure
Cost of implementation
Page 78
Challenges Yes No
Security concerns
perceived customer readiness
knowledge of IT and e-Business
high costs associated with investments in ICTs
lack of technical and managerial skills
reluctance on the part of companies to network with other enterprise
lack of executive support
organizational type and culture
Any other challenge? Please state
