BIBLIOGRAPHY BANTILES, JEMIMAH V....
BIBLIOGRAPHY
BANTILES, JEMIMAH V. APRIL 2013. E-business Readiness of Agri-
Based Businesses in La Trinidad, Benguet and Baguio City. Benguet State University, La
Trinidad, Benguet.
Adviser: Jovita M. Sim, MSc.
ABSTRACT
The study looked into the readiness of the respondents to adopt e-business.
Specifically, it identified the factors that measures the readiness of these agri-based
businesses in adopting electronic business; how these factors affects the readiness of the
business to adopt electronic agribusiness; reasons why respondents are planning or not
planning to adopt e-business; reasons why e-business is not fully adopted or not adopted
by these agri-based businesses; and the awareness of these agri-based businesses in e-
business.
The study consists of fifty randomly selected agri-based businesses from the two
municipalities. A structural survey questionnaire and personal interviews was used to
collect data and information. Percentage, ranking, frequency, and analytic method of
analysis were carried out as a tool.
Findings showed that the following factors were the measures of readiness of the
business to adopt e-business: availability and accessibility of equipment and internet tools
in e-business; production practices and usage of technology; supply of raw materials;
E-business Readiness of Agri-Based Businesses in La Trinidad, Benguet and Baguio City
BANTILES, JEMIMAH V. APRIL 2013
consumers awareness on e-business and internet tools; workers and owner knowledge on
e-business and Sufficiency of capital. Effects of these factors in each specific type of
enterprise vary to the situations and needs of the business as well as its workers and
consumers.
The reasons why respondents are planning to engage in e-business is because they
wanted to expand their business and cope-up with the new trends in technology. Those
respondents that are not planning to engage in e-business is because their income is just
enough for the family needs and their business is satisfied that consumers are buying
directly from their store.
The reasons why respondents were not ready to adopt e-business were because of
the following reasons: there were no available equipment in e-business; computer illiteracy
of owners and workers; insufficiency of capital; consumers were not aware of e-business
and internet tools; there is no technology used for faster production and the lack supply of
raw materials.
E-business Readiness of Agri-Based Businesses in La Trinidad, Benguet and Baguio City
BANTILES, JEMIMAH V. APRIL 2013
INTRODUCTION
Rationale
The growth of the internet has occurred at such a rapid pace that it now affects just
about every aspect of modern life. It makes sense then that the way people do business has
been forever altered by the internet and its many application. Except perhaps at a local
level, it is unlikely for a modern business to be successful by ignoring the World Wide
Web. As that is the case, most companies now devote a great deal of their focus in
conducting electronic business. Developments of IT and internet have also contributed to
the popularity of the current generation information technologies. Among the changes is
the need for closer coordination of supply chain (booth upstream and downstream) from
the producer and stretching from seed, fertilizer, and machinery suppliers, to food
processors and retailers. Developments in information technologies and competition have
forced new relationships between and among layers of agribusiness to form a complex web
interaction. The B2B, B2C and the C2C are used throughout the process to keep close
contact among companies, producers, purchasers, and consumers at a stage of interactive
e- agribusiness. IT provides a wide variety of information to farmers on commodity prices
and offers new technologies for improving farming activities. The use of IT in agriculture
has grown rapidly in the past few years. It is increasingly being used to help managers
make better decisions. Doing business electronically helps agribusiness to connect into a
wide range of consumers in just a single click. These supply of raw material to these
agricultural based business are made easy through electronic communications. Product
innovations don’t need a thorough researching because you can hire an expert through the
E-business Readiness of Agri-Based Businesses in La Trinidad, Benguet and Baguio City
BANTILES, JEMIMAH V. APRIL 2013
internet. Money exchanges have been made easy, agricultural based business continue to
explore the world of IT; agriculture has found its way for more improvements and
development through these information technologies available worldwide. Information
Technology (IT) has long been viewed as having great potential for improving decision
making in agriculture. IT has connected the world globally and is now changing our life
style and social consciousness dynamically. In all phases of the agricultural industry,
information technologies are vital to the management and success of a business.
Agriculture has also been greatly influenced by IT.
E-business Readiness of Agri-Based Businesses in La Trinidad, Benguet and Baguio City
BANTILES, JEMIMAH V. APRIL 2013
REVIEW OF LITERATURE
E-business
E-business or electronic business refers to the buying and selling of goods and
services performed electronically over the internet. The process can include business
selling to each other (B2B), business selling to consumers (B2C), even consumers selling
to consumers (C2C), or business selling to government (B2G). Most commonly, websites
are set up by business advertising their products and services allowing consumers to make
purchase night over internet. Technological advances on the internet have allowed
electronic business to reach such a high level that very few companies can compete without
someone sort of attempt to conduct e-business themselves (Wiley, M. 2003).
The most common implementation of e-business is an additional, or in some cases
primary storefront. By selling products and services online, an e-business is able to reach
a much wider consumer base than any traditional brick-and- mortar store could ever hope.
This function of e-business is referred to as ecommerce and the terms occasionally used
interchangeably. For consumers, e-business has been a valuable advance because it allows
them a great deal of convenience. Simply by having a computer with an internet
connection, an individual can conceivably do most of the major tasks associated with daily
life, like paying bills or buying necessary items or transferring money, with just a few
clicks on the computer mouse. Improved measures afforded by technological advances
allow ordinary people to do these things with a much greater sense of security than in the
past (www.wisegeek.com/what-is-ebusiness.htm.).
E-business Readiness of Agri-Based Businesses in La Trinidad, Benguet and Baguio City
BANTILES, JEMIMAH V. APRIL 2013
E-Agribusiness
Electronic agribusiness is simply e-business involving firms that are primarily in
the food and agriculture sector (Hooker et al., 2001). Technically it can be defined as any
form of business transaction which the parties interact electronically rather than by physical
changes or direct physical contact. Efficient communication is the key to successful
business. Internet is the fastest growing communication medium on earth at present. Doing
agribusiness online through internet is generally referred to as e-agribusiness. It is also
referred to as application of e-business in agribusiness. Basically it is information
technology based agribusiness (Barnwal, 2005).
Evolution of E-Agribusiness
The evolution of e-agribusiness sector is picking up slowly due to certain factors
such as rate of adoption of internet by producers as well as consumers as a business tool;
their scale of operations and the size of market. Evidence suggests that producers with
large-scale operations are migrating online. Another factor is the magnitude of the benefits
accruing to participants in e-business. Although it is probably too early to tell which model
will dominate, online companies have the potential to become vast hubs of economic
activity linking the supply chain within a vertical industry segment and connecting with
horizontal supply chains operating across industries. In the process, some of the third party
e-agribusiness sites are likely to fail because of strategic and operational constraints,
inefficiently in operations or shortage of capital. E-business is not just business but more
about strategy and technology. The current dot coms could be replaced by business that
have integrated the internet into their strategy and achieve real financial returns. It does
E-business Readiness of Agri-Based Businesses in La Trinidad, Benguet and Baguio City
BANTILES, JEMIMAH V. APRIL 2013
certainly appear that the foundations “bricks” or traditional business of agriculture are
beginning to view ecommerce as a business imperative. The traditional business companies
have string market share positions as incumbents and some are determined to fight to retain
their customers. After a slow start in the e-business arena, that has been a flood of
announcements from traditional agriculture companies regarding the creation of B2B
strategy. Some companies with significant market share buyers are establishing
procurement sites. Live as buyers are also establishing procurement sites (Kumar, A. &
Kumar, S., 2005).
The Key Features of E-business
Seamless integration with accounting. E-business provides for seamless integration
with accounting through available information and technological resources. Information
on products, pricing and customer data can be extracted from accounting directly to avoid
wasting time, errors and data replication. Changes to pricing, products, and customer
information get automatically updated. Orders can be downloaded directly to accounting
for processing in record time. Customer statements can upload for online account research.
All accounting practices are integrated into one single system for convenient access.
Effective product display and information. With an e-business, it is possible to
describe numerous products in great detail because text is unlimited. Images of the products
can be uploaded to add visual presentation of merchandise. Products can be sorted and
categorized for easy access by customers. Customer online shopping behavior is versatile
and the effective display of products, and the wealth of information provided, including
layout of the site can trigger the impulse-buying urge in customers.
E-business Readiness of Agri-Based Businesses in La Trinidad, Benguet and Baguio City
BANTILES, JEMIMAH V. APRIL 2013
Business to customer. Customers can logon and view products, get information on
new products, discount offers and special offers. Customers can also view their statements
online and check the source transactions. In an e-business set-up, it is possible to offer one
set of prices to regular customers and another set of prices to new customers. Payment
options can be varied to accept different currencies and payment gateways such as credit
cards, debit cards, and PayPal. Customers can receive online quotations to confirm their
orders.
