“LITERATURE REVIEW”

Submitted to

Jiwaji University, Gwalior

DOCTOR OF PHILOSOPHY

In

MANAGEMENT

Under the Faculty of Management

Supervisor Submitted by Dr. DILIP SINGH RANA Sazid Khan Assistant Professor Research Scholar M.L.B Govt.College OfExcellence Gwalior (M.P.)

Purpose of the Study

Today the trend E-commerce has attracted increasing interest at the beginning of the 21st century, in both academia and practice. Today, the Internet is commonly used by both consumers and businesses as a means of purchasing goods. The study focuses on e-commerce logistics, focusing on the physical delivery of goods sold over the Internet. Based on a systematic review of articles will summarize and analyze the main findings of academic literature and highlight certain research issues recognized on this topic. The main objective is to study the state-of-the-art of e-commerce logistics research and future research needs. The largest categories discuss e-commerce logistics in relation to retail strategies, logistics strategies and structures, and buyer preferences. Although logistics is a critical part of e-commerce, it seems based on the review that not many e-commerce logistics solutions have been developed or studied in current research, and logistics has often been treated as only a minor issue among other issues in e-commerce. In order to gain an appreciation of these and related issues, it is essential for me to have a strong grounding in Economics, Supply Chain Management, and issues connected with Information Technology, as well as gain a General Management perspective.

Electronic commerce, commonly known as E-commerce or eCommerce, is trading in products or services using computer networks, such as the Internet. Electronic commerce draws on technologies such as mobile commerce, electronic funds transfer,supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web for at least one part of the transaction's life cycle, although it may also use other technologies such as e-mail. The study “Electronic commerce” and main purpose of the study is to identify the problems facing by the consumer online product and services , investigate the how to solve it and justify the problems of online shopping or online serivces in India.

Evolution of e-commerce in India

Over the last two decades, rising internet and mobile phone penetration has changed the way we communicate and do business. E-commerce is relatively a novel concept. It is, at present, heavily leaning on the internet and mobile phone revolution to fundamentally alter the way businesses reach their customers. While in countries such as the US and China, e-commerce has taken significant strides to achieve sales of over 150 billion USD in revenue, the industry in India is, still at its infancy. However over the past few years, the sector has grown by almost 35% CAGR from 3.8 billion USD in 2009 to an estimated 12.6 billion USD in 2013. Industry studies by IAMA I indicate that online travel dominates the e-commerce industry with an estimated 70% of the market share. However, e-retail in both its forms; online retail and market place, has become the fastest-growing segment, increasing its share from 10% in 2009 to an estimated 18% in 2013. Calculations based on industry benchmarks estimate that the number of parcel check-outs in e-commerce portals exceeded 100 million in 2013. However, this share represents a miniscule proportion (less than 1%) of India’s total retail market, but is poised for continued growth in the coming years. If this robust growth continues over the next few years, the size of the e-retail industry is poised to be 10 to 20 billion USD by 2017-2020. This growth is expected to be led by increased consumer-led purchases in durables and electronics, apparels and accessories, besides traditional products such as books and audio-visuals.

E-commerce logistics models: A radical shift from regular logisticsThe strong emergence of e-commerce will place an enormous pressure on the supporting logistics functions. The proposition of e-commerce to the customer is in offering an almost infinite variety of choices spread over an enormous geographical area. Firms cannot compete solely based on sheer volumes in today’s ever-evolving, information symmetric and globalised world of e-commerce. Instead, the realm of competition has shifted to delivering to ever-shortening delivery timeliness, both consistently and predictably. Negligible or zero delivery prices, doorstep delivery, traceability solutions and convenient reverse logistics have become the most important elements of differentiation for providers. While the current logistics challenges relating to manufacturing and distribution of consumer products and organised retail are well-known, the demands of e-commerce raise the associated complexities to a different level. E-commerce retailers are wellaware of these challenges and are cognizant of the need to invest in capital and operational assets.

