other individuals who are prepared to purchase them. are significant and positive, implying that having a common language and a colonial political tie (or a regional trade agreement) boost trade flows from country i to country j, South-to-North and EAC-to-ROW. 2013 This study shows that government aims of E-business tourism have not been fully realized. Factors affecting the usage of E-business in the tourism industry have been well-documented in developed countries, but further studies are needed to investigate the usage of E-business in the tourism industry among developing countries. Retrieved from https://www.wto.org/english/res_e/booksp_e/ecom_brochure_e.pdf, Yushkova E (2014) Impact of ICT on trade in different technology groups: analysis and implications. 153, OECD Publishing: Paris. ij The respondents still perceive the factors of internet fraud and security are a significant issue for E-business usage. Quantitative evidence on transparency in regional trade agreements. ) also contributes a 1.98% boost in EAC’s export performance if there is a 10% increase in mobile phone subscription. Although the estimated value of global B2C (US$1.2 trillion) in 2013 is considerably smaller than B2B (US$15 trillion), the B2C sector experienced much more rapid growth due to increasing use of the Internet, the emergence of specialised online shops, and global integration of trade (UNCTAD 2015). The main result of the study is that the increase in ICT/e-commerce … Addison Wesley Publishing, London, Kauffman RJ, Walden EA (2001) Economics and electronic commerce: survey and directions for research. i Bilateral trade flows between the South and North are significantly influenced by the level of Internet penetration, of B2B and B2C Internet adoptions, and number of broadband subscriptions and secured servers. The MIT Press, London, World Bank (WB) (2016) World development report 2016: digital dividends. ij (2013). Retrieved from http://www.Jstor.Org/Stable/40436776?seq=1#page_scan_tab_contents, Solow RM (1956) A contribution to the theory of economic growth. The prospective for the growth of e-commerce in the developing countries is very high but ICT being the precondition, lack of ICT infrastructure hampers the rate of its growth. Rev Int Econ 14(1):54–68, Thangavelu SM, Rajaguru G (2004) Is there an export or import-led productivity growth in rapidly developing Asian countries? ICT has made a huge impact on the day to day lives of society especially the use of the World Wide Web, as it allows us to be kept informed on a range of issues; and also allows us to communicate with one another without using e-mail without any difficulty. Questionnaires were distributed to the respondents in the form of an online and self-administered questionnaire. For instance, using cross-sectional time series data for 60 countries over 13 years, Hardy (1980) found that the usage of telephones per capita promotes growth in GDP per capita a year later. On the one hand, a country’s technology infrastructure plays a critical role in creating a nurturing environment for ICT evolvement and adoption. At the same time, digital payment services are becoming more important and various online marketplaces are spreading” (UNCTAD 2015, p.25). E-commerce has a significant impact on business costs and productivity. The impact of e-commerce on business activity Selling through websites is the fastest growing method of trading worldwide. They are: Brazil, Brunei, Burundi, Cambodia, China, India, Indonesia, Kenya, Malaysia, Myanmar, Nepal, Pakistan, Philippines, Russia, Rwanda, Sri Lanka, South Africa, Thailand, Tanzania, Uganda, and Vietnam. This study aims to identify the level of E-business usage as well as the benefits and barriers of E-business adoption in hospitality operation sustainability among local tourism agencies operating in Melaka. Elsevier, Amsterdam, Lejarraga, I., & Shepherd, B. Tang (2006) investigates how the usage of different means of telecommunications affects US imports of differentiated goods from 1975 to 2000. As per EAC-to-ROW, the coefficients of B2B and B2C Internet usage are positive but not statistically significant, implying a need for further e-commerce development in the EAC region. The cost of. Hence, electronic, This article is concerned with whether or not a consumer who engages directly with a foreign vendor in an international consumer transaction (ICT), via the Internet or otherwise, has any cost-effective means of redress in the event of non-deliver or wrong-deliver of goods by a vendor, where the vendor falls to perform for any reason other than non-performance by the consumer. This will involve arranging workshops on organisational and management issues for exporters and producers. World Development Report 2016 (World Bank. IAMAI, 2013] Internet and Mobile Association