Personalization. Companies engaged in e-business identify personalization as a key
feature of e-business. Personalization is wide ranging and covers display of products and
information, product recommendations and reviews, user-driver customization of products
and end-users’s personal data on a webpage. On the technological side, personalization
covers the use of dynamic page generation, cookies, information, filtering and user
profiling. The personalization feature can be used to enable sustainability through the
development of personalized user interfaces and processes (Devon, 2002).
E-business Readiness of Agri-Based Businesses in La Trinidad, Benguet and Baguio City
BANTILES, JEMIMAH V. APRIL 2013
METHODOLOGY
Locale and Time of Study
The study was conducted at La Trinidad, Benguet and Baguio City from December
2012 to January 2013.
Respondents of the Study
There were 50 respondents that were randomly chosen from agribusinesses in La
Trinidad, Benguet and Baguio City.
Data Gathering Procedure
Personal interview and questionnaires was used as a tool in collecting data for the
study. Respondents were asked to answer the questions related to the study.
Data Gathered
Data gathered were the awareness of respondents in e-business, factors that
measures the readiness of the business to adopt e-business, how these factors affect the
readiness of a business to adopt e-business; the reasons in planning to engage or not engage
in e-business in the future and the reason why e-business is not adopted.
Data Analysis
The data were tabulated and analyzed using statistical tools such as percentage and
frequency.
E-business Readiness of Agri-Based Businesses in La Trinidad, Benguet and Baguio City
BANTILES, JEMIMAH V. APRIL 2013
RESULTS AND DISCUSSION
General Profile of the Respondents
The respondents composed of 5 fruit based processing; 2 vegetable based
processing; 7 vegetable production and/or marketing; 8 fruit production and/or marketing;
4 root crop based processing; 3 fermentation; 2 coffee processing; 6 flower marketing; 3
marketing of farm inputs; 3 grain marketing; 4 baking; 3 livestock in Baguio City and La
Trinidad, Benguet. There were 25 respondents from Baguio City and 25 respondents from
La Trinidad, Benguet a total of 50 respondents.
Awareness on E-business
Awareness means the condition in where respondents are informed or has
knowledge of something. Table 1 reveals that 6% under production of vegetable; (2%)
production of fruit; 10% marketing of cut flower; 6% marketing of fertilizer; 4% marketing
of grains; 2% marketing of vegetable; 4% under marketing of fruits; 10% fruit-based
processors; 4% vegetable-based processors; 6% root crop-based processors; 4% coffee-
based processors; 6% fermentation; 8% baking and 6% under livestock were aware of e-
business. Two percent under production of vegetable; 6% production of fruit; 2% cut
flower marketing; 2% grain marketing; 6% vegetable marketing; 2% fruit marketing and
2% root crop-based processing were not aware of e-business. Table 1 implies that all of the
respondents under marketing of fertilizers, fruit-based processing, vegetable-based
processing, coffee-based processing, fermentation, baking and livestock were aware of e-
business and has the possibility to adopt e-business in the future. Majority of the
E-business Readiness of Agri-Based Businesses in La Trinidad, Benguet and Baguio City
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respondents under vegetable production, cut flower marketing, grain marketing, fruit
marketing and root crop-based processing were aware of e-business while majority of the
respondents under marketing of vegetable and production of fruit were not aware of e-
business.
Awareness on Internet Tools
Table 2 was based from the 39 respondents who were aware of e-business (Table
1). Six percent of the respondents under production of vegetable; 4% production of fruit;
4% cutflower marketing; 8% vegetable marketing; 4% fruit marketing; 2% fruit-based
processing; 4% vegetable-based processing; 2% root crop-based processing and 2% under
coffee-based processing were aware of facebook as an internet tool. Two percent under
baking were aware of tweeter while 2% under production of vegetable; 6% marketing of
fertilizer; 4% root crop-based processing and 4% coffee-based processing were aware of
e-mail as an internet tool. Two percent under production of vegetable; 2% fruit production;
4% cut flower marketing; 6% percent fertilizer marketing; 4% grain marketing; 4% fruit
marketing; 6% fruit-based processing; 4% root crop-based processing; 4% coffee-based
processing; 6% fermentation; 6% baking and 6% under livestock were aware of website as
an internet tool. 2% under root crop-based processing were aware of multiply as an internet
tool. Table 2 implies that business under root crop and coffee based processing were more
knowledgeable on using internet tools as compared to other businesses because they were
aware of more than two internet tools. Specifically, facebook, e-mail and website. Majority
(74%) of the respondents were aware of Website as an internet tool in e-business. Results
proved what Bovee and Thrill (2000) said that the website is one of the most widely used
E-business Readiness of Agri-Based Businesses in La Trinidad, Benguet and Baguio City
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part of the internet and respondents were aware of it. Fifty three percent of the respondents
were aware of facebook as an internet tool. Myers (2012) mentioned that facebook is the
largest networking sites that the respondents are also aware of. On the other hand, Rouse
(2005) claimed that blogs are the easiest way to publish brilliant thoughts, however in the
result the respondents were not aware of blog as seen in Table 2 that none of the
respondents were aware of blog as an internet tool.
Factors that Measures the Readiness of the
Respondents to Adopt E-business
The factors that measures readiness are the circumstances or conditions that brings
about the results of being ready to adopt e-business. Table 3 shows that 10% of the
respondents under production; 28% under marketing; 18% under processing and 4% under
fermentation mentioned that the availability and accessibility of equipments (laptops,
computer units and printers) and internet tools are the factors that measures their readiness
in adopting e-business. Fifty percent of the respondents under production and 50% under
processing mentioned that the factor that measures their readiness in adopting e-business
is their production practices (manual or mechanized) and the usage of technology in
production. There were 8% of the respondents under production; 10% under marketing and
6% under livestock and bakery who mentioned that one of the factors that measures their
readiness in adopting e-business is the consumers awareness on e-business and internet
tools as well (facebook, e-mail, tweeter, website, blog, and multiply). Also, 10% of the
respondents under production; 16% under marketing; 18% under processing; 4% under
fermentation and 6% under livestock mentioned that the workers and owners knowledge
on e-business is a measure of readiness of a certain business to adopt e-business. Lastly,
E-business Readiness of Agri-Based Businesses in La Trinidad, Benguet and Baguio City
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6% of the respondents under production; 20% under marketing; 16% under processing and
4% under livestock mentioned that the sufficiency of capital is a factor that measures the
readiness of a business to adopt e-business. Thus, factors that measure readiness of
businesses to adopt e-business were: availability and accessibility of equipment and
internet tools in e-business; production practices and usage of technology; supply of raw
materials; consumers awareness on e-business and internet tools; workers and owners
knowledge on e-business and sufficiency of capital.
Effects of Factors that Measures the Readiness
of a Business to adopt E-business
Availability and accessibility of equipment and internet tools in e-business. Out of
the 30 respondents who mentioned the availability and accessibility of equipment and
internet tools in e-business as a measure of readiness in adopting e-business, 83%
mentioned that when there are available equipments then the business can have access to
internet tools. On the other hand, 17% mentioned that when the equipments condition is
out-modeled and slow to work, then the business needs to upgrades its equipments or buy
a new one. The results implies that the business is not ready to adopt e-business when there
are no available equipments to be used to set-up an e-business and when equipments
present is out-modeled or slow to work.
Production practices and usage of technology. The results is based from the 16
respondents who mentioned that production practices and usage of technology is a measure
of e-business readiness. Thirty eight percent mentioned that manual labor can delay bulk
orders online; (44%) mentioned that production cannot be increased easily when there is
no such technology used to reach a wider consumer coverage online, and (19%) of the
E-business Readiness of Agri-Based Businesses in La Trinidad, Benguet and Baguio City
BANTILES, JEMIMAH V. APRIL 2013
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respondents mentioned that manual labor can cause business to miss opportunities like
increase in demand. Thus, results implies that the business is not ready to adopt e-business
when production is purely manual and there is no technology used to be able to increase
production easily in order to reach a wider coverage of online consumers.
Supply of raw materials. Out of the 13 respondents who mentioned that the supply
of raw materials as a measure to e-business readiness, all of the respondents mentioned that
production is not enough to meet online demand when there is lack of supply of raw
materials. Thus, the business is not yet ready to adopt e-business if there is limited of supply
of raw materials in producing the product unless the business can outsource to other
suppliers of raw material or the business can also choose another alternative raw material
producing another variety to secure continuous supply of products in the market.