Reaching the customer:Going beyond the traditional definitionThe essence of e-retailing is in its ability to transcend physical boundaries and reach customers in a manner different from the traditional brick-and- mortar stores, to their very doorstep. However, the base of the e-retailing model is technology and logistical solutions that facilitates the customer acquisition and the final ‘reach’ process. E-commerce further brings to the table vagaries in customer orders accompanied with difficult scenarios such as free delivery, order rescheduling, cancellation, returns and cash-on-delivery. Additionally, an expected minimized turn-around-time (TAT) which will potentially lead to word-of-mouth publicity, feedback and customer retention to the e-portal or website. An information network which shares updated information with respect to inventory status, demand schedule sand forecasts, shipment schedules and promotion plans among all the stakeholders of the supply chain will form the backbone of an e-retailer.

Need for different management of physical infrastructureThe business model of the conventional retailers and e-commerce providers differ significantly. The conventional infrastructure model relies on increasing depth and breadth of coverage through several inventory nodes, warehouses and stocking points connected by based on various other factors ranging from production cycles, nature and variety of the SKUs to even local taxation laws. The conventional order point occurs at retail stores and static customer fronts located at the end of the chain, and inventory requirements are predicted empirically based on several months or years of past data. In fact, competing sales channels may also duplicate infrastructure, an indication of the typical sub-ordination of the logistics function within the overall sales and distribution process.

On the other hand, e-commerce providers operating either through inventory-le or marketplace models, are entering an entirely different paradigm of operations, where management of the supply chain is core to the business of creating more business. With real-time demand and tight delivery expectations, the supply chain needs to be built from the customer-end, with the fundamental difference being the proliferation of delivery points and the need to move large number of orders of small parcels (one or two goods) across the length and breadth of the country at an affordable cost In India, foreign direct investment (FDI) within the business-to-consumer (B2C) e-commerce segment is not allowed where as foreign investment in the business-to-business (B2B) e-commerce segment is allowed. This means that inventory led e-retailing model cannot attract FDI whereas market-place based e-retailing model can still attract FDI. Most e-retailers have started practicing the market-place business model with suppliers storing on their behalf and delivering as per the requirement and thus falling under the B2B category.

The need to build infrastructure for increased agilityThe key to success in e-commerce is an efficient last-mile network to ensure timebound delivery while maintaining agility in the logistics chain. The fundamental SKU at the delivery point is a ‘parcel’, of varying shapes and sizes, while the pin-codes of the operation become the determinant of the last-mile network model. The up-stream infrastructure will then need to be built as a layer over this last-mile network with strategic location choices of fulfillment centers proximal to delivery modes. The operations will need to be tightly controlled in such a way that the inventory stocks are converted to parcels and pushed down the chain efficiently, as well as that the fulfillment centers are replenished. The balance between inventory and supply chain costs is therefore a dynamic decision to be taken, considering both cost and service level considerations. While the conventional logistics models have evolved in a way to expand reach for businesses at the lowest cost in a ‘push’ model, e-commerce businesses will feel the need for greater agility in their supply chain that will be more responsive to customer demands that are variable and less predictable. The sheer variety of the product and destination choices and fulfillment modes will mean that the provider cannot afford to stock the entire supply chain with sufficient inventory to fulfill customer needs. The customer order point will need to be pushed further upstream, from where ‘pull’ from the customer is recognized, tracked and met through rapid fulfillment methods.

The implications of product choices on networks infrastructureThe network design and the agility of the supply chain will also be influenced by the products carried. E-retailers have been able to attract significant customers to online buying but these are still limited to very exclusive categories such as consumer electronics, apparels and lifestyle, books, music and video. In the future, other categories such as food and beverages, departmental store, home furnishings, auto parts, healthcare and office equipment will also see increased e-commerce activity. It is important to note that each product category will have its own customized logistics requirements which can alter the balance between inventory and supply chain costs. Within the apparel and lifestyle category, for example, localized suppliers or warehouses can be used to good effect in tune with the buying patterns and ensuring seasonal inventory replenishment. For books, music and video, a large centralized inventory for a large region may be better suited. For consumer electronics and durables, which have lesser SKU proliferation, higher product value and higher security and handling needs, a JIT and direct fulfillment model may need to be put in place. For hot and cold merchandising, localized sourcing and continuous availability of temperature controlled infrastructure throughout the supply chain becomes the critical need. The challenge is to ensure that the supply chain needs of the specific product segments are married with customer propositions that offer better customer value than traditional retail models.

