Role of Internet in Determining the Success of Business

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Role of Internet in Determining the Success of Business Entrepreneurial Ideas

The Internet impacts significantly in the success of businesses across the world. Today, the majority of big companies account their success to the inclusion of technology in both their production and marketing aspects. However, business entrepreneurs must have the necessary understanding of the role of technology to promote its adoption within their organizations. In exploring how the internet influences the success of entrepreneurial business ideas, it's critical to explore some key concepts such as the entrepreneurship and the internet. Entrepreneurship defines the process of implementing business ideas into practice. According to Desai (2008) "entrepreneurship is an approach where an individual combines the necessary factors of production (labor, capital, entrepreneur) to achieve the desired business objectives." Therefore, in this research proposal, the researcher aims at exploring the role of the internet in determining the success of entrepreneurial ideas. The researcher will further adopt different approaches to gain a deeper understanding of the research issue such as exploring previous studies on the topic, appropriate data collection method as well as analysis that helps to make the right conclusions on the question.

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Research Objectives

This research has the core objective of investigating the role of the internet in determining the success of business entrepreneurs. However, the research objectives can further be exemplified by the list below;

- To ascertain the role of the web in determining the entrepreneurial success.

- To explore different internet-based approaches that can be adopted to shape business success.

- To define the appropriate methods that can ensure the success is attained without constraints

The research questions provide the basis for understanding the research issue by setting the direction for the data to be collected. The questions further shape the analysis process by ensuring the data collected answers the research questions. Besides the fundamental question of the role of internet in determining the success of business entrepreneurs ideas, the following questions will guide this research.

- What is the role of the web in determining entrepreneurial success?

- What are some of the methods used to ensure these successes is attained without constraints?

- How can businesses ensure sustainability by adopting the internet-based approaches

Problem Statement

The overall business success or actualization of the entrepreneurial ideas depend on a variety of factors such as capital. However, the internet serves as one of the critical aspects that can determine the business growth. In a world characterized by improved technologies industry have been forced to integrate technology into their business activities. The internet serves as the critical approach that can be adopted by the businesses and entrepreneurs to promote success in different ways such as engaging their customers to get ideas as well as marketing the business. Despite the growth in the use of internet in various business aspects, some researchers such as Casson (2003) have put emphasis on exploring the role of the web in helping business people to ensure efficiency in their production process. Bull & Willard (1991), argues that some entrepreneurs or business lack the appropriate skills and infrastructure that is necessary to adopt the use of internet in promoting their business ideas as well as ensuring their business success. Additionally, some of the firm people fail to understand the role of the web in ensuring their business success. Thus it's evident that the internet is a powerful tool that can play a significant role in ensuring business success through production efficiency and marketing among other aspects as well as predicting the economic trends within the society.

Research Method

The section is critical since it determines the approach take to conduct the research such as the data collection methods, the sample used or the analysis methods adopted about the research objectives. This study is based on gaining a deeper understanding of the role of the internet in determining the success of business people ideas or the overall business success. However, it's critical to gain statistical data on the research issue; hence, the study will adopt the mixed research approach that involves both quantitative and qualitative research methods. Additionally, the research will have both primary and secondary data collected from a population of the study. The population will also be selected using random sampling to gain 30 samples. The research analysis also adopts the mixed research approach; hence, will involve descriptive and summary statistics analysis which will also incorporate Strata software to aid in the data analysis process and interpretations.

Literature Review

The section is critical in evaluating previous studies on the topic to gain an understanding of the research gaps as well as provide the basis for the current research. The section will also provide a theoretical perspective by adopting three key theories which involve the economic theory, innovation theory of Schumpeter and the Hagen theory of entrepreneurship. Additionally, in this section, the previous studies on the topic clarify the historical background of entrepreneurship.

Economic Theory

According to research Fang (2011), generating ideas and business success on the internet is a core goal of the current business world. Despite the inherent complexity of different activities and the speed of change in technology, the Internet serves as the best approach that has promoted business success in a variety of ways. It improves the chances of adopting creativity in marketing as well as innovation to meet the demands and competition changes. According to research by Charantimath (2006), different theories can be utilized to enhance understanding of the impact of the internet in promoting business success. The economic theory is one of the most common methods in the areas of economics and social sciences. According to Casson (2003), "the economic theory attributes success and failure to entirely material factors such as the labor, capital, and natural resources." It provides the basis for understanding why some businesses succeed while others fail as well as understanding the economic development and distribution of income.