Consumers awareness on e-business and internet tools. Out of the 12 respondents
who mentioned that the consumers awareness on e-business and internet tools, all of them
mentioned that when consumers are not aware of internet tools then they will not be able
to order online and might prefer to buy directly to the physical store. Such occurrence
indicates that the business is not ready to adopt e-business when consumers or customers
are not aware of e-business and internet tools. Consumers play a great role on the readiness
of the business to adopt e-business. What consumers wants and knows best is what the
business do and when consumers are not aware of e-business and does not even know to
use internet tools (e-mail, facebook and website) then the business is not e-business ready
until the consumers themselves would like to learn and adopt e-business.
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Workers and owners knowledge in e-business. Thirty three percent out of 27
respondents that mentioned the above factor as one of the measures in e-business readiness
E-business Readiness of Agri-Based Businesses in La Trinidad, Benguet and Baguio City
BANTILES, JEMIMAH V. APRIL 2013
and adoption mentioned that the effect of the above factor is when workers are not aware
of e-business then the business cannot set-up its own e-business unless it hires new
worker(s) to do e-business for the business. Also, (44%) of the respondents mentioned that
if owner is knowledgeable on e-business, he can train its own workers on e-business or
vice versa, making their workers ready if business will adopt, and (23%) of the respondents
mentioned that If workers has only finished elementary grade or never entered into school,
it is harder for the owner to train its workers e-business unless the owner will hire college
students or high school graduate without problems in speaking English so that he could
train them easily. Results in table 4 reveals that there is a great effect of the knowledge of
workers and owner in e-business because if owners and workers possesses knowledge in
e-business then it would be easier to adopt e-business with no need to hire IT graduates to
set-up a business electronically.
Sufficiency of capital. Table 4 shows the effects of the sufficiency of capital to the
readiness of the business to adopt e-business based from the 23 respondents from Table 3
who mentioned sufficiency of capital as a factor in measuring e-business readiness.
Majority (57%) of the respondents mentioned that when the business experience financial
problems then the business does not have the capacity to sustain e-business most specially
in spending for e-marketing and hiring professional people to do e-business for the
business; (30%) of the respondents mentioned that when there is shortage in capital then
the business will not be able to purchase or maintain e-business equipments and delivery
cars and (13%) of the respondents mentioned that when the business lacks capital, then
the business cannot increase stocks of raw materials and cannot increase production easily
to reach a wider number of consumers in an online store. Implications are the business is
E-business Readiness of Agri-Based Businesses in La Trinidad, Benguet and Baguio City
BANTILES, JEMIMAH V. APRIL 2013
37
not e-ready if it cannot pay the high cost accompanied by e-business. With just mouse
clicks a business can make its own website without that high cost but there are a lot of
hidden costs in e-business like hiring of skilled workers in e-business, high delivery and
electricity costs, maintenance cost of delivery cars and equipments in e-business in which
the business may not be able to shoulder these costs most especially in a small scale
business.
Reasons Why Respondents are Planning or
Not Planning to Engage in E-business
Plan to engage in e-business. Majority (68%) of the respondents in Table 5 were
planning to engage in e-business in the future, while 32% were not planning to enter into
e-business. Results shows that there is a possibility that e-business will be adopted in the
near future in Baguio City and La Trinidad, Benguet. Twenty percent of the respondents
under those who were not planning to engage in e-business came from the businesses under
marketing while 24% of the respondents were planning to engage in e-business came from
those businesses under processing. Implications were businesses who are not planning to
engage in e-business in the future would have the least chance of adopting e-business since
they were not planning to engage in e-business while those businesses who were planning
to engage in e-business were the ones who has the possibility to enter and have its products
positioned online in the near future.
Reasons in engaging and not engaging in e-business. Table 6 is based from the 34
respondents who were planning to enter into and e-business in the future and 16
respondents who were not planning to enter into e-business in the future as shown in Table
5. Thirty five percent of the respondents who were planning to engage in e-business
mentioned that they wanted to cope up with the new trends in technology while 65% of the
E-business Readiness of Agri-Based Businesses in La Trinidad, Benguet and Baguio City
BANTILES, JEMIMAH V. APRIL 2013
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respondents who were planning to engage in e-business in the future mentioned that they
wanted to expand their business. On the other hand, majority (75%) of the respondents who
were not planning to engage in e-business mentioned that their income is just enough for
family needs while 24 % of the respondents who were not planning to engage in e-business
mentioned that they were satisfied that consumers were buying from their store. Results
show that there were still businesses who were not willing to adopt the new trends in
technology and rather choose the traditional brick-and-mortar. There were respondents
who wanted to expand business while there were those who were just satisfied on the
condition of their business and does not want to take risks in entering into e-business.
Reasons Why e-business is not Adopted by Respondents
Readiness to adopt e-business. Table 7 shows that (4%) of the respondents under
production; (6%) under marketing; (12%) under processing and (6%) under baking
confidently says that they are e-business ready while (12%) of the respondents under
production; (32%) under marketing; (14%) under processing; (6%) under fermentation and
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livestock and (2%) under bakery admit that they were not ready to adopt e-business.
Reasons why respondents are not ready to adopt e-business. Enterprises under
production of fruit and vegetable mentioned the following reasons on why they are not
ready to adopt e-business: majority (88%) mentioned the computer illiteracy of owner and
workers; 63% mentioned there were no available equipment in e-business; 75% mentioned
consumers were not aware of e-business and internet tools; 63% there was no technology
used for faster production and 50% mentioned insufficiency of capital. Results imply that
business under production of vegetables and fruits were not ready to adopt e-business
E-business Readiness of Agri-Based Businesses in La Trinidad, Benguet and Baguio City
BANTILES, JEMIMAH V. APRIL 2013
because of the following reasons: there were no available equipments in e-business;
workers and owner were illiterate in handling computer; insufficiency of capital;
consumers were not aware of e-business and internet tools and there is no technology used
for faster production. Enterprises under marketing of cut flowers, grains, fertilizer,
vegetable and fruit mentioned the following reasons on why they were not ready to adopt
e-business: majority (79%) mentioned the insufficiency of capital; 68% consumers were
not aware of e-business and internet tools; 53% computer illiteracy of owner and workers
and 42% there is no equipment available equipment in e-business. Results in Table 8
implies that businesses under marketing were not ready to adopt e-business because there
is no available equipment in e-business; owner and workers are illiterate in handling
computer; insufficiency of capital and consumers were not aware of e-business and internet
tools. Enterprises under processing mentioned the following reasons why they were not
ready to adopt e-business: all respondents mentioned there was no technology used for
faster production; majority (69%) mentioned insufficiency of capital; 54% computer
illiteracy of owner and workers; 54% there were no available equipment in e-business and
54% limited supply of raw materials. Thus, businesses under marketing were not ready to
adopt e-business because of the following reasons: lack of supply of raw materials; there
is no technology used for faster production; insufficiency of capital; computer illiteracy of
owner and workers and there is no equipments available in e-business. Enterprises under
fermentation mentioned the following as their reasons on why they were not ready to adopt
e-business: all respondents mentioned limited supply of raw materials; majority (67%)
insufficiency of capital and 67% computer illiteracy of owner and workers. Implications
were business under fermentation were not ready to adopt e-business because of the
E-business Readiness of Agri-Based Businesses in La Trinidad, Benguet and Baguio City
BANTILES, JEMIMAH V. APRIL 2013
following reasons: computer illiteracy of owner and workers, insufficiency of capital and
limited supply of raw materials. Enterprises under livestock mentioned the following
reasons on why they were not ready to adopt e-business: all respondents mentioned the
computer illiteracy of workers and owners and consumers were not aware of e-business
and internet tools. Thus, businesses under livestock were not e-business ready because their
consumers were not aware of e-business and internet tools and the computer illiteracy of
owner and workers. Bakeries are-not ready to adopt e-business because of one reason as
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shown in Table 8 that all of the respondents under baking mentioned that consumers were
not aware of e-business and internet tools. Overall, result implies that there were a lot of
factors that affects the readiness of a business to adopt e-business and that could not be
settled for just one factor to be able to measure the readiness of a business to adopt e-
business.
E-business Readiness of Agri-Based Businesses in La Trinidad, Benguet and Baguio City
BANTILES, JEMIMAH V. APRIL 2013
SUMMARY, CONCLUSIONS, RECOMMENDATIONS
Summary
This research was conducted to determine the readiness of agri-based business in
Baguio City and La Trinidad, Benguet in adopting e-business.
Respondents were fifty agri-based businesses. Data was collected with the use of
survey questionnaire and personal interviews. The respondents are categorized according
to product commodity. Descriptive analysis using percentage and frequency counts was
used primarily to describe the data.