of India (IAMAI) and IMRB International report, 2013. She finds that the Internet usage by business communities in both exporting and importing country has a positive link with the export flows between these countries. j ICT and e-commerce are inseparable terms as the e-commerce industry is absolutely dependent on ICT for its operations and intensification. and Y the impact of ICT/e-commerce activities on industry performance measured as employment and labour productivity growth. It is possible to suggest that most of exporters/producers/enterprises and consumers in the Global North already have greater access to the Internet, and are equipped with greater skillsets in conducting business online (i.e., B2B, B2C and C2C), whereas being able to connect with reliable IT networks present a greater trade advantage if the exporters/producers in the Global South are aiming to sell their products online to developed countries. In a companion paper, Freund and Weinhold (2004) further examine the role of Internet adoption in bilateral trade flows in goods. It is worth noting that while the variables of ICT and e-commerce Internet usage underscore a significant effect on South-to-North trade flows, no significant relationship is found from North-to-South, except for mobile phone subscriptions (see Column 3 in Table 4). E-commerce facilitates the fundamental movement of goods from suppliers to customers. is the business-to-business readiness indices as measured on a 1-to-7 (best) scale for the country i and country j, B2B is formulated in the same way as in equation (a). This study shows that government aims of E-business tourism have not been fully realized the benefit. E-commerce has altered the workflow of the business. The effect of the coronavirus (COVID-19) pandemic on our capacity means we have reviewed the existing annual releases and will be suspending some publications. Q J Econ 123(2):441–487, International Telecommunication Union (ITC) (2015) ICT facts and figures Retrieved from https://www.itu.int/en/ITU-D/Statistics/Pages/facts/default.aspx, Kalakota R, Whinston AB (1996) Electronic commerce: a manager’s guide. View previous releases . have a positive and significant effect on trade flows between country i and country j, while traders either in the Global South or in the EAC countries particularly benefited from availability of high-speed Internet and secured servers. Yushkova (2014) uses the business Internet usage index to estimate the effect of the Internet on total exports of goods in 2011 for 40 countries (OECD countries plus Brazil, China, India, Indonesia, Russia and South Africa). E-commerce and ICT activity, UK: 2018. Factors affecting the usage of E-business in the tourism industry have been well-documented in developed countries, but further studies are needed to investigate the usage of E-business in the tourism industry among developing countries. doi:10.1787/5k450q9v2mg5-en, Liu L, Nath HK (2013) Information and communications technology and trade in emerging market economies. OECD Trade Policy Papers, No. The findings are consistent with the general consensus that internet expansion promotes international trade and reduces communication and transaction costs with the aid of more efficient logistics and warehousing (Venables 2001; Freund and Weinhold 2004; Clarke and Wallsten 2006; Liu and Nath 2013). As the main point of focus in this study, the significant linkages are found between the extent of importing and exporting countries for e-commerce Internet usage and exports of goods from country i to country j, with the estimated coefficients of 0.0683 (B2B is an interaction term represents the extent of business-to-consumer use in country i and country j; Apart from non-technology variables as suggested in the literature of gravity model of trade, Eq. They find that a 10-percentage point increase in the adoption of Internet leads to a 0.2 percentage point increase in trade in goods. 3. (3). Many people only see in eBusiness the selling and marketing of products and services via the Internet. The impact\effects of e-commerce 1. The descriptive statistics for the explanatory variables are presented in Table 2. is the business-to-consumer readiness indices as measured on a 1-to-7 (best) scale for the country i and country j, B2C is formulated in the same way as in equation (a). The above table and graph illustrates that the respond, security factors. The EAC includes: Burundi, Kenya, Rwanda, Tanzania, and Uganda. Baba Ghulam Shah Badshah University, Rajouri, J & K, E-Commerce and ICT Landscape In Urban and Rural India. In 1821, Ricardo introduced the theory of comparative advantage, which explained why it is beneficial for two countries to trade, even though one of them may be able to produce both goods or services more cheaply than the other. Indeed, as identified by UNCTAD (2015), p.25), the major barriers for adopting e-commerce effectively in Africa “remain in areas such as transport and logistics, inadequate legal frameworks, and limited purchasing power”. Many countries are poorly prepared.One striking way that digitalization is impacting our economies is through growth in e-commerce. 