Logistics infrastructure to be the weakest link in the Indian e-commerce storyLogistics in developing economies such as India may act as the biggest barrier to the growth of the e-commerce industry. Till date, logistics models developed in India target the metropolitan and the Tier-1 cities where there is a mix of affluent and middle classes and the internet penetration is adequate. In India, about 90% of the goods being ordered online are moved by air, which increases the delivery costs for the e-retailers. Most e-retailers were initially dependent on third party delivery firms. However as the market evolves and customer expectations increase, city or geography centric service levels are becoming the need of the hour. Moreover, issues specific to e-retailing such as the problems associated with fake addresses, cash-on-delivery and higher expected return rates have made e-retailers consider setting up their captive capital intensive logistic businesses. For instance, Flipkart has set up several regional warehouses and is constantly increasing the supplier base across the country to achieve low transportation cost by ensuring delivery from the nearest supplier or regional warehouse. Flipkart is growing its logistics arm E-Kart whereas Amazon India is building capacities with its logistic arm Amazon Logistics. While establishing the captive logistics infrastructure was a consequence of need for better service delivery by actively controlling the logistics chain, it has pushed up the delivery costs. According to industry benchmarks, the delivery cost in the captive logistics models are 10 to 20% expensive than the 3PLs whose expertise lies in quick delivery at an affordable cost. Further, the logistics set-up and requirements in developing countries are also dependent on the purchasing behaviour of the customers

These factors will call for strengthening the logistics infrastructure and increased number of failing which the e-retailers will have to start up or strengthening their own logistics counterparts. Higher delivery costs can result in withdrawal of free delivery by e-retailers on the back of high delivery costs and complex business models threatening already wafer-thin business margins.

Infrastructure will demand a large proportion of investment in e-commerceActive management of logistics, infrastructure and service levels is core to the e-commerce business in any market. E-retailers need to have a hybrid model of their own captive logistics arm which takes care of their specific business model needs and strictly monitored service leve agreements with 3PLs to rationalise the delivery costs.

The future competitors and winners in the e-retailing space will be the ones which will use both bricks and clicks and not bricks or clicks alone. This is evident from the evolving logistics and storage strategy of Amazon in the US. Amazon has changed its logistics network from the ‘sell all, carry few’, model to the ‘sell all, carry more’ model and increased the number of warehouses across the US. This eventually proved beneficial for Amazon as the increased number of warehouses led to both better reach and range for the suppliers and customers which eventually resulted in faster service delivery and increased customer retention. Amazon is further investing 14 billion USD in increasing its warehouses’ base by 50 in the US.

Strictly monitored service level agreements with 3PLs which have developed the expertise and skills to handle the vagaries of the customers in the e-commerce space has proven beneficial for e-retailers as they are able to outsource the skills best suited to the 3PLs. A successful example in terms of usage of SLAs with 3PLs is of eBay which has partnered with couriers and allied service providers for the logistics with closely controlled SLA

Recent years have seen a remarkable transformation in Firms across the globe have adopted e-commerce (EC) in their operations and have reaped benefits thereof. While firms in technologically developed countries like US and UK has deployed EC to its advantage, whereas firms in developing countries like India failed to follow the suit. Though it has been widely acknowledged by the researchers that the adoption of EC by businesses in developing countries is an important economic indicator of growth; many firms in India still have not realized the potential benefits of EC. This study examines the existing status of EC in India and reviews the available literature on E-commerce adoption in India and puts forth opportunities for future research. The study might serve as a starting point for further research in e-commerce in India.

Introduction

E-commerce (electronic commerce or EC) is the buying and selling of goods and services,

or the transmitting of funds or data, over an electronic network, primarily the Internet. These business transactions occur either business-to-business, business-to-consumer, consumer-to-consumer or consumer-to-business. The terms e-commerce and e-business are often used interchangeably. The term e-tail is also sometimes used in reference to transactional processes around online retail.

Electronic commerce, commonly known as E-commerce or eCommerce, is trading in products or services using computer networks, such as the Internet. Electronic commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web for at least one part of the transaction's life cycle, although it may also use other technologies such as e-mail.