Among the 50 respondent in Baguio City and La Trinidad, Benguet, 5 were under
fruit based processing; 2 were under vegetable based processing; 7 were under production
and/or marketing of vegetables; 8 production and/or marketing of fruits; 4 root crop based
marketing; 3 marketing of farm inputs; 3 grain marketing; 4 baking and 3 under livestock.
The accessibility of equipments and internet tools in e-business affects the business
readiness to adopt e-business in terms of how the business can start its online store if there
are available equipments as well as the equipments condition and its accessibility to
internet tools to be able to connect its online store to its consumers.
Production practices and usage of technology affects the readiness of the business
to adopt e-business in the part of a faster production level to meet bulk orders online the
ease of increasing production through machines to meet online demand and the
opportunities that the business can supply its products to a wider coverage of consumers
online when production there is a technology used to meet consumers needs.
E-business Readiness of Agri-Based Businesses in La Trinidad, Benguet and Baguio City
BANTILES, JEMIMAH V. APRIL 2013
The business is not ready to adopt e-business when it cannot produce its products
continuously due to lack of supply of raw materials. Production is not secured to supply
consumers needs online because the raw materials are not produced year round.
The business readiness to adopt e-business is greatly affected by the consumer’s
awareness on e-business and internet tools. When consumers are not aware of e-business
and internet tools, there will be no one to patronize the businesses online store. Consumers
cannot order online and will cause the business to stay in a physical store when they don’t
know how to use such internet tools like e-mail, website and facebook.
The knowledge of the owner on e-business can be an opportunity for the workers
to learn e-business and apply it on the business. The owner has to choose workers that are
at least has finished high school and college without problems on speaking and reading
English so that the succession of learning e-business would be that easy for the owner to
do. When workers are not really knowledgeable on e-business, then the business cannot
adopt e-business unless hiring of new skilled workers in e-business would take into place.
The insufficiency of capital is an indicator that the business is not suited to set-up
an e-business. It’s true that in just a single click a business can make its own online store
on certain sites but there are other cost accompanied by e-business that the business cannot
shoulder when there is insufficiency of capital. E-businesses spend on maintaining
equipments used in e-business, the business has to spend on e-marketing to advertise its
own sites, the business has to hire professional people to do the system and design of their
own e-business, maintenance of delivery cars can cost much as well as the delivery cost of
product, continuous product innovation and product developments should take place to
meet the demands on consumers in an online store, the business must spend on machines
E-business Readiness of Agri-Based Businesses in La Trinidad, Benguet and Baguio City
BANTILES, JEMIMAH V. APRIL 2013
for faster production and the increase in stocks of raw materials also cost that much.
Without money in the business, it can never fulfill what the consumers demand in an online
store. Thus, the readiness of the business to adopt e-business is greatly affected by the
sufficiency of capital.
Majority of the respondents who are planning to engage in e-business in the future
came from the type of enterprises under marketing and processing. Majority of the
respondents who are planning to engage in e-business reasoned that they wanted to expand
their business. Majority of the respondents who are not engaging into e-business reasoned
that their income is just enough for family needs.
Majority of the respondents are not e-business ready. The reasons why e-business
is not being adopted or fully adopted by respondents is because of insufficiency of capital;
there are no available equipments in e-business; computer illiteracy of owners and workers;
consumers were not aware of e-business and does not even know how to use internet tools;
lack of supply of raw materials and there are no technology used for a faster production.
Conclusions
The following conclusions were drawn based on the findings:
1. Majority of the respondents were aware of electronic business. The respondents
have never encounter or tried using blog as an internet tool. They do not now that blog is
the easiest way in which products can be advertised or sold and in which a lot of people
are surfing into;
2. The factors that affects the readiness of the respondents to adopt e-business were
the following: availability and accessibility of equipment and internet tools in e-business;
E-business Readiness of Agri-Based Businesses in La Trinidad, Benguet and Baguio City
BANTILES, JEMIMAH V. APRIL 2013
production practices and technology usage of technology; lack of supply of raw material;
consumers awareness on e-business and internet tools; workers and owner knowledge on
e-business and sufficiency of capital;
3. Type of enterprises under production has the following constraints that lead them
not ready to adopt e-business: no available equipments in e-business; there is no technology
used for a faster production; consumers were not aware of e-business and internet tool;
owners and works were computer illiterate and the insufficiency of capital. Those
enterprises under marketing has the following constraints leading them not ready to adopt
e-business: no available equipments in e-business; consumers were not aware of e-business
and internet tool; owners and works were computer illiterate and the insufficiency of
capital. Enterprises under processing faced obstacles like no available equipments in e-
business; there is no technology used for a faster production; lack of supply of raw
materials; owners and works were computer illiterate and the insufficiency of capital as
constraints that prove that they are not e-business ready. Those under fermentation
experienced the situations like computer illiteracy of owners and workers; insufficiency of
capital and the lack of supply of raw materials that leads them not ready to adopt e-business.
Businesses under livestock were not e-ready due to the reasons that the owners and workers
were computer illiterate and their consumers were not aware of e-business and internet
tools as well. Bakeries experience only one reason why their business is not adopting e-
business it is because the consumers of their products were not aware of e-business and
internet tools that results them to stay in a brick-and-mortar store;
4. Respondents do not really know the opportunities in e-business. All they know
is they can only expand the business and cope-up with the new trends in technology not
E-business Readiness of Agri-Based Businesses in La Trinidad, Benguet and Baguio City
BANTILES, JEMIMAH V. APRIL 2013
knowing that they can have the opportunities like to explore new markets outlets online;
negotiations to other suppliers can be done; business can develop its product so that it can
compete globally; business can connect to possible consumers abroad and in other parts of
the country; business will have a readily available information on new trends to consumer
tastes and preferences; comments and suggestions of consumers can be expressed freely
and others. Respondents thought that there is no need for an online store because they think
they can always keep their consumers buying in their physical store not looking for
convenience that e-business could provide. Also the respondents were not aware that the
age of information technology is starting its way to be adopted in many businesses and
those who will not be adopting will be left behind leading them the need to learn how e-
business is done in order to maintain business and satisfy the needs of the family; and,
5. Majority of the respondents experienced the lack of financial support to be able
to maintain the high cost of e-business like high delivery and electricity cost; hiring of
skilled e-business workers; maintenance of e-business equipments and delivery cars and
high e-marketing costs. Illiteracy in computer handling hampers the respondents to
understand the benefits of e-business to their business. The suppliers of the respondents on
their raw materials cannot produce enough thus; the respondents cannot adopt e-business
when there is lack of raw materials supplied by the respondents.
Recommendations
For e-business to be fully adopted by these agri-based businesses, there is a need
for these businesses to upgrade their knowledge and skills on information technology.
Businesses should focus on developing their products content, packaging, and details ready
for online positioning. Owners can create groups with the objectives of making programs
E-business Readiness of Agri-Based Businesses in La Trinidad, Benguet and Baguio City
BANTILES, JEMIMAH V. APRIL 2013
through government connections like seminars, workshops and trainings on e-business and
how to use the internet tools for agri-based owners and workers. Also, there could also be
language enhancement trainings to increase the effectiveness of workers most especially
for foreign clients there would be no occurrence of language barriers. Owners can seek
help from professionals to do the work for them like web designing, system designs, online
advertisements and others. Businesses should also improve the location where production
takes place and acquisition of machineries can be done to upgrade production level.
Owners should set standards on workers that are to be hired for the maximum benefit of
the business.
E-business Readiness of Agri-Based Businesses in La Trinidad, Benguet and Baguio City
BANTILES, JEMIMAH V. APRIL 2013
LITERATURE CITED
BOVEE, C. and J. THRILL, 2000. “Business communication today”. Upper Saddle, N.J.
Prentice hall. Pp. 339-343
BARNWAL, A, 2005. “E-agribusiness”. Retrieved July 2, 2012 from www.slideshare.net/
ashishbarnwal/e-agri-business.
DEVON, W., 2000. “Key Features of E-business”. Retrieved October 25, 2012 from
www.eHow.com.
DURAN, I., 2003. “Payment options for E-businesses”. Retrieved October 25, 2012 from
www.optimum7.com/internet-marketing/online-payment-methods/ecommerce-
payment-methods.html.
HOOKER N., J. HEILIG, J. ERNEST. “Development of Agricultural, Environment, and
Development Economics”. Retrieved July 2, 2012 from www.agrieconomics.com.
IYER, A., 2006. “Disadvantages and Advantages of electronic business”. Retrieved July
9, 2012 from www.buzzle.com/articles/advabtages-and-disadvantages-of-e-
business.html.
JOHNSON, S., 2000. “Traditional Business vs. E- business”. Retrieved July 9, 2012 from
www.eHow.com.