According to Casson (2003), the economic theory demonstrates that there is a close connection between the personal qualities of the entrepreneur and the financial success of the business or firm which is measured by its profitability and growth. The economic theory adopts a personalized view of the business which suggests that the success of the entrepreneurial ideas is based on the qualities of the people which also helps them to improve the allocation of resources. Desai (2008) further support the argument by suggesting that there exist critical fundamental entrepreneurship qualities that promote the overall business performance. Both Casson(2003) and Desai (2008) argues that successful entrepreneurs possess excellent personal qualities such as education, morality ad prevailing culture.

Research by Nafziger (2012), also explores the economic theory and the development of economic thoughts and presents the notion that innovation plays a significant role in the economic theory. The researcher further argued that change increases the management efficiency within a new or existing business setting which enhances the overall success of the firm. Charantimath (2006), further suggested that the modern economy and the success of any business idea relies on knowledge-based economy suggesting that entrepreneurs with ideas must also possess the necessary knowledge that can enhance the success of their activities in the market. Knowledge capital and innovation has a significant impact on the economy, business success and the society. Similarly, theorists of classical economics have also demonstrated increased focus on physical capital as critical in the management process while failing to consider the skills and intellect roles (Futter, Cion, Overton, American Bar Association & American Society of Corporate Secretaries, 2002). As such, some of the underestimated factors such as skills and intellectual ability have become a critical issue or the basis for major theories of the economy such as Schumpeter's innovation theory (Schumpeter, Swedberg & Augello, 1991).

Innovation Theory of Schumpeter

According to Cantwell (2000), Schumpeter believed on a healthy economy being derived from an economy that is continuously affected by the technological innovation rather than a balance one of equilibrium economy. His argument also relied more on the idea that critical innovations that emerge on a regular basis provide the basis or strength for economic growth. Schumpeter also developed the theory of economic growth and business cycle by providing the foundation of innovation as the basis for success. His argument also focused on the technological innovation as a significant aspect in the success of any business or entrepreneurial ideas. The innovation theory is critical to understanding business success primarily in the current world that is characterized by changing technologies (Sengupta, 2014).

According to Cantwell (2000), Schumpeter presented the view that innovation has the potential to be applied in different fields and is perceived as the cause of ups and downs within the business cycle. Schumpeter's innovation theory further argued that each business is unique and attributable to entirely different industries. The innovation theory is also centered on the idea that business people or companies ability to innovate serve as the key to achieving competitive advantage over its competitors (Schumpeter, Swedberg & Augello, 1991). Schumpeter innovation theory also relates to the economic theory through concepts such as economic cycles. According to Sengupta (2014), the methods conclusively demonstrates that the success of business ideas or a company/economies is not only based on its competitiveness but also knowledge and innovation which stimulates economic growth. Medearis (2009), argues that Schumpeter's innovation theory is tied to the concept of the introduction of a new business or product in a particular industry, opening a new market or the acquisition of a new source of resources. A majority of the today's economic sciences are based on Schumpeter's approach to the degree of knowledge, changes and the effects on the company and the market. Further innovation is presented as extending beyond the realms of technology to spheres of organization and management.

Aghion & Akcigit (2015), suggests that Schumpeter approach to innovation has made a significant impact in understanding today economic sciences. However, like Schumpeter, the majority of the theoretical approaches on the topic align business or economic success to innovation suggesting that organizations should focus on improving innovation to enhance success. The innovation theory is justified in the research issue in context since it involves the introduction of new business ideas or product in a new market which aligns with the five cases of innovation theory as presented by Schumpeter (Medearis, 2009). The innovation theory strongly related economic success or business success with the concept of providing a solution because innovation is centered on knowledge. However, other researchers such as Casson (2003), note that the creation of new knowledge among individuals have the potential of establishing different externalities about production capacity presenting the notion that knowledge is not patentable. Hence, organizations or business people must continuously improve knowledge to meet the changing business needs as well as enhance economic growth primarily in competitive markets.

Hagen Theory of Entrepreneurship

According to Desai (2008), both economic and innovation methods have a central focus on improving business or financial performance through improving knowledge and innovation. The two approaches adequately recognize the impact of the disruptive technologies and present the need for business people to be knowledgeable to enhance the success of their ideas. Hagen's theory of entrepreneurship can also be adopted in this case since it related with the entrepreneurial minds and demonstrates the underlying factors that influence business performance or success of business. Hagen's theory of entrepreneurship also emphasizes the role of knowledge and innovation (Cantwell, 2000). However, Hagen was more accurate in contributors to economic growth or business success by relating it to the individual entrepreneur characteristics such as a creative personality with a high need for achievement and problem solver.