Firms across the globe have adopted e-commerce (EC) in their operations and have reaped benefits thereof. While firms in technologically developed countries like US and UK has deployed EC to its advantage, whereas firms in developing countries like India failed to follow the suit. Though it has been widely acknowledged by the researchers that the adoption of EC by businesses in developing countries is an important economic indicator of growth; many firms in India still have not realized the potential benefits of EC. This study examines the existing status of EC in India and reviews the available literature on E-commerce adoption in India and puts forth opportunities for future research. The study might serve as a starting point for further research in e-commerce in India.

E-commerce is conducted using a variety of applications, such asemail, fax, online catalogs and shopping carts, Electronic Data Interchange (EDI), File Transfer Protocol, and Web services. Most of this is business-to-business, with some companies attempting to use email and fax for unsolicited ads (usually viewed as spam) to consumers and other business prospects, as well as to send out e-newsletters to subscribers.

The benefits of e-commerce include its around-the-clock availability, the speed of access, a wider selection of goods and services, accessibility, and international reach. Its perceived downsides include sometimes-limited customer service, not being able to see or touch a product prior to purchase, and the necessitated wait time for product shipping.

Economists have theorized that e-commerce ought to lead to intensified price competition, as it increases consumers' ability to gather information about products and prices. Research by four economists at the University of Chicago has found that the growth of online shopping has also affected industry structure in two areas that have seen significant growth in e-

commerce, bookshops and travel agencies. Generally, larger firms are able to use economies of scale and offer lower prices. The lone exception to this pattern has been the very smallest category of bookseller, shops with between one and four employees, which appear to have withstood the trend.

Individual or business involved in e-commerce whether buyers or sellers rely on Internet-based technology in order to accomplish their transactions. E-commerce is recognized for its ability to allow business to communicate and to form transaction anytime and anyplace. Whether an individual is in the US or overseas, business can be conducted through the internet. The power of e-commerce allows geophysical barriers to disappear, making all consumers and businesses on earth potential customers and suppliers. eBay is a good example of e-commerce business individuals and businesses are able to post their items and sell them around the Globe.

To ensure the security, privacy and effectiveness of e-commerce, businesses should authenticate business transactions, control access to resources such as webpages for registered or selected users, encrypt communications and implement security technologies such as the Secure Sockets Layer.

E-commerce businesses may employ some or all of the following:

Online shopping web sites for retail sales direct to consumers Providing or participating in online marketplaces, which process third-party business-to-

consumer or consumer-to-consumer sales Business-to-business buying and selling Gathering and using demographic data through web contacts and social media Business-to-business electronic data interchange Marketing to prospective and established customers by e-mail or fax (for example, with

newsletters)Engaging in pretail for launching new products and services

GLOBLE TRENDS

In 2010, the United Kingdom had the biggest e-commerce market in the world when measured by the amount spent per capita. The Czech Republic is the European country where ecommerce delivers the biggest contribution to the enterprises´ total revenue. Almost a quarter (24%) of the country’s total turnover is generated via the online channel.

Among emerging economies, China's e-commerce presence continues to expand every year. With 384 million internet users, China's online shopping sales rose to $36.6 billion in 2009 and one of the reasons behind the huge growth has been the improved trust level for shoppers. The Chinese retailers have been able to help consumers feel more comfortable shopping online. China's cross-border e-commerce is also growing rapidly. E-commerce transactions between China and other countries increased 32% to 2.3 trillion yuan ($375.8 billion) in 2012 and accounted for 9.6% of China's total international trade  In 2013, Alibaba had an e-commerce market share of 80% in China.

Other BRIC countries are witnessing the accelerated growth of eCommerce as well. Brazil's eCommerce is growing quickly with retail eCommerce sales expected to grow at a healthy double-digit pace through 2014. By 2016, eMarketer expects retail ecommerce sales in Brazil to reach $17.3 billion. India has an internet user base of about 243.2 million as of January 2014. Despite being third largest user base in world, the penetration of Internet is low compared to markets like the United States, United Kingdom or France but is growing at a much faster rate, adding around 6 million new entrants every month. The industry consensus is that growth is at an inflection point. In India, cash on delivery is the most preferred payment method, accumulating 75% of the e-retail activities.

E-Commerce has become an important tool for small and large businesses worldwide, not only to sell to customers, but also to engage them. In 2012, ecommerce sales topped $1 trillion for the first time in history.

