Term Paper on DIGITAL BANGLADESH
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E-Readiness for E-Commerce Development in Bangladesh By ASM Nazmul Hasan MPPG 5th Batch December 2016 E-Readiness for E-Commerce Development in Bangladesh By ASM Nazmul Hasan MPPG 5th Batch Supervisor Dr. Rizwan Khair Associate Professor Thesis submitted to the Public Policy and Governance (PPG) Program in partial fulfillment for the award of Master in Public Policy and Governance (MPPG) December 2016 “Dedicated to my spouse and kids because the work was possible due to their temporary absence with me” Declaration I declare that the dissertation entitled “E-Readiness for E-Commerce Development in Bangladesh” submitted to the PPG Program of North South University, Bangladesh for the Degree of Master in Public Policy and Governance (MPPG) is an original work of mine. No part of it, in any form, has been copied from other sources without acknowledgement or submitted to any other university or institute for any degree or diploma. Views and expressions of the thesis bear the responsibility of mine with the exclusion of PPG for any errors and omissions to it. Signature with Date: Full Name: ASM Nazmul Hasan ID No: 1513354085 Acknowledgement First of all praise to Allah, the most magnificent and the most merciful for keeping me in such a favorable condition for completing the thesis work. Then I would like to take opportunity to express my deepest gratitude to my supervisor Dr. Rizwan Khair, visiting Associate Professor, Department of Political Science and Sociology, North South University, Dhaka and Director (International Program), Bangladesh Public Administration Training Centre (BPATC), Savar, Dhaka for his kind support and ceaseless guidance throughout the research work. His intellectual suggestions shaped my raw idea from the very beginning that helped me a lot to explore more in the research work. I would like to convey my sincere appreciation to Professor Salahuddin M. Aminuzzaman, Adviser, MPPG, North South University, Dhaka and Professor SK. Tawfique M. Haque, Director, MPPG, North South University, Dhaka for delivering their meaningful comments and guideline during the total MPPG program including thesis presentation. I am also very grateful to my teachers Dr. Istiaq Jamil, Dr. Md. Mahfuzul Haque and Dr. Shakil Ahmed for offering important suggestions and comments during the whole journey of my research work. I would like to offer my sincere thanks to Mr. Md. Akram Hossain, Research Associate, MPPG, North South University, Dhaka for his cooperation with friendly attitude in spite of his severe busyness. My special thanks to all of the interviewees who have given me huge time during their business peak hour with ample provided information. I am also very much thankful to the respondents for their sincere response in the questionnaire survey. I am grateful to my family members especially to my respected parents for their support always. December 2016 ASM Nazmul Hasan Acknowledgement, Page | II Abstract After the invention of computer and especially after introducing the computer networking, the world has experienced a completely new dimension in the communication sector. E- commerce is a product of this digital communication. It is now a reality for the developing country as well the developed world. For having healthy e-commerce in a country ensuring e-readiness is very essential. The study was planned to examine the e-readiness for the e- commerce development in Bangladesh which will give us an opportunity to understand our country’s position regarding e-commerce. Lot of writings on Bangladesh e-commerce has been found in the intellectual arena. Most of those writings are for advocating on behalf of particular groups or corporate organizations. But this study is an academic one to investigate e-readiness for the development of Bangladesh e-commerce. In this aspect this is expected that the study will be unique one to investigate the e-readiness of e-commerce development in Bangladesh. To fulfill the target, the research work was designed with the combination of qualitative and quantitative both methods. Qualitative data has been collected from the interviews, report, publications and case studies. Quantitative data was collected from the survey data and also from interviews and some reports. Both primary and secondary sources have been used to collect necessary data to conduct the study. From the study it has found that Bangladesh e-commerce is a new sector that started its journey in year 2009 and more specifically it has been started in full pledge since year 2013. Meantime many e-commerce business units have been developed. Study shows that our e- commerce sector is not developed yet because of e-readiness issues. We have good infrastructural development in the city areas but in rural and urban areas the infrastructure is yet to develop. We have secured online communication but at user level we have less trust. Customer prefers hard cash payment after receiving products. People like to have SMS confirmation against every online transaction. Customer have less trust on business parties about e-commerce transaction and business entities also have lack of trust on customers for the same. Study revealed that third party involvement is needed to develop the trust between the customer and business. People feel the third party presence like globally renowned Paypal or any other trusted units. Government may need regulatory policies so that third party can be able to handle the legal issues, commercial transaction and also government can monitor and control these parties. Goods return policy is not practiced by most of the online business units. Development of our postal service is another concern for e-commerce development. It has been observed that government has no e-commerce friendly policy yet. ICT policies are not supportive enough to promote e-commerce activities. This study concludes that we are now passing very vital time for e-commerce development. E-commerce may have some negative notions in our culture but spreading of e-commerce is inevitable because this is the product of ICT development. So now this is the time to take initiatives so that this new sector can be developed smoothly in Bangladesh. Keywords: E-commerce, E-readiness, E-commerce Development, Bangladesh e-commerce. Abstract, Page | III Table of Contents Page No. Acknowledgement ................................................................................................................. II Abstract ................................................................................................................................ III Table of Contents .................................................................................................................. IV List of Tables ........................................................................................................................ VII List of Figures ...................................................................................................................... VIII Acronyms & Abbreviations .................................................................................................... IX CHAPTER-1 : Introduction ....................................................................................................... 1 1.1 Introduction ..................................................................................................................... 1 1.2 Background of the Study .................................................................................................. 2 1.3 Definition of E-Commerce................................................................................................ 5 1.4 E-Commerce and E-Business ............................................................................................ 9 1.5 E-Readiness .................................................................................................................... 10 1.6 E-Commerce and E-Government ................................................................................... 14 1.7 Category of Commerce .................................................................................................. 16 1.8 Objective of the study .................................................................................................... 17 1.9 Research Questions ....................................................................................................... 18 1.10 Rationale of the Study .................................................................................................... 18 1.11 Chapter Outline .............................................................................................................. 19 CHAPTER-2 : Literature Review, Theoretical Concepts & Framework ..................................... 21 2.1 Introduction ................................................................................................................... 21 2.2 Literature Review ........................................................................................................... 21 2.3 Theoretical Discussion ................................................................................................... 30 2.4 Analytical Framework .................................................................................................... 33 2.5 Chapter Conclusion ........................................................................................................ 36 CHAPTER-3 : Methodology ..................................................................................................