The Diffusion of E-commerce in Developing Economies

The Diffusion of E-commerce in Developing Economies

A Resource-based Approach

Zeinab Karake Shalhoub and Sheikha Lubna Al Qasimi

The authors of this unique volume provide a timely and valuable perspective on how technology and the Internet revolution are changing business and spurring development across the world, especially in emerging countries. Utilizing a framework grounded in rigorous theory, they provide a fine-grained understanding of electronic commerce adoption processes by public and private sector entities in developing countries. In so doing, they consider how each exchange encounter is shaped by, and in turn shapes, relational characteristics that form the basis for growth and development.

Chapter 5: Data Collection and Empirical Results

Zeinab Karake Shalhoub and Sheikha Lubna Al Qasimi

Subjects: business and management, international business, development studies, development economics, economics and finance, development economics, international business, international economics


INTRODUCTION The literature on electronic commerce (e-commerce) diffusion is novel but has already established a foundation for discussions. The rapid expansion of the Internet holds substantial promise for developing countries, which can benefit to a great extent from the Internet’s communication and information capacity to help meet their economic, social and political needs. The increasing speed of inserting information into electronic media is making information resources based anywhere in the world available to all citizens of the globe through the Internet. Developing countries are the number one beneficiaries of the recent revolution in communication and information technology. The revolution serves, and can serve, all sectors of society. The areas of education, health, social policy, commerce and trade, government, agriculture, communications, and research and development (R&D) all are prime winners. The correlation between information, communication, and economic growth is well known, making the usefulness of networks nearly selfevident. Electronic networking is a strong, speedy, and economical way to communicate and to exchange information. When networks are available, collaboration among various entities and individuals seems to come into being almost spontaneously. Forrester estimates that the growth of e-commerce has been overwhelming and reached US$6.8 trillion in 2004 (Forrester Research, 2003). In many countries, government and business entities have used the Internet to decrease transaction costs, reach a wider audience and improve profitability. Customers are the prime beneficiaries: they use the Internet as a way to gather information and increase their search efficiency and effectiveness. Furthermore, the...

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