Mobile devices are playing an increasing role in the mix of eCommerce. Some estimates show that purchases made on mobile devices will make up 25% of the market by 2017.

According to Cisco Visual Networking Index, in 2014 the amount of mobile devices will outnumber the number of world population.

Review of Literature

The work contributes to e-Commerce research by advocating the study of emergent problems relevant to both theory [Benbasat and Zmud 2003, DeSanctis 2003, Ives et al. 2004, Robey 2003] and practice [Gray 2001, Jennex 2001, Khazanchi and Munkvold 2001]. Specifically, we provide evidence that little scientific work in electronic commerce has investigated the role of suppliers, investors, regulators, and indirect stakeholders such as the media.

The customer class refers to any organization or individual for which the NEO provides goods or services. These include individual consumers in B2C e-Commerce and purchasing organizations in B2B e-Commerce who obtain the NEO’s good or service in exchange for money. Communities can also be considered customers, especially when the community’s purpose is to facilitate a commercial relationship with a NEO. Customer communities include strategic communities formed by the NEO [Storck and Hill 2000, Ward 2000] or communities that employ extra-NEO resources to communicate such as the UseNet newsgroup alt.marketing.online.ebay [Chua and Wareham 2004].

According to Significant Success factors for E-Commerce companies which recognized by Sung, there are customer relationship and privacy of information, low cost operation, ease of use, E-Commerce strategy, methodological E-Commerce expertise, immovability of systems, security of systems, prosperity of information, variety of goods/services, speed of systems, payment process, services, delivery of goods/services, low price of goods and services, and assessment of E-Commerce operations.

To ascertain which stakeholders have been investigated by e-Commerce researchers, we reviewed abstracts of all publications in seven journals for the period January 1990 to June 2003. The journal basket chosen included: MIS Quarterly (MISQ), Information Systems Research (ISR), International Journal of Electronic Commerce (IJEC), Electronic Commerce Research and Applications (ECRA), Electronic Markets (EM), Journal of Management Information Systems (JMIS), and Journal of Electronic Commerce Research (JECR). These journals included seven of the nine top e-Commerce journals as identified by Bharati and Tarasewich [Bharati and Tarasewich 2002]. Two other journals identified in this top nine, Communications of the ACM and Harvard Business Review, were excluded for two reasons. First, both journals publish a large number of articles per issue, and thus coding and analysis of these journals presents a serious challenge. Second, most of these articles were not directly relevant to e-Commerce, e.g., articles dealing with implementation prototypes or doing business in China. While special issues on e-Commerce have appeared in both journals, the proportion of research directly relevant to e-Commerce is relatively small. The high volume and difficulty of the coding and the low payoff made analysis of these two journals impractical and unnecessary.

A review of seven e-Commerce journals may not be reflective of the entire e-Commerce landscape. Were we to include other reputable journals like Management Science or Decision Support Systems in our journal basket, results could differ [Chua et al. 2003]. Nevertheless, the seven journals identified publish the vast majority of high quality e-Commerce articles, and therefore articles within these seven journals are more likely to be circulated in the e-Commerce community (as opposed to the broader IS community). Thus, even if research on neglected stakeholders is published in other venues, such research is less likely to have a high impact. Indeed, if quality research on the neglected stakeholders were appearing in significantly greater proportions elsewhere, this would suggest that the editorial policies of our top e-Commerce journals may need to be revisited.

Our main findings suggest that e-Commerce research focuses on a relatively small portion of the e-Commerce phenomenon. This is not surprising given the fledgling status of e-Commerce research and practice [Jawahar and Mclaughlin 2001]. This may also align with the focused interests of IS researchers. For example, in reviews of the trust literature, both Shankar et al. [2002] and Gefen et al. [2003] report that most trust research has narrowly concentrated on the customer and the internal organization.

Our finding is consistent with the prediction of stakeholder theory that NEOs would focus on specific stakeholders at particular stages of their life cycle [Jawahar and Mclaughlin 2001]. When a NEO begins life, it is important for it to attract customers, and to ensure that it keeps its own costs under control. As the dot-com bust vividly demonstrated, failure to manage customers and internal organizational stakeholders can cause the demise of NEOs.