5 Strategic orientation and performance of internet-based businesses In: Bernanke BS, Rotemberg J (eds) National Bureau of economic research (NBER) macroeconomics annual 1997. The impacts of Information and Communications Technology (ICT) and E-commerce on bilateral trade flows. Therefore, future research is recommended to provide more insights into the application of E-business tourism in tandem with the government aim of the hospitality operations sustainability Malaysian tourism industry. The ultimatum from e-commerce is extreme for all the traditional old school businesses who are not willing to accept the changing business landscape. For instance, the International Telecommunication Union (ITC) (2015) estimates about 4 billion people from developing countries remain offline, and only 89 million people living in the LDCs use the Internet. - 184.108.40.206. Although the growth of internet access is widely acknowledged, it imposes numerous integration challenges for developing countries and Least Developed Countries (LDCs) to participate in this e-trade mode. The regional development in the B2C e-commerce segment also differs considerably. Correspondence to It reduces transaction costs; allocates recourses better; increases economies of scale; improves the competitiveness of business in general; increases efficiency; generates important changes in the management and production processes of business. The findings are consistent with other gravity-approach studies in explaining bilateral trade variations, which suggest that higher purchasing power with relatively larger market size lead to a higher demand for importing goods between trading countries (see Hans 1966; Deardorff 1995). A key feature of the empirical analysis is the use of several types of advanced ICT activities, such as enterprise resource planning (ERP) systems, mobile internet access, and e-commerce practices. Given the East African Community (EAC)Footnote 1 member states’ commitment in transformation of their economies with export-led growth, the study further analyses the nexus between the EAC’s export performance and different means of ICT and e-commerce adoptions. Column 1 presents full sample estimation of ICT-bilateral trade nexus followed by South-to-North (column 2), North-to-South (column 3), and EAC-to-ROW (column 4). ij Am Econ Rev 92(2):236–240, Freund C, Weinhold D (2004) The effect of the internet on international trade. For developing and least-developed countries, earnings from exporting their goods and services to the Global North are considered as a vital source of foreign exchange that ease the pressure on the balance of payments and create employment opportunities (Thangavelu and Rajaguru 2004). Productivity Slowdown and the Role of ICT in Italy: A Firm-Level Analysis 261 Chapter 13. ... distribution as a detailed discussion of the impact of ICT developments on the overall supply chain is beyond the scope of this paper. Section 3 discusses the data, methodology and model specifications utilised in analyses of various ITC and e-commerce variables noted above. E-Commerce has a chance to be widely adopted due to its simple applications. ) between i and j. This study find out nine factors which ecommerce affects economic growth as a result of the The empirical results indicate that better access to the modern ICT and e-commerce applications boost bilateral trade flows among the different regression groups (i.e., Full Sample, South-to-North and EAC-to-ROW). 7 CHAPTER 1 INTRODUCTION AND SUMMARY Dirk Pilat1 Organisation for Economic Co-operation and Development Abstract This … Date Written: September 3, 2012. ) and country j (lnGDPPC The empirical results obtained in this study highlight a great potential of e-commerce for developing- and least-developing countries. j portals offer the platform to sell and purchase the used articles like electronics, vehicles, Customers can use this facility for online bill paym, Banks facilitate E-commerce by providing the most vital trade instrument, namely t, Debit Card these help the customers to pay. Initially, such arrangements were perhaps justified because Safaricom incurred high costs developing the system. Vemuri and Siddiqi (2009) analyse the effect of ICT infrastructure and internet penetration on international trade for a panel of 64 countries between 1985 and 2005. The further research areas in ecommerce are; the quality of sponsored ad text, ad positio. Firstly, the need to overcome