KUMAR, A. and S. KUMAR, 2005. “Evolution of E-Agribusiness”. Retrieved July 10,
2012 from www.manage.gov.
MYERS, J., 2012. “What is Facebook?”. Retrieved August 10, 2012 from
www.wisegeek.com/what-is-facebook.html.
NUSCA, A., 2005. “Understanding twitter basics”. Retrieved July 6, 2012 from
www.twitterbasics.com.
ROUSE, D., 2000. “What is blog”? Retrieved July 6, 2012 from www.problogger.net.
SCHON. D., 2011. “E-business Trends”. Retrieved August 3, 2012 from
www.electronicbusinesswordpress.com.
STAY, J., 2008. “ Ways Facebook can help your Business”. Retrieved August 3, 2012
from www.insidefacebook.com/2008/07/28/facebook-for-business-what-it-needs-
what-it-has.
WILEY, M, 2003. “What is electronic business”? Retrieved July 16, 2012 from
www.wisegeek.com/what-is-electronic-ebusiness.html.
E-business Readiness of Agri-Based Businesses in La Trinidad, Benguet and Baguio City
BANTILES, JEMIMAH V. APRIL 2013
BANTILES, JEMIMAH V. APRIL 2013. E-business Readiness of Agri-
Based Businesses in La Trinidad, Benguet and Baguio City. Benguet State University, La
Trinidad, Benguet.
Adviser: Jovita M. Sim, MSc.
ABSTRACT
The study looked into the readiness of the respondents to adopt e-business.
Specifically, it identified the factors that measures the readiness of these agri-based
businesses in adopting electronic business; how these factors affects the readiness of the
business to adopt electronic agribusiness; reasons why respondents are planning or not
planning to adopt e-business; reasons why e-business is not fully adopted or not adopted
by these agri-based businesses; and the awareness of these agri-based businesses in e-
business.
The study consists of fifty randomly selected agri-based businesses from the two
municipalities. A structural survey questionnaire and personal interviews was used to
collect data and information. Percentage, ranking, frequency, and analytic method of
analysis were carried out as a tool.
Findings showed that the following factors were the measures of readiness of the
business to adopt e-business: availability and accessibility of equipment and internet tools
in e-business; production practices and usage of technology; supply of raw materials;
E-business Readiness of Agri-Based Businesses in La Trinidad, Benguet and Baguio City
BANTILES, JEMIMAH V. APRIL 2013
consumers awareness on e-business and internet tools; workers and owner knowledge on
e-business and Sufficiency of capital. Effects of these factors in each specific type of
enterprise vary to the situations and needs of the business as well as its workers and
consumers.
The reasons why respondents are planning to engage in e-business is because they
wanted to expand their business and cope-up with the new trends in technology. Those
respondents that are not planning to engage in e-business is because their income is just
enough for the family needs and their business is satisfied that consumers are buying
directly from their store.
The reasons why respondents were not ready to adopt e-business were because of
the following reasons: there were no available equipment in e-business; computer illiteracy
of owners and workers; insufficiency of capital; consumers were not aware of e-business
and internet tools; there is no technology used for faster production and the lack supply of
raw materials.
E-business Readiness of Agri-Based Businesses in La Trinidad, Benguet and Baguio City
BANTILES, JEMIMAH V. APRIL 2013
INTRODUCTION
Rationale
The growth of the internet has occurred at such a rapid pace that it now affects just
about every aspect of modern life. It makes sense then that the way people do business has
been forever altered by the internet and its many application. Except perhaps at a local
level, it is unlikely for a modern business to be successful by ignoring the World Wide
Web. As that is the case, most companies now devote a great deal of their focus in
conducting electronic business. Developments of IT and internet have also contributed to
the popularity of the current generation information technologies. Among the changes is
the need for closer coordination of supply chain (booth upstream and downstream) from
the producer and stretching from seed, fertilizer, and machinery suppliers, to food
processors and retailers. Developments in information technologies and competition have
forced new relationships between and among layers of agribusiness to form a complex web
interaction. The B2B, B2C and the C2C are used throughout the process to keep close
contact among companies, producers, purchasers, and consumers at a stage of interactive
e- agribusiness. IT provides a wide variety of information to farmers on commodity prices
and offers new technologies for improving farming activities. The use of IT in agriculture
has grown rapidly in the past few years. It is increasingly being used to help managers
make better decisions. Doing business electronically helps agribusiness to connect into a
wide range of consumers in just a single click. These supply of raw material to these
agricultural based business are made easy through electronic communications. Product
innovations don’t need a thorough researching because you can hire an expert through the
E-business Readiness of Agri-Based Businesses in La Trinidad, Benguet and Baguio City
BANTILES, JEMIMAH V. APRIL 2013
internet. Money exchanges have been made easy, agricultural based business continue to
explore the world of IT; agriculture has found its way for more improvements and
development through these information technologies available worldwide. Information
Technology (IT) has long been viewed as having great potential for improving decision
making in agriculture. IT has connected the world globally and is now changing our life
style and social consciousness dynamically. In all phases of the agricultural industry,
information technologies are vital to the management and success of a business.
Agriculture has also been greatly influenced by IT.
E-business Readiness of Agri-Based Businesses in La Trinidad, Benguet and Baguio City
BANTILES, JEMIMAH V. APRIL 2013
REVIEW OF LITERATURE
E-business
E-business or electronic business refers to the buying and selling of goods and
services performed electronically over the internet. The process can include business
selling to each other (B2B), business selling to consumers (B2C), even consumers selling
to consumers (C2C), or business selling to government (B2G). Most commonly, websites
are set up by business advertising their products and services allowing consumers to make
purchase night over internet. Technological advances on the internet have allowed
electronic business to reach such a high level that very few companies can compete without
someone sort of attempt to conduct e-business themselves (Wiley, M. 2003).
The most common implementation of e-business is an additional, or in some cases
primary storefront. By selling products and services online, an e-business is able to reach
a much wider consumer base than any traditional brick-and- mortar store could ever hope.
This function of e-business is referred to as ecommerce and the terms occasionally used
interchangeably. For consumers, e-business has been a valuable advance because it allows
them a great deal of convenience. Simply by having a computer with an internet
connection, an individual can conceivably do most of the major tasks associated with daily
life, like paying bills or buying necessary items or transferring money, with just a few
clicks on the computer mouse. Improved measures afforded by technological advances
allow ordinary people to do these things with a much greater sense of security than in the
past (www.wisegeek.com/what-is-ebusiness.htm.).
E-business Readiness of Agri-Based Businesses in La Trinidad, Benguet and Baguio City
BANTILES, JEMIMAH V. APRIL 2013
E-Agribusiness
Electronic agribusiness is simply e-business involving firms that are primarily in
the food and agriculture sector (Hooker et al., 2001). Technically it can be defined as any
form of business transaction which the parties interact electronically rather than by physical
changes or direct physical contact. Efficient communication is the key to successful
business. Internet is the fastest growing communication medium on earth at present. Doing
agribusiness online through internet is generally referred to as e-agribusiness. It is also
referred to as application of e-business in agribusiness. Basically it is information
technology based agribusiness (Barnwal, 2005).
Evolution of E-Agribusiness
The evolution of e-agribusiness sector is picking up slowly due to certain factors
such as rate of adoption of internet by producers as well as consumers as a business tool;
their scale of operations and the size of market. Evidence suggests that producers with
large-scale operations are migrating online. Another factor is the magnitude of the benefits
accruing to participants in e-business. Although it is probably too early to tell which model
will dominate, online companies have the potential to become vast hubs of economic
activity linking the supply chain within a vertical industry segment and connecting with
horizontal supply chains operating across industries. In the process, some of the third party
e-agribusiness sites are likely to fail because of strategic and operational constraints,
inefficiently in operations or shortage of capital. E-business is not just business but more
about strategy and technology. The current dot coms could be replaced by business that
have integrated the internet into their strategy and achieve real financial returns. It does
E-business Readiness of Agri-Based Businesses in La Trinidad, Benguet and Baguio City
BANTILES, JEMIMAH V. APRIL 2013
certainly appear that the foundations “bricks” or traditional business of agriculture are
beginning to view ecommerce as a business imperative. The traditional business companies
have string market share positions as incumbents and some are determined to fight to retain
their customers. After a slow start in the e-business arena, that has been a flood of
announcements from traditional agriculture companies regarding the creation of B2B
strategy. Some companies with significant market share buyers are establishing
procurement sites. Live as buyers are also establishing procurement sites (Kumar, A. &
Kumar, S., 2005).
The Key Features of E-business
Seamless integration with accounting. E-business provides for seamless integration
with accounting through available information and technological resources. Information
on products, pricing and customer data can be extracted from accounting directly to avoid
wasting time, errors and data replication. Changes to pricing, products, and customer
information get automatically updated. Orders can be downloaded directly to accounting
for processing in record time. Customer statements can upload for online account research.
