Business use of Internet-based information systems: the case of Korea

Abstract

The potential of the Internet to reach a large and growing body of customers, coupled with low communication costs, makes it a very attractive business medium to many organizations. Although there is significant interest in the use of the Internet for business purposes, studies articulating issues that can guide business managers in its use are lacking. The purpose of this study is to examine the issue of business activity on the Internet and report the results of a survey on the ways in which businesses are making use of Internet-based information systems (IIS). In addition, the study investigates the relations between the implementation and performance of an IIS to examine its potential to provide benefits to IIS adopters. A total of 120 usable responses were obtained. This paper identifies pertinent issues and problems that are critical in developing an IIS. The results also show that volume sophistication and information contents in an IIS partially affect the extent of cost savings, financial performance, and service improvement.

Keywords:

• internet-based information systems
• electronic commerce

Additional information

Notes on contributors

Sangjae Lee

About the authors

Sangjae Lee is a professor of management information systems at the department of business administration, Sejong University. He received Ph.D. in Management Information Systems from the Graduate School of Management, Korea Advanced Institute of Science and Technology. His research interests include electronic commerce, information systems control and audit.