According to Significant Success factors for E-Commerce companies which recognized by Sung, there are customer relationship and privacy of information, low cost operation, ease of use, E-Commerce strategy, methodological E-Commerce expertise, immovability of systems, security of systems, prosperity of information, variety of goods/services, speed of systems, payment process, services, delivery of goods/services, low price of goods and services, and assessment of E-Commerce operations.

It’s based on the theoretical model of consumer acceptance of the virtual stores proposed by Chen et al. the Significant Success factors are product offerings, the usability of storefront, the perceived service quality, and the perceived trust.

For E-Commerce success, Turban et allotted the CAFs which are the user-friendly of Web interface, delivery of specific and high-value services or products, its support of top management and technical infrastructure, level of trust between buyers and sellers, security and control of the E-Commerce system, the customer acceptance, the mass customization, competition and the market situation, the optimization of scope of business, and creating new partnerships and alliance.

According to Dubelar declared that the CAFs presented by the companies succeed in B2C e-business adoption is the combination of strong customer attention, it’s clearly distinct the performance measures, a clear link between value intention and measures,

and the incremental development process.

According to Viehland identified the six factors Significant to the success of the e-business strategy as to create a consumer-centric strategy, to accept outsourcing to improve business performance, to act like a new entrant, to the utilize information management to differentiate company’s product, to be part of an e-business community, and to require executive leadership.

According to Eid grouped the CAFs for business-to-business international Internet marketing successful implementation into five related factors, which are marketing strategy related factors, web site related factors, global related factors, internal related factors, and external related factors. Each group comprised of several factors.

Institutions to compete in the E-Commerce market. They involve E-Commerce strategy of the innovation, risk tolerance, the communication network and size of company assets.

According to N. Madeja and D. Schoder investigated the web characteristics as significant success factors for web sites. Their investigation found that interactivity and immediacy are success factors for B2B web sites. Further, for B2C web sites, there are four success factors including media richness and –variety, availability and ease of use.

According to Jennex discussed the key infrastructure factors for setting up B2B e-commerce enterprise in developing countries. They are people factors and technical infrastructure factors, the client interface factors, the business infrastructure factors, and regulatory environment factors. Each factor consists of several attributes. The Knowledge of workers and the worker technical skills, faith in the relationship between client and provider, knowledgeable client contacts, the client contacts that can speak with the provider’s language, and client contact methods are considered Significant. Moreover, client interface factors are considered the most Significant among these five factors.

There are even instances of neglected stakeholders shaping e-Commerce technology. The Recording Industry Association of America spurred the development of distributed peer-to-peer file sharing when it sued Napster into bankruptcy [Collins 2002]. Peer-to-peer software developers transferred accountability to users, and thus new technologies that hide user identities are emerging [Germain 2004]

According to Liu &Arnett obtained four major factors that are Significant to the Web site success in the E-Commerce from a research model derived from applying both the information systems and marketing literature. The variables were defined to measure each factor. After the factor analysis, the Significant factors include information and service quality, system use, playfulness and system design quality. Most of the existing studies mentioned about the Web site related factors technology and infrastructure factors and business related factor Even though there are some customer related factors, yet some factors are not considered.

This maturation of organizations and subsequent prioritization of stakeholders forms the central tenet of this paper. We argue that research on e-Commerce has focused myopically on the most obvious and extant phenomena. However, these phenomena only

reflect the initial stages of the e-Commerce life cycle. We further argue that it is possible to predict how e-Commerce interests (and therefore academic interests) will evolve as e-Commerce matures. This prediction is carried out by identifying the universe of stakeholders [Clarkson 1995, Friedman and Miles 2002, Wolfe and Putler 2002] and removing from that universe those stakeholders that have already been addressed (see also Watson and Straub [2004], who likewise focus on a stakeholder perspective in forecasting IS research in e-Commerce). The remaining stakeholders will be the focus of future academic research.

