ABSTRACT
The evolution and increasing adoption of Electronic Business
across sectors and continents has influenced businesses in many ways including,
improvement in their operational efficiency, profitability, and to strengthen
their competitive position globally. As a result, Ghana has supported this new
wave through the enactment and establishment of legislations and institutions
respectively. With the hospitality industry, particularly hotels, in Ghana
increasingly adopting different models of e-business, this study looks at the
most common types of e-business applications, the common concerns of implementation
and the general benefits associated with e-business adoption. The study adopted
purposive sampling technique and used both primary and secondary data through
questionnaires, interviews and various desk reviews. Amid other findings, the
study shows that whiles e-business improves fast exchange of documents and
information and general customer services, its associated costs (such as
computers, internet cost) presents a major barrier to its adoption. The study
recommends further government interventions through improvement in
telecommunication infrastructure such as fiber optic cables and the potential
introduction of a price ceiling for the cost of internet connectivity Ghana.
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
The evolution and increasing
adoption of Electronic Business across sectors and continents has influenced
businesses in many ways including, their strategies, performances, marketing,
etc. Today, we see customers and business operators use ICT and other
electronic media (such as the internet) to conduct commercial transactions,
communicate, obtain feedback, store information, market products, and even
manage day to day operations. The adoption of E-business, however differ across
sectors, organizations, and geographical horizons based on its intended
objectives, benefits, and existing infrastructure (Daniel and Wilson 2003;
Eikebrokk and Olsen 2007; Tallant 2011). These factors include the enactment of
clear national legislative framework that allows for easy accessibility to ICT
infrastructure, the availability and accessibility internet and intranet
infrastructure, and improved ability of people to use the internet (ibid). In
addition to the existing infrastructure and legislative frameworks, some of the
perceived benefits of e-business adoption include competitive advantage gains,
increased productivity, accomplishing business goals faster, and improvement in
customer service and, communications with businesses, and supplier relations,
(Baggio, 2004).
The World Trade Organization (WTO)
narrowly defines E-business as the production, distribution, marketing, sale or
delivery of goods and services by electronic means. Specifically, the internet
has become undoubtedly the most prominent tool in today's business environment
creating a flatter and more interconnected market. This has been mainly
attributed to the recent advances in telecommunications, networking database, data processing, and
electronic marketing. On the other hand, the use of internet by business
clients, customers, and partners have shown a very rapid growth during the last
decade in most parts of the world, but more so in developing countries
(reported by Globalization 101, 2014). According to the internet society’s
Global Internet Report (2014), the world internet users are estimated at 2.2
billion, with developing countries having more than 50 percent of the mobile
broadband subscribers. This means not only has internet accessibility at homes,
work, or other internet locations like cafes increased in developing countries
but also cell phones and dongles. Interestingly, the growth in the adoption of
broadband and access to internet has also shown a responding increase in the
GDP of developing countries. Ghana is not an exception to this.
This increase in internet
accessibility notwithstanding, Ghana is still considered one of the world’s
less digitized countries with a low percentage of its population that actively
conduct business online. As of 2011, about 2 million out of its estimated 24
million populations were active internet users representing 8.4 percent (ITU,
2012). The adoption of E-business in Ghana has grown significantly since 2005,
after the government of Ghana (GoG) ratified and adopted an ICT policy –
Information and Communication Technology for Accelerated Development (ICT4AD).
The purpose of the ICT4D was to create the critical drive and strategies to
harness the full potential of ICT for the socio-economic development of the
country in most industries. Hence, the Internet technologies are important
infrastructure for supporting the activities of a number of public and private
sector in Ghana.
Following the increasing adoption
of internet in Ghana, the recent availability of e-commerce software and
supporting legislation and institutions has radically supported the adoption of e-business in
different sectors. The hospitality industry, specifically hotels, has
increasingly adopted innovative technologies to manage and market their
services online. The benefits of e-business adoption may have been known to
outweigh its cost (Gibbs et al., 2002). Nonetheless, it has become a necessary
condition for hotels to operate effectively and efficiently in order to gain
competitive advantage. As a result, it appears a reasonable decision for many
hotels to explore e-business opportunities to provide new prospects for
business development as globalization of markets and doing business
internationally has become gradually important.
In recent times, it is uncommon to
find a hotel, which does not have an online presence or not least, a social
media presence. Although hotels are becoming increasingly cognizant of the
opportunities presented by the adoption of e-business, (including ICT mediated
services such as electronic booking, online payment, online customer rating,
online marketing, connecting suppliers, partners, etc.), the sustainability of
E-business strategies to keep up with global competition remains a challenge.
To be competitive in the current internet economy, hotels in Ghana need to
adopt successful e-business strategies that maximize the opportunities
presented and simultaneously minimize the challenges that come with it. Hence,
it is important to understand the current benefits, barriers, challenges faced,
and status of hotels that have adopted e-business in Ghana.
1.2 Statement of Problem
The proliferation of the internet
has not only provided an opportunity for Hotels to do business electronically
but also to be more competitive and get a global exposure and access to cross
border markets. Generally, the evolution of e-business and globalization has created a wider
global market and competition for all levels of businesses. E-business adoption
can be very beneficial to businesses once appropriate measures are put in place
prior to its implementation. Despite the growing number of studies on
E-business adoption in hotels, there is the need for advancing understanding of
the key factors experienced in different contexts around the world. In Ghana,
hotel businesses have recently adopted e-businesses with the aim to improve
their competitive advantage and increase their sales. However, the few existing
literature show that the adoption of e-business (in most part for electronic
mail and advertising) have not taking full advantage of e-business technologies
when compared to large businesses both locally and foreign (Fillis et al. 2004;
Peet et al. 2002; Quayle 2002; Grandon and Pearson 2004). More so, the rapid
changing environment, technological advancements and consumer taste and
preferences present dynamic challenges to a sustainable e-business. In order to
be competitive, hotels in Ghana should ensure e-business aligns with their
organizational goals and in turn create positive outcomes for them. Having a
well-developed strategy that includes flexibility and adaptability for
launching, maintaining, and updating can be crucial.
E-business adoption among hotels is
one of the areas that have been less explored. Understanding how hotels have
previously benefited from e-business adoption and its implementation will build
up literature in this area of study as well as provide informed lessons to
e-business implementation in Ghana. This research therefore assesses the level
of e-business adoption in some selected hotels in Ghana so as to identify the
factors impeding the adoption and the benefits that the early adopters have
gained.
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