All accounting practices are integrated into one single system for convenient access.
Effective product display and information. With an e-business, it is possible to
describe numerous products in great detail because text is unlimited. Images of the products
can be uploaded to add visual presentation of merchandise. Products can be sorted and
categorized for easy access by customers. Customer online shopping behavior is versatile
and the effective display of products, and the wealth of information provided, including
layout of the site can trigger the impulse-buying urge in customers.
E-business Readiness of Agri-Based Businesses in La Trinidad, Benguet and Baguio City
BANTILES, JEMIMAH V. APRIL 2013
Business to customer. Customers can logon and view products, get information on
new products, discount offers and special offers. Customers can also view their statements
online and check the source transactions. In an e-business set-up, it is possible to offer one
set of prices to regular customers and another set of prices to new customers. Payment
options can be varied to accept different currencies and payment gateways such as credit
cards, debit cards, and PayPal. Customers can receive online quotations to confirm their
orders.
Personalization. Companies engaged in e-business identify personalization as a key
feature of e-business. Personalization is wide ranging and covers display of products and
information, product recommendations and reviews, user-driver customization of products
and end-users’s personal data on a webpage. On the technological side, personalization
covers the use of dynamic page generation, cookies, information, filtering and user
profiling. The personalization feature can be used to enable sustainability through the
development of personalized user interfaces and processes (Devon, 2002).
E-business Readiness of Agri-Based Businesses in La Trinidad, Benguet and Baguio City
BANTILES, JEMIMAH V. APRIL 2013
METHODOLOGY
Locale and Time of Study
The study was conducted at La Trinidad, Benguet and Baguio City from December
2012 to January 2013.
Respondents of the Study
There were 50 respondents that were randomly chosen from agribusinesses in La
Trinidad, Benguet and Baguio City.
Data Gathering Procedure
Personal interview and questionnaires was used as a tool in collecting data for the
study. Respondents were asked to answer the questions related to the study.
Data Gathered
Data gathered were the awareness of respondents in e-business, factors that
measures the readiness of the business to adopt e-business, how these factors affect the
readiness of a business to adopt e-business; the reasons in planning to engage or not engage
in e-business in the future and the reason why e-business is not adopted.
Data Analysis
The data were tabulated and analyzed using statistical tools such as percentage and
frequency.
E-business Readiness of Agri-Based Businesses in La Trinidad, Benguet and Baguio City
BANTILES, JEMIMAH V. APRIL 2013
RESULTS AND DISCUSSION
General Profile of the Respondents
The respondents composed of 5 fruit based processing; 2 vegetable based
processing; 7 vegetable production and/or marketing; 8 fruit production and/or marketing;
4 root crop based processing; 3 fermentation; 2 coffee processing; 6 flower marketing; 3
marketing of farm inputs; 3 grain marketing; 4 baking; 3 livestock in Baguio City and La
Trinidad, Benguet. There were 25 respondents from Baguio City and 25 respondents from
La Trinidad, Benguet a total of 50 respondents.
Awareness on E-business
Awareness means the condition in where respondents are informed or has
knowledge of something. Table 1 reveals that 6% under production of vegetable; (2%)
production of fruit; 10% marketing of cut flower; 6% marketing of fertilizer; 4% marketing
of grains; 2% marketing of vegetable; 4% under marketing of fruits; 10% fruit-based
processors; 4% vegetable-based processors; 6% root crop-based processors; 4% coffee-
based processors; 6% fermentation; 8% baking and 6% under livestock were aware of e-
business. Two percent under production of vegetable; 6% production of fruit; 2% cut
flower marketing; 2% grain marketing; 6% vegetable marketing; 2% fruit marketing and
2% root crop-based processing were not aware of e-business. Table 1 implies that all of the
respondents under marketing of fertilizers, fruit-based processing, vegetable-based
processing, coffee-based processing, fermentation, baking and livestock were aware of e-
business and has the possibility to adopt e-business in the future. Majority of the
E-business Readiness of Agri-Based Businesses in La Trinidad, Benguet and Baguio City
BANTILES, JEMIMAH V. APRIL 2013
23
respondents under vegetable production, cut flower marketing, grain marketing, fruit
marketing and root crop-based processing were aware of e-business while majority of the
respondents under marketing of vegetable and production of fruit were not aware of e-
business.
Awareness on Internet Tools
Table 2 was based from the 39 respondents who were aware of e-business (Table
1). Six percent of the respondents under production of vegetable; 4% production of fruit;
4% cutflower marketing; 8% vegetable marketing; 4% fruit marketing; 2% fruit-based
processing; 4% vegetable-based processing; 2% root crop-based processing and 2% under
coffee-based processing were aware of facebook as an internet tool. Two percent under
baking were aware of tweeter while 2% under production of vegetable; 6% marketing of
fertilizer; 4% root crop-based processing and 4% coffee-based processing were aware of
e-mail as an internet tool. Two percent under production of vegetable; 2% fruit production;
4% cut flower marketing; 6% percent fertilizer marketing; 4% grain marketing; 4% fruit
marketing; 6% fruit-based processing; 4% root crop-based processing; 4% coffee-based
processing; 6% fermentation; 6% baking and 6% under livestock were aware of website as
an internet tool. 2% under root crop-based processing were aware of multiply as an internet
tool. Table 2 implies that business under root crop and coffee based processing were more
knowledgeable on using internet tools as compared to other businesses because they were
aware of more than two internet tools. Specifically, facebook, e-mail and website. Majority
(74%) of the respondents were aware of Website as an internet tool in e-business. Results
proved what Bovee and Thrill (2000) said that the website is one of the most widely used
E-business Readiness of Agri-Based Businesses in La Trinidad, Benguet and Baguio City
BANTILES, JEMIMAH V. APRIL 2013
26
part of the internet and respondents were aware of it. Fifty three percent of the respondents
were aware of facebook as an internet tool. Myers (2012) mentioned that facebook is the
largest networking sites that the respondents are also aware of. On the other hand, Rouse
(2005) claimed that blogs are the easiest way to publish brilliant thoughts, however in the
result the respondents were not aware of blog as seen in Table 2 that none of the
respondents were aware of blog as an internet tool.
Factors that Measures the Readiness of the
Respondents to Adopt E-business
The factors that measures readiness are the circumstances or conditions that brings
about the results of being ready to adopt e-business. Table 3 shows that 10% of the
respondents under production; 28% under marketing; 18% under processing and 4% under
fermentation mentioned that the availability and accessibility of equipments (laptops,
computer units and printers) and internet tools are the factors that measures their readiness
in adopting e-business. Fifty percent of the respondents under production and 50% under
processing mentioned that the factor that measures their readiness in adopting e-business
is their production practices (manual or mechanized) and the usage of technology in
production. There were 8% of the respondents under production; 10% under marketing and
6% under livestock and bakery who mentioned that one of the factors that measures their
readiness in adopting e-business is the consumers awareness on e-business and internet
tools as well (facebook, e-mail, tweeter, website, blog, and multiply). Also, 10% of the
respondents under production; 16% under marketing; 18% under processing; 4% under
fermentation and 6% under livestock mentioned that the workers and owners knowledge
on e-business is a measure of readiness of a certain business to adopt e-business. Lastly,
E-business Readiness of Agri-Based Businesses in La Trinidad, Benguet and Baguio City
BANTILES, JEMIMAH V. APRIL 2013
28
6% of the respondents under production; 20% under marketing; 16% under processing and
4% under livestock mentioned that the sufficiency of capital is a factor that measures the
readiness of a business to adopt e-business. Thus, factors that measure readiness of
businesses to adopt e-business were: availability and accessibility of equipment and
internet tools in e-business; production practices and usage of technology; supply of raw
materials; consumers awareness on e-business and internet tools; workers and owners
knowledge on e-business and sufficiency of capital.
Effects of Factors that Measures the Readiness
of a Business to adopt E-business
Availability and accessibility of equipment and internet tools in e-business. Out of
the 30 respondents who mentioned the availability and accessibility of equipment and
internet tools in e-business as a measure of readiness in adopting e-business, 83%
mentioned that when there are available equipments then the business can have access to
internet tools. On the other hand, 17% mentioned that when the equipments condition is
out-modeled and slow to work, then the business needs to upgrades its equipments or buy
a new one. The results implies that the business is not ready to adopt e-business when there
are no available equipments to be used to set-up an e-business and when equipments
present is out-modeled or slow to work.