Some research themes identified here are arguably not relevant to IS researchers, but would be relevant to the broader community of e-Commerce researchers. However, some of these themes could become relevant when instantiated as specific research questions. The practice of studying a non-disciplinary research theme from a disciplinary perspective is commonly accepted in the multidisciplinary IS field. For example, customer acceptance of a product is traditionally considered to be of high relevance to marketing. However, through the Technology Acceptance Model (TAM) [Davis 1993], the theme has also been favored in IS studies of customer acceptance of technologies. Conversely, IS and e-Commerce researchers are also comfortable in applying methodologies and theories from other disciplines to IS problems. For example, much of the IS trust literature relies on psychometric principles to determine whether a particular IS stakeholder group trusts another [Gefen et al. 2003, Shankar et al. 2002]. Increasingly saturated e-Commerce markets provide an ideal natural laboratory to test how organizations adapt to hostile environments. IS researchers confident in their theories should be able to predict how emerging e-Commerce markets will evolve. As but one example, a useful test would compare the explanatory and predictive power of institution theory and population ecology theory [Baum and Singh 1994, Hatch 1997]. Institution theory predicts that NEOs will become more alike for three reasons. First, competitive NEOs will begin to duplicate successful IT practices, and strategies in their industry. Furthermore, once the legal foundations for e-Commerce have been established, NEOs will be required by law to comply, making them more like each other. Finally, NEOs will mimic their competitors in order to steal valuable customers [Hatch 1997]. On the other hand, the population ecology literature predicts that as markets become saturated, there will be more heterogeneity as individual NEOs specialize and adapt to their own ecological niche [Baum and Singh 1994]. By segmenting the market, each NEO is thus able to obtain monopoly rents.

One proposition suggested by both institution theory and population ecology is that innovation in hypercompetitive e-Commerce markets will be unprofitable. A competitor will engage in some form of negative interaction (e.g., mimic the innovation) that negates the advantage of innovation [Barnett and Hansen 1996]. Thus:

The Schumpeterian hypothesis suggests that innovation only occurs when the innovating organization can expect to obtain some monopoly benefit [Quirmbach 1993, Schumpeter 1942, Segerstrom and Zolnierek 1999]. As a market becomes more competitive, competitors are better able to mimic each other and copy innovations. The Schumpeterian hypothesis therefore suggests the following proposition:

The research question is also challenging, given that it can be approached from multiple perspectives. For example, a network externality perspective would suggest that e-Commerce markets do not become more competitive over time. Instead, network externalities, or other factors give particular companies monopoly power [Basu et al. 2003]. Late entrants are unable to compete, and the first-movers have an incentive to innovate. However, not all e-Commerce markets have such network externalities. Indeed, the first-mover/late-mover literature would argue that in many cases, it is preferable for a company to be a late mover, rather than an early mover [Boulding and Christen 2001, Makadok 1998, VanderWerf and Mahon 1997]. That so many theories can be applied to explain the contradiction between the Schumpeterian hypothesis and reality suggests the complexity of the problem.

The Culture is always viewed as a collective experience. People learn patterns of thinking, feeling, and the potential acting from living within a defined the social environment, normally typified by country. In India, people use the Internet as a social communication device. On the other hand, in the U.S, they tend to use the Internet more for product information and many more search purpose. E-Commerce is using the Internet to develop more market and enhance more customers with a low cost of investment. However, the purposes of using the Internet are different because of cultural differences. In addition, it’s compare to other country likes Chinese like to have face-to-face communication when they do the shopping as to get the best deal from the shop but most of Japanese do not ask for any discount and have little conversation when they go shopping. This leads to the following hypothesis:

The problem is also highly relevant to IS and e-Commerce researchers. First, e-Commerce markets are clearly within the purview of e-Commerce research. Second, one strength of IS and e-Commerce research is the plurality of theories from the multitudinous reference disciplines we are comfortable with.

One key emerging problem in Internet regulation is how governments can enforce regulations on the Internet, especially given that individuals on the Internet are often anonymous [Akdeniz 2002], and Internet commerce spans multiple nations and states [Jarvenpaa et al. 2003]. For example, the US CAN-SPAM act has been ineffectual in reducing SPAM [Rainee and Fallows 2004] primarily because enforcement of the act has been thorny.

The aims to review the studies of Significant Success factors of the E-Commerce, and to identify Significant Success factors, which are out of the framework of business management. These factors cannot control or managed by the company. Here we propose to five factors, which are culture, religion, personal characteristic, language, and government are supports. Keywords: E-Commerce, Significant Success factor, corporate management

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