E-Commerce Role in Developing Countries

Topics: Internet, Developing country, Electronic commerce Pages: 15 (5094 words) Published: November 11, 2011
The number of internet users has been growing steadily around the world and it creates an opportunities for regional and global e-commerce to develop. Therefore, by the impact of internet, both socioeconomic and infrastructural have created a major level of differentiation in the growth and acceptance of e-commerce at different regions of the world. This differentiation occurred in the field of socioeconomic and infrastructure. To identify the diffusion of e-commerce in the various locations of the world, they have been conducted different studies and models. Infrastructure and services are considered as a primary diffusion factor of the model (Efendioglu, Yip, & Murray, University of San Francisco, 2009).

However, these factors will create a difference in the acceptance of electronic commerce in the developing countries, which depends on the cultural, infrastructure, and socioeconomic. Depending on different regions in the developing world, they have various models to discover the electronic commerce diffusion (Zwass, 1999).E-payment systems comes under the services and some of these services are securing messages, use of credit card, and electronic markets. According to Grabner-Kraeuter trust is “the most significant long-term barrier for realizing the potential of E-Commerce to consumers” (Grabner-Kraeuter, 2002). More than eighty percentage of the world’s population are in developing countries, where they have the opportunity to grow the electronic commerce. Theoretical clams illustrates that electronic commerce can increase the economic growth rate of the developing countries, but they have little empirical on the outcomes of electronic commerce adoption. From the studies it can be indicated that intra and inter organizational communications are the benefits for electronic commerce, depending on these improvements. By implementing electronic commerce it can benefit the customer or supplier linkages and cost savings. This would increase the competitiveness, disintermediation, and global supply chain (Molla & Heeks,2007). This paper discusses on the model of electronic commerce adoption, diffusion of electronic commerce in infrastructural and socioeconomic factors. E-commerce adoption is clearly explained in the figure1.There are various challenges and benefits in developing countries for electronic commerce adoption, these factors are discussed clearly in figure 2.The major barriers for developing countries would be cultural and technological barriers, which does not allow electronic commerce to grow. E-Commerce Adoption for Businesses in Developing Countries

Depending on the information technology and e-commerce context, the development of business differs in developing countries. There are some environmental constraints that face greater risks substantially, which occur due to the implementation of these constraints in e-commerce for developing countries. A little study has been conducted on the factors that differ in the complexity of e-commerce in developing countries, which are used in these markets. Molla and Licker have formulated an e-commerce adoption model, known as the Perceived E-Readiness Model, and a measuring instrument. Because of the perceived factors the model has been important. A differentiation between the primary and secondary characteristics of the managerial, environmental, innovation, and organizational adoption have been studied. Primary characteristics are intrinsic in the implementation context and can be measured independently. Secondary characteristics are perception-based characteristics that could reasonably predict innovation adoption intentions and behaviors. Many characteristics of innovation and organizational characteristics have been secondary. The two organizations have the same level of organizational resources and they operate in the same context, depending on their different perceptions they differ in decisions. Therefore,...
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