Production practices and usage of technology. The results is based from the 16
respondents who mentioned that production practices and usage of technology is a measure
of e-business readiness. Thirty eight percent mentioned that manual labor can delay bulk
orders online; (44%) mentioned that production cannot be increased easily when there is
no such technology used to reach a wider consumer coverage online, and (19%) of the
E-business Readiness of Agri-Based Businesses in La Trinidad, Benguet and Baguio City
BANTILES, JEMIMAH V. APRIL 2013
31
respondents mentioned that manual labor can cause business to miss opportunities like
increase in demand. Thus, results implies that the business is not ready to adopt e-business
when production is purely manual and there is no technology used to be able to increase
production easily in order to reach a wider coverage of online consumers.
Supply of raw materials. Out of the 13 respondents who mentioned that the supply
of raw materials as a measure to e-business readiness, all of the respondents mentioned that
production is not enough to meet online demand when there is lack of supply of raw
materials. Thus, the business is not yet ready to adopt e-business if there is limited of supply
of raw materials in producing the product unless the business can outsource to other
suppliers of raw material or the business can also choose another alternative raw material
producing another variety to secure continuous supply of products in the market.
Consumers awareness on e-business and internet tools. Out of the 12 respondents
who mentioned that the consumers awareness on e-business and internet tools, all of them
mentioned that when consumers are not aware of internet tools then they will not be able
to order online and might prefer to buy directly to the physical store. Such occurrence
indicates that the business is not ready to adopt e-business when consumers or customers
are not aware of e-business and internet tools. Consumers play a great role on the readiness
of the business to adopt e-business. What consumers wants and knows best is what the
business do and when consumers are not aware of e-business and does not even know to
use internet tools (e-mail, facebook and website) then the business is not e-business ready
until the consumers themselves would like to learn and adopt e-business.
33
Workers and owners knowledge in e-business. Thirty three percent out of 27
respondents that mentioned the above factor as one of the measures in e-business readiness
E-business Readiness of Agri-Based Businesses in La Trinidad, Benguet and Baguio City
BANTILES, JEMIMAH V. APRIL 2013
and adoption mentioned that the effect of the above factor is when workers are not aware
of e-business then the business cannot set-up its own e-business unless it hires new
worker(s) to do e-business for the business. Also, (44%) of the respondents mentioned that
if owner is knowledgeable on e-business, he can train its own workers on e-business or
vice versa, making their workers ready if business will adopt, and (23%) of the respondents
mentioned that If workers has only finished elementary grade or never entered into school,
it is harder for the owner to train its workers e-business unless the owner will hire college
students or high school graduate without problems in speaking English so that he could
train them easily. Results in table 4 reveals that there is a great effect of the knowledge of
workers and owner in e-business because if owners and workers possesses knowledge in
e-business then it would be easier to adopt e-business with no need to hire IT graduates to
set-up a business electronically.
Sufficiency of capital. Table 4 shows the effects of the sufficiency of capital to the
readiness of the business to adopt e-business based from the 23 respondents from Table 3
who mentioned sufficiency of capital as a factor in measuring e-business readiness.
Majority (57%) of the respondents mentioned that when the business experience financial
problems then the business does not have the capacity to sustain e-business most specially
in spending for e-marketing and hiring professional people to do e-business for the
business; (30%) of the respondents mentioned that when there is shortage in capital then
the business will not be able to purchase or maintain e-business equipments and delivery
cars and (13%) of the respondents mentioned that when the business lacks capital, then
the business cannot increase stocks of raw materials and cannot increase production easily
to reach a wider number of consumers in an online store. Implications are the business is
E-business Readiness of Agri-Based Businesses in La Trinidad, Benguet and Baguio City
BANTILES, JEMIMAH V. APRIL 2013
37
not e-ready if it cannot pay the high cost accompanied by e-business. With just mouse
clicks a business can make its own website without that high cost but there are a lot of
hidden costs in e-business like hiring of skilled workers in e-business, high delivery and
electricity costs, maintenance cost of delivery cars and equipments in e-business in which
the business may not be able to shoulder these costs most especially in a small scale
business.
Reasons Why Respondents are Planning or
Not Planning to Engage in E-business
Plan to engage in e-business. Majority (68%) of the respondents in Table 5 were
planning to engage in e-business in the future, while 32% were not planning to enter into
e-business. Results shows that there is a possibility that e-business will be adopted in the
near future in Baguio City and La Trinidad, Benguet. Twenty percent of the respondents
under those who were not planning to engage in e-business came from the businesses under
marketing while 24% of the respondents were planning to engage in e-business came from
those businesses under processing. Implications were businesses who are not planning to
engage in e-business in the future would have the least chance of adopting e-business since
they were not planning to engage in e-business while those businesses who were planning
to engage in e-business were the ones who has the possibility to enter and have its products
positioned online in the near future.
Reasons in engaging and not engaging in e-business. Table 6 is based from the 34
respondents who were planning to enter into and e-business in the future and 16
respondents who were not planning to enter into e-business in the future as shown in Table
5. Thirty five percent of the respondents who were planning to engage in e-business
mentioned that they wanted to cope up with the new trends in technology while 65% of the
E-business Readiness of Agri-Based Businesses in La Trinidad, Benguet and Baguio City
BANTILES, JEMIMAH V. APRIL 2013
42
respondents who were planning to engage in e-business in the future mentioned that they
wanted to expand their business. On the other hand, majority (75%) of the respondents who
were not planning to engage in e-business mentioned that their income is just enough for
family needs while 24 % of the respondents who were not planning to engage in e-business
mentioned that they were satisfied that consumers were buying from their store. Results
show that there were still businesses who were not willing to adopt the new trends in
technology and rather choose the traditional brick-and-mortar. There were respondents
who wanted to expand business while there were those who were just satisfied on the
condition of their business and does not want to take risks in entering into e-business.
Reasons Why e-business is not Adopted by Respondents
Readiness to adopt e-business. Table 7 shows that (4%) of the respondents under
production; (6%) under marketing; (12%) under processing and (6%) under baking
confidently says that they are e-business ready while (12%) of the respondents under
production; (32%) under marketing; (14%) under processing; (6%) under fermentation and
45
livestock and (2%) under bakery admit that they were not ready to adopt e-business.
Reasons why respondents are not ready to adopt e-business. Enterprises under
production of fruit and vegetable mentioned the following reasons on why they are not
ready to adopt e-business: majority (88%) mentioned the computer illiteracy of owner and
workers; 63% mentioned there were no available equipment in e-business; 75% mentioned
consumers were not aware of e-business and internet tools; 63% there was no technology
used for faster production and 50% mentioned insufficiency of capital. Results imply that
business under production of vegetables and fruits were not ready to adopt e-business
E-business Readiness of Agri-Based Businesses in La Trinidad, Benguet and Baguio City
BANTILES, JEMIMAH V. APRIL 2013
because of the following reasons: there were no available equipments in e-business;
workers and owner were illiterate in handling computer; insufficiency of capital;
consumers were not aware of e-business and internet tools and there is no technology used
for faster production. Enterprises under marketing of cut flowers, grains, fertilizer,
vegetable and fruit mentioned the following reasons on why they were not ready to adopt
e-business: majority (79%) mentioned the insufficiency of capital; 68% consumers were
not aware of e-business and internet tools; 53% computer illiteracy of owner and workers
and 42% there is no equipment available equipment in e-business. Results in Table 8
implies that businesses under marketing were not ready to adopt e-business because there
is no available equipment in e-business; owner and workers are illiterate in handling
computer; insufficiency of capital and consumers were not aware of e-business and internet
tools. Enterprises under processing mentioned the following reasons why they were not
ready to adopt e-business: all respondents mentioned there was no technology used for
faster production; majority (69%) mentioned insufficiency of capital; 54% computer
illiteracy of owner and workers; 54% there were no available equipment in e-business and
54% limited supply of raw materials. Thus, businesses under marketing were not ready to
adopt e-business because of the following reasons: lack of supply of raw materials; there
is no technology used for faster production; insufficiency of capital; computer illiteracy of
owner and workers and there is no equipments available in e-business. Enterprises under
fermentation mentioned the following as their reasons on why they were not ready to adopt
e-business: all respondents mentioned limited supply of raw materials; majority (67%)
insufficiency of capital and 67% computer illiteracy of owner and workers. Implications
were business under fermentation were not ready to adopt e-business because of the
E-business Readiness of Agri-Based Businesses in La Trinidad, Benguet and Baguio City
BANTILES, JEMIMAH V. APRIL 2013
following reasons: computer illiteracy of owner and workers, insufficiency of capital and
limited supply of raw materials. Enterprises under livestock mentioned the following
reasons on why they were not ready to adopt e-business: all respondents mentioned the
computer illiteracy of workers and owners and consumers were not aware of e-business
and internet tools. Thus, businesses under livestock were not e-business ready because their
consumers were not aware of e-business and internet tools and the computer illiteracy of
owner and workers. Bakeries are-not ready to adopt e-business because of one reason as
46
shown in Table 8 that all of the respondents under baking mentioned that consumers were
not aware of e-business and internet tools. Overall, result implies that there were a lot of
factors that affects the readiness of a business to adopt e-business and that could not be
settled for just one factor to be able to measure the readiness of a business to adopt e-
business.