According to Fang (2011), Hagen's theory of entrepreneurship also related economic growth to the process of change in society. Additionally, he pointed out creative innovation as the fundamental characteristic of economic growth. According to Lee (2009), Hagen's theory of entrepreneurship relates to Schumpeter's innovation theory is tied innovation as the key driver of economic growth. The two approaches enhance understanding on the integration of internet in determining the success of business entrepreneurs ideas and financial performance. Hagen's entrepreneurship theory presents the notion that innovation is a favorable economic condition which promotes growth. However, the personality traits also influence the chances of growth and success in business. The internet presents a great opportunity to support innovation thus serves as a critical determinant of economic growth or business success (Cantwell, 2000).

According to Kursan & Mihic (2010), Hagen's theory of entrepreneurship relates success with individual ability as well as an innovational personality. However, the argument pointed out that innovation requires creativity suggesting that creative people have higher probabilities of influencing economic growth or business success. The theory aligns with the research issue based on the idea that the internet enhances the individual creativity and innovational personality thus contributing to the overall success of the business or entrepreneurial ideas. Hagen also postulated that proper upbringing provides the basis for developing the required characters as well as living in a society that has the greater stability that is equally disturbed by powerful forces which help demonstrate the individual character. As Fang (2011), suggested, both Schumpeter and Hagen show similarities in their works in analyzing the process of growth and consider innovation and creative nature as key drivers of success.

The three theories provide the critical theoretical foundation for understanding the concept of entrepreneurship and the core drivers of economic growth or business success. The three theorists further disclose the underlying factors that influence the chances of the internet being regarded as a key contributor to business success. According to Teagarden et al., (2009), the internet enhances innovation, communication, and teamwork which are critical in building an organization as well as improving the managerial and leadership skills of the business leaders. The concepts of creativity, innovation, and individual abilities have also been exemplified as key contributors to success and have been extensively covered in the three works (Futter, Cion, Overton, American Bar Association & American Society of Corporate Secretaries, 2002).

Research Methodology

Research methodology is a critical stage in the research since it provides the basis for understanding how the research data will be collected as well as the approach adopted in the research. The methodology used provides the basis for collecting both secondary and primary data as well as providing the basis for data analysis and interpretations. In this section, I will explore the research method used, the data collection, approach used and the possible limitations of the research. The mixed research method which involves both quantitative and qualitative approaches is to be used while the data is to be obtained from both secondary and primary sources where a random sampling will be used to get 30 samples from the population of study. The mixed research method provides both descriptive and statistical results which enhance understanding on the research issue as well as shaping the analysis process.

Research Paradigm

The research paradigm represents the assumptions or the shared understanding in the research which also aligns with the research methodology used. In this case, the researcher will use mixed research approach that involves both quantitative and qualitative research. The study will use positivist research paradigm which is based on hypothesis testing to enhance understanding of the desired truth as well as predicting the research issue. The research paradigm relies more on quantitative data to achieve the research objectives. The justification for the research paradigm is based on the idea that it provides both qualitative and quantitative interpretation of the topic (Ketchen & Bergh, 2006).

Research Approach

The research plan defines how the research will be conducted, testing the hypothesis as well as verifying the assumptions and data interpretation. Two common methods are used deductive and inductive approach. However, this research will adopt the deductive research approach which uses top-down in testing the hypothesis and validating the assumptions or theories used (Ketchen & Bergh, 2006). It provides a chance to test the research issue as well as narrow down reasoning on the role of the internet in determining the success of the entrepreneurial business ideas. The deductive approach also aligns with both qualitative and quantitative research method used in the research. The deductive approach also relies on data collection to determine the hypothesis as well as make the appropriate conclusions. In this case, the deductive method tests the assumption that the internet plays a significant role in the success or any business or business ideas.

Data Collection (Primary and Secondary Data)

The methods adopted in collecting data aligns with the mixed research approach which was selected for this research. The methods provided the basis for getting both primary and secondary data. The data collection stage is an essential part of this investigation since it provides a chance to collect data that can help answer the research question and objectives. In this case, primary data was collected through interviewing and questionnaires based on a sample selected from different entrepreneurs. The two data collection methods align with the qualitative and quantitative research. Additionally, they provide a chance to get participants perspective as well as deriving numerical data. A sample of 30 participants from the population of study which involves business people was used to collect the data required.

Questionnaires were self-administered and aligned with the preference for internet use in businesses. Besides, they included open-ended questions which provided a deeper understanding of the issue and the participant's views. Additionally, secondary data was collected from peer-reviewed journals, articles, and textbooks among other resources. The secondary data provided a chance to enhance the quality of the research as well as identify gaps in previous studies. Both primary and secondary data collection methods provide an in-depth understanding of the research issue and enhance the chances of making valid statistical conclusions.

