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

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.