E-business Readiness of Agri-Based Businesses in La Trinidad, Benguet and Baguio City
BANTILES, JEMIMAH V. APRIL 2013
SUMMARY, CONCLUSIONS, RECOMMENDATIONS
Summary
This research was conducted to determine the readiness of agri-based business in
Baguio City and La Trinidad, Benguet in adopting e-business.
Respondents were fifty agri-based businesses. Data was collected with the use of
survey questionnaire and personal interviews. The respondents are categorized according
to product commodity. Descriptive analysis using percentage and frequency counts was
used primarily to describe the data.
Among the 50 respondent in Baguio City and La Trinidad, Benguet, 5 were under
fruit based processing; 2 were under vegetable based processing; 7 were under production
and/or marketing of vegetables; 8 production and/or marketing of fruits; 4 root crop based
marketing; 3 marketing of farm inputs; 3 grain marketing; 4 baking and 3 under livestock.
The accessibility of equipments and internet tools in e-business affects the business
readiness to adopt e-business in terms of how the business can start its online store if there
are available equipments as well as the equipments condition and its accessibility to
internet tools to be able to connect its online store to its consumers.
Production practices and usage of technology affects the readiness of the business
to adopt e-business in the part of a faster production level to meet bulk orders online the
ease of increasing production through machines to meet online demand and the
opportunities that the business can supply its products to a wider coverage of consumers
online when production there is a technology used to meet consumers needs.
E-business Readiness of Agri-Based Businesses in La Trinidad, Benguet and Baguio City
BANTILES, JEMIMAH V. APRIL 2013
The business is not ready to adopt e-business when it cannot produce its products
continuously due to lack of supply of raw materials. Production is not secured to supply
consumers needs online because the raw materials are not produced year round.
The business readiness to adopt e-business is greatly affected by the consumer’s
awareness on e-business and internet tools. When consumers are not aware of e-business
and internet tools, there will be no one to patronize the businesses online store. Consumers
cannot order online and will cause the business to stay in a physical store when they don’t
know how to use such internet tools like e-mail, website and facebook.
The knowledge of the owner on e-business can be an opportunity for the workers
to learn e-business and apply it on the business. The owner has to choose workers that are
at least has finished high school and college without problems on speaking and reading
English so that the succession of learning e-business would be that easy for the owner to
do. When workers are not really knowledgeable on e-business, then the business cannot
adopt e-business unless hiring of new skilled workers in e-business would take into place.
The insufficiency of capital is an indicator that the business is not suited to set-up
an e-business. It’s true that in just a single click a business can make its own online store
on certain sites but there are other cost accompanied by e-business that the business cannot
shoulder when there is insufficiency of capital. E-businesses spend on maintaining
equipments used in e-business, the business has to spend on e-marketing to advertise its
own sites, the business has to hire professional people to do the system and design of their
own e-business, maintenance of delivery cars can cost much as well as the delivery cost of
product, continuous product innovation and product developments should take place to
meet the demands on consumers in an online store, the business must spend on machines
E-business Readiness of Agri-Based Businesses in La Trinidad, Benguet and Baguio City
BANTILES, JEMIMAH V. APRIL 2013
for faster production and the increase in stocks of raw materials also cost that much.
Without money in the business, it can never fulfill what the consumers demand in an online
store. Thus, the readiness of the business to adopt e-business is greatly affected by the
sufficiency of capital.
Majority of the respondents who are planning to engage in e-business in the future
came from the type of enterprises under marketing and processing. Majority of the
respondents who are planning to engage in e-business reasoned that they wanted to expand
their business. Majority of the respondents who are not engaging into e-business reasoned
that their income is just enough for family needs.
Majority of the respondents are not e-business ready. The reasons why e-business
is not being adopted or fully adopted by respondents is because of insufficiency of capital;
there are no available equipments in e-business; computer illiteracy of owners and workers;
consumers were not aware of e-business and does not even know how to use internet tools;
lack of supply of raw materials and there are no technology used for a faster production.
Conclusions
The following conclusions were drawn based on the findings:
1. Majority of the respondents were aware of electronic business. The respondents
have never encounter or tried using blog as an internet tool. They do not now that blog is
the easiest way in which products can be advertised or sold and in which a lot of people
are surfing into;
2. The factors that affects the readiness of the respondents to adopt e-business were
the following: availability and accessibility of equipment and internet tools in e-business;
E-business Readiness of Agri-Based Businesses in La Trinidad, Benguet and Baguio City
BANTILES, JEMIMAH V. APRIL 2013
production practices and technology usage of technology; lack of supply of raw material;
consumers awareness on e-business and internet tools; workers and owner knowledge on
e-business and sufficiency of capital;
3. Type of enterprises under production has the following constraints that lead them
not ready to adopt e-business: no available equipments in e-business; there is no technology
used for a faster production; consumers were not aware of e-business and internet tool;
owners and works were computer illiterate and the insufficiency of capital. Those
enterprises under marketing has the following constraints leading them not ready to adopt
e-business: no available equipments in e-business; consumers were not aware of e-business
and internet tool; owners and works were computer illiterate and the insufficiency of
capital. Enterprises under processing faced obstacles like no available equipments in e-
business; there is no technology used for a faster production; lack of supply of raw
materials; owners and works were computer illiterate and the insufficiency of capital as
constraints that prove that they are not e-business ready. Those under fermentation
experienced the situations like computer illiteracy of owners and workers; insufficiency of
capital and the lack of supply of raw materials that leads them not ready to adopt e-business.
Businesses under livestock were not e-ready due to the reasons that the owners and workers
were computer illiterate and their consumers were not aware of e-business and internet
tools as well. Bakeries experience only one reason why their business is not adopting e-
business it is because the consumers of their products were not aware of e-business and
internet tools that results them to stay in a brick-and-mortar store;
4. Respondents do not really know the opportunities in e-business. All they know
is they can only expand the business and cope-up with the new trends in technology not
E-business Readiness of Agri-Based Businesses in La Trinidad, Benguet and Baguio City
BANTILES, JEMIMAH V. APRIL 2013
knowing that they can have the opportunities like to explore new markets outlets online;
negotiations to other suppliers can be done; business can develop its product so that it can
compete globally; business can connect to possible consumers abroad and in other parts of
the country; business will have a readily available information on new trends to consumer
tastes and preferences; comments and suggestions of consumers can be expressed freely
and others. Respondents thought that there is no need for an online store because they think
they can always keep their consumers buying in their physical store not looking for
convenience that e-business could provide. Also the respondents were not aware that the
age of information technology is starting its way to be adopted in many businesses and
those who will not be adopting will be left behind leading them the need to learn how e-
business is done in order to maintain business and satisfy the needs of the family; and,
5. Majority of the respondents experienced the lack of financial support to be able
to maintain the high cost of e-business like high delivery and electricity cost; hiring of
skilled e-business workers; maintenance of e-business equipments and delivery cars and
high e-marketing costs. Illiteracy in computer handling hampers the respondents to
understand the benefits of e-business to their business. The suppliers of the respondents on
their raw materials cannot produce enough thus; the respondents cannot adopt e-business
when there is lack of raw materials supplied by the respondents.
Recommendations
For e-business to be fully adopted by these agri-based businesses, there is a need
for these businesses to upgrade their knowledge and skills on information technology.
Businesses should focus on developing their products content, packaging, and details ready
for online positioning. Owners can create groups with the objectives of making programs
E-business Readiness of Agri-Based Businesses in La Trinidad, Benguet and Baguio City
BANTILES, JEMIMAH V. APRIL 2013
through government connections like seminars, workshops and trainings on e-business and
how to use the internet tools for agri-based owners and workers. Also, there could also be
language enhancement trainings to increase the effectiveness of workers most especially
for foreign clients there would be no occurrence of language barriers. Owners can seek
help from professionals to do the work for them like web designing, system designs, online
advertisements and others. Businesses should also improve the location where production
takes place and acquisition of machineries can be done to upgrade production level.
Owners should set standards on workers that are to be hired for the maximum benefit of
the business.
E-business Readiness of Agri-Based Businesses in La Trinidad, Benguet and Baguio City
BANTILES, JEMIMAH V. APRIL 2013
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