Effect of Digitalization on Business in a Small Developing Economy: The Case of Fiji Islands

Abstract

Digital technologies open up dynamic platforms for business operations. The system designs make applications more beneficial in a widely open spectrum of business, irrespective of the environment of operation such as the size of the business, market and business culture. An attempt was made to investigate characteristics of e-business and e-service operations in Fiji Islands to identify driving forces and challenges related to digitization of business and to show that e-business models have succeeded in a Small Developing Nation. A secondary set of information were gathered and analyzed. It was revealed that market challenges and the need for operational efficiencies have driven the business to adopt e-service, while security issues and disposable income of consumers are seen as challenges. Further, e-business models such as market creator, content provider and community provider models have played a more dominating role, threatening traditional business models, due to affordability, proven operational efficiency, and market visibility. The case of “content provider model” may carry threats in competitive advantage from features of the traditional business model.