Sample Selection/Technique

Sampling is often regarded as a critical aspect of research due to its ability to enhance the chances of collecting data and covering a large population being studied. In this study, random sampling will be used to obtain 30 samples from the population of study which includes business people who have adopted the internet in their companies or enterprises. The method selected is justified since it enhances the chances of reducing bias and ensuring equal representation of the population of study.

Ethical Considerations

Ethical issues are key contributors to the quality and reliability of the research. Since the study is based on addressing the social problem, it is expected to experience different ethical issues. However, the researcher will ensure ethical consideration such as participant consent before the participation in the research process. Members data integrity and privacy will also serve as a critical moral issue which will require appropriate considerations.

Research Constraints

The primary limitations of the study are as follows:

- Insufficient data from the entrepreneurs since most of the entrepreneurs consider their information very vital, private and confidential hence are not ready to disclose it to anyone.

- There is a financial constraint since it involves traveling from one region to another and purchase of research materials which are expensive.

- The time frame for collecting data, sorting, and coding them in a manner ready for analysis is quite limited.

Data Analysis and Interpretation

Data analysis serves as one of the most critical phases of the research and provides the basis for analyzing the data collected as well as making the desired conclusions. In this case, the data analysis method adopted aligns with the mixed research approach to meet the research objectives. The data analysis stage is based on providing descriptive and summary statistics from the data collected. The two analysis methods align with qualitative and quantitative research methods. Additionally, the researcher will also use Strata software to aid in data analysis and interpretation process. The justification for selecting the methods is based on the idea that they provide quality and reliable conclusions which serve as an accurate reflection of the issue. In this case, the data analysis will enhance understanding of the role of the internet in increasing business success.

Conclusion

The advancement in technology more so the internet has significantly impacted different aspects of human life such as business or entrepreneurship. The internet serves as one of the best approaches that determine the success or failure of entrepreneurial ideas as well as their appropriate implementation. The internet enhances the efficiency of business practices such as marketing. The research proposal provides a direction or guideline on how the study will be conducted to evaluate the role of the internet in determining the success of the entrepreneur's ideas. The study will also consider previous studies on the topic to provide detailed information on the subject.

References

Aghion, P. and Akcigit, U. 2015. Innovation and growth: The Schumpeterian perspective. COEURE Coordination Action.

Bull, I., & Willard, G. E. 1991. Towards a theory of entrepreneurship. Journal of Business Venturing, vol.8, pp.183-195.

Casson, M. 2003. The entrepreneur: An economic theory. Cheltenham, U.K: Edward Elgar.

Cantwell, J.A., 2000. Innovation, profits and growth: Schumpeter and Penrose. University of Reading, Department of Economics.

Charantimath, P. M. 2006. Entrepreneurship development and small business enterprises. New Delhi: Pearson Education.

Desai, V. 2008. Fundamentals of entrepreneurship and small business management. Mumbai: Global Media.

Futter, V., Cion, J. A., Overton, G. W., American Bar Association, & American Society of Corporate Secretaries. 2002. Nonprofit governance and management. Chicago, IL: Section of Business Law, American Bar Association.

Ketchen, D. J., & Bergh, D. D. 2006. Research methodology in strategy and management. Amsterdam: Elsevier JAI.

Kursan, I. and Mihic, M. 2010. Business intelligence: The role of the internet in marketing research and business decision-making. Management: Journal of Contemporary Management Issues, 15(1), pp.69-86.

Lee, I. 2009. Emergent strategies for e-business processes, services, and implications: Advancing corporate frameworks. Hershey: Information Science Reference.

Medearis, J. 2009. Joseph A. Schumpeter. New York: Continuum.

Nafziger, E. W. 2012. Economic development. Cambridge: Cambridge University Press.

Sengupta, J. 2014. Theory of innovation: A new paradigm of growth.

Schumpeter, J. A., Swedberg, R., & Augello, M. M. 1991. The economics and sociology of capitalism. Princeton, N.J: Princeton univ. Press.

Teagarden, M. B., Pashtenko, V. H., Ahmed, Z. U., Richard C., Abdul, R. C., Nor, H. A., Mohd, Z. A. Academy for Global Business Advancement. 2009. Advances in global business research. Rockwall, TX: Academy for Global Business Advancement.

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Role of Internet in Determining the Success of Business. (2019, Apr 23). Retrieved from https://speedypaper.com/essays/101-role-of-internet-in-determining-the-success-of-business

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