The study evaluates the perceived benefits of electronic business adoption in the Zimbabwean service sector, revealing that it enhances organizational profitability, productivity, and communication. It suggests that for sustainable growth, a favorable institutional environment is necessary to support online trading systems. The research highlights that despite the advantages, some organizations are hesitant to adopt electronic business due to perceived risks such as cyber fraud.

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AN EVALUATION OF THE PERCEIVED BENEFITS OF
ELECTRONIC BUSINESS ADOPTION IN THE
ZIMBABWEAN SERVICE SECTOR
Dzindikwa Eliot
Faculty of Commerce, Zimbabwe Open University Harare, Zimbabwe.
ABSTRACT
The study evaluated the perceived benefits of electronic business adoption in the Zimbabwean service sector
in Harare. A qualitative case study was adopted. The interview technique was deployed as a data gathering
instrument. Purposive sampling was used to select 100 service sector companies registered on the Zimbabwe
Stock Exchange (SZE).The findings revealed that electronic business is a catalyst to organisational
profitability and productivity. The study also discovered that electronic business improves communication
and open economy at national and international level. The study recommended that in order for the
sustainable growth of electronic business to take place, the institutional environment requires to be in favour
of the online trading systems.
KEYWORDS
Electronic Business, Electronic Funds Transfer (EFT), Electronic Data Interchange (EDI), World Wide Web
(WWW).
1. INTRODUCTION
The Internet revolution has brought structural changes to the way the people do their business. In
the new economy the customers expectations are very different than before. The world traditional
boundaries were erased and redefined by the internet [1]. The new economy created new virtual
communities of traders with demands for new goods and services. With the new normal customers
can any product from anywhere by just the click of a button. The virtual space allows organisations
to conduct business using interactive tools such as Electronic Data Interchange (EDI), Electronic
Funds Transfer (EFT) and the World Wide Web platform.
It has been noted that with technological advances in the internet and web centered technologies,
the distinction between traditional marketplaces and global electronic marketplaces such as
business capital size, are gradually being narrowed [2]. The solution to this is strategic positioning,
the ability for a organisations to decide emerging opportunities and utilise fully the available and
important human capital expertise and use electronic business strategy that is simple, practical and
viable within the perspective of a worldwide information space and new economic environment
[3].
Electronic business coupled with solid strategy and policy methodology empowers small
organisations to compete with well-established and capital rich businesses at global level. This
amplifies the positive impact of virtual business that connects with the whole world. The history
of civilisation is, in large measure, a history of exploring and expanding networks that is from the
natural network of rivers that conveyed people and goods between ancient cities, to manmade
network railroads and river canals that criss-crossed continents in the nineteenth century, to the

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modern day communication networks that emerged around telegraphy, telephony and wireless
technologies[4].
Now the world is confronted with the vast network of networks, the Internet, which offers an
unprecedented level of connectivity that, is to connect to each other as people live, learn, work and
play. People may think the internet purely in terms of communication technology, but it is possible
to view it in much larger terms [5]. The internet is the backbone of electronic business, which is
now promoting industrial capitalism in the other parts of the globe.
2. STATEMENT OF THE PROBLEM
Research has shown that organisations embracing electronic business seem to be performing better
in terms of productivity and visibility among other variables. Electronic business provides benefits
related to reduction in operational costs [6]. Besides these recognised benefits some organisations
seem to be reluctant or are embracing electronic business slowly because of perceived risks such
as cyber fraud [7]. This study therefore seeks to investigate the benefits of electronic business to
the service sector in Zimbabwe.
3. OBJECTIVE
The study objective was to explore the benefits derived from electronic business adoption to the
service sector in Zimbabwe.
4. SIGNIFICANCE OF THE STUDY
This study is being conducted at a time electronic business has been welcomed by many as an
opportunity for developing economies to achieve a stronger footprint in the multi-lateral trading
system.
The study is going to contribute to knowledge development in the area of electronic business so
that other researchers can add onto the empirical data generated from this study.
This study is important in that policy makers, captains of the industry and managers in the service
sector may use the data to design systems and procedures that will enhance electronic business
processes in their organisations.
5. SCOPE OF THE STUDY
The study was on evaluation of the perceived benefits of electronic business using the Zimbabwean
service sector as a case study. The study used companies that are registered on the Zimbabwe Stock
Exchange only.
6. STUDY LIMITATIONS
The issue of information confidentiality was a threat to this study. This was aggravated by the fact
that most of the employees are bound by the company secrecy acts. As such it is very difficult for
them to release information to anyone. In order to mitigate this anomaly the researcher had to seek
legitimate permission through use of letters of consent addressed to organisational boards. The
letter had to highlight the research purpose and its benefits to the organisation.

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The inadequacy of electronic business knowledge and Information Communication Technology
(ICT) illiteracy among top management was another research obstacle. To meet gate the challenge,
the researcher had to first narrate the background and fundamental principles of electronic business
and its adoption matrix.
7. REVIEW OF LITERATURE
Much research has examined the issue concerning electronic business adoption in general but a
few have focused on the service sector. Electronic business and internet are highly associated with
advanced worlds and economies [8]. Electronic business is regarded a critical element of
organisation growth and profitability. The term is viewed as doing business electronically. As a
result of developments in the ICTs space, electronic business is now spreading rapidly in many in
many developing economies [9]. Electronic business is viewed as a chance for emerging economies
to penetrate and conquer the global market [10].
The importance of electronic business in today’s trading is supported by the fact provided by
Eurostat, indicating that in 2019, electronic business represented 18% of the total sales in the
European Union (EU) countries [11]. In addition it was found out that one out of five organisations
in the EU service sector used electronic business in 2017, while the percentage of organisations
that employed e-sales increased during the period from 2008 to 2018 [12]. As such electronic
business is a conduit for economic growth. Also the research by Statista indicates that the Chinese
electronic business was estimated to have expanded at an annual rate 22.5% for the period 2015 to
2020. This promoted China to be the world’s biggest digital market place generating US$1.8 trillion
in sales a year.
According to World Trade Organisation (WTO)(2020), the organisations that invest in electronic
business reduces transaction costs and promote global reach [13]. In the same sense the
International Telecommunication Union (ITU) (2019) reports that electronic business is a conduit
for organisational operational efficiency and effectiveness [14]. The ITU further revealed that 80%
of the countries in Europe use electronic business as a transactional tool and in Africa there is 7%
utilisation of electronic business. Therefore there is every reason to want to investigate why most
companies in Africa are still reluctant to invest in electronic business and further evaluate the
benefits obtained thereafter. This study therefore seeks to bridge the gap.
The research done by the Indian chamber of commerce in 2020 indicated that its members generate
70% of their revenue using electronic business [15]. In the same vein the chamber of commerce in
France found out that 92% of the members’ sales profits are a result of embracing electronic
business [16]. However this study was not done in the Southern African Development Country
(SADC) region.
Electronic business is supported by powerful systems such as EDI and EFT which facilitates the
movement or exchange of valued information between enterprises [17]. These systems promote
the use of electronic business as organisational new oil. Electronic business as a new innovation
promotes business efficiencies; enables a multitude of traders to converge for business anytime
anywhere [18] and encourage the creation of new global opportunities. The exponential rise in
mobile penetration and internet density in the developing economies is slowly facilitating
electronic business adoption. Resultantly virtual trading is promoting a new paradigm shift from
traditional trading to online trading [19]. Electronic business adoption by organisations improves
the market efficiencies of developing economies.
The UNCTD (2020) discovered that companies not using electronic business are losing revenue at
10% annual rate [20]. Therefore this study would like to evaluate the benefits of electronic business
adoption.

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Electronic business can not be adopted without its own challenges. It suffers from cyber fraud,
inefficient infrastructure and disabling environment. But if electronic business is adopted well, the
benefits outweigh the challenges in developing economies.
Based on the above inconclusive research findings, the study therefore would want to evaluate the
benefits of electronic business.
8. METHODOLOGY
The permission to conduct the study was sought from the relevant gate keepers. Anonymity and
confidentiality of data generated was assured to the participants. The participants preferred the use
of pseudo names. Thematic analysis was used to analyse the data. The study deployed the
qualitative approach. The sample size of 100 service sector companies registered on the Zimbabwe
Stock Exchange (ZSE) was used. Purposive sampling technique was used to select the participants.
In depth interviews were used to gather data.
9. DISCUSSION AND FINDINGS
The study sought to explore the benefits derived from electronic business adoption in the service
sector in Zimbabwe. The participants were of the view that organisations need to move with the
times and technology in order to promote global connectivity and networked economy. This can
be exemplified participant one who said “organisations should embrace the new technology such
as electronic business to reduce operational and transactional costs.” This was examined by [4]
who says organisations need to adopt electronic business as a new economic force to reduce costs
of doing business.
Another participant revealed that electronic business promotes global market reachability.
Organisational products can sell anywhere anytime in the world. This was revealed by [1] who says
virtual business knows no boundary.
Through data gathered, all participants highlighted that e-business promotes product information
availability and it is very efficient and effective for traders to compare product quality and prices.
This was supported by [6] who says electronic business is bedrock of product information rich.
The study indicated that electronic business adoption can make the business process faster since it
works 24/7/265 situation as long as the internet is functional. This was reiterated by [3] who
narrated that with e-business the company transactions are executed anytime anywhere.
The multitudes of the participants agreed that e-business adoption reduces costs of doing business
on condition that the regulatory environment is not punitive and the infrastructure is solid and
functional. The above sentiment was reiterated by [4] who said e-business reduces operational costs
but requires a well managed ICT infrastructure to ride on.
10. RECOMMENDATIONS
The study recommended that organisations in the service sector should conduct exhaustive
considerations of all the factors that positively drive the adoption of electronic business. The
service sector companies must have in place procedures and processes that enhance reduction in
operational and transaction costs. All the factors should be reflected in aggregate rather than in
isolation.

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It is further recommended that service sector companies, regulators and policy makers should
collaborate and coexist in the operations and policies to promote a fully-fledged electronic business
adoption scenario.
The organisations in the service sector must move with technological waves through adoption of
electronic business in order to increase revenue generation.
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