infrastructural bottlenecks in telecommunications and transport system must be addressed prior to unlocking the potential of e-commerce for the bloc. At the national level, the internet-based export development among EAC member states should focused on two main areas: 1) infrastructure and logistics; and 2) capacity building and training. Hence, the evolution of ICT usage comes closer to electronic business networking— “the use of ICT to forge closer and more interactive and InternetSecurity The effects are sometimes dramatic in developed countries. The value of total exports of goods from country set (i) to country set (j) is obtained from the OECD STAN Bilateral Trade Database. Footnote 5 The subsamples group of EAC-to-Rest of the World represents the bilateral trade between EAC member countries and their counterparts, while the South-to-North subgroup implies trade directions from countries considered as the global south economies to countries that are referred to as the global north economies. Email. This research is meant to answer and study the following questions in regard to exceptional cases and for different situations, financial management, rules and regulations and some of problems and special cases: • Why Prepare SME's in Developing Countries for E-Commerce • Putting SME E-Commerce Readiness in Context • E-Commerce Readiness: What SME's Need to Know. Int J Electron Commer 1(1):3–23, Lincoln International Business School, University of Lincoln, Brayford Pool, Lincoln, Lincolnshire, LN6 7TS, UK, You can also search for this author in In this market, a growing number of specialised e-commerce firms such as Alibaba (China), Amazon (USA), eBay (USA), Rakuten (Japan), and TradeMe (New Zealand) act as intermediaries allowing individuals to sell new and used goods. What is E-Commerce E-Commerce has become a very popular method of trading amongst businesses and organizations. The factor of saving time (M = 4.3492) was the key benefit in E-business usage while the factor of hackers' intervention (M = 3.8730) was revealed to be the most deterring factor that causes the tourism agencies reluctance to adopt E-business practice. The findings of these studies suggest that ICT has contributed greatly to produc-tivity growth and competitiveness in the OECD countries in the last decade. ij http://www.newtimes.co.rw/section/article/2010-01-15/15692/, Anderson JE (1979) A theoretical foundation for the gravity equation. With its introduction, E-commerce has a significant impact on society and business at a global level. Cloud Computing. Across columns 1 to 4, the relative market size (lnMarketSize Effects of e-commerce on businesses High street stores now find themselves competing with each other for business both on the high street and online. This creates both opportunities and challenges, calling for changes to existing policies and adoption of new policies in many areas. and Colony Government and the associated agencies can help fill this gap by establishing an e-commerce specific information centre to assist exporters and producers or individuals who are interested in global e-commerce participation. The coefficients of ICT variables (i.e., Telephone & Cellphone) in columns 1 and 2 are positive and significant, indicating that two-way telecommunications between exporters and importers with good ICT facilities benefit both trading partners. The main result of the study is that the increase in ICT/e-commerce activities over time has not led to a … This study aims to identify the level of E-business usage as well as the benefits and barriers of E-business adoption in hospitality operation sustainability among local tourism agencies operating in Melaka. Based on the Newtown’s law of universal gravitation, the basic form of gravity model can be express as: Equation 1 implies that a mass of goods or services (M ij 1.2. Econ Lett 66(1):25–31, Egger P, Lassman A (2012) The language effect in international trade: a meta-analysis. The EAC-to-Rest of the World indicates the total amount of final goods the EAC member countries exported to the rest of sample countries. Thus it has a large economic impact. Mobile phone penetration (Cellphone For instance, Freund and Weinhold (2004) find that growth of the number of internet hosts by 10 percentage points boosts a country’s exports by 0.2 percentage points, while Clarke and Wallsten (2006) indicate that a higher internet penetration rate in developing economies improves export performance from developing economies to developed economies. This article is published with open access at Springerlink.com Abstract This study examines the impact of Internet and e-commerce … Students are getting benefits from ICT. Butterworths, Durban, Aw BY, Hwang AR (1995) Productivity and the export market: a firm-level analysis. 1996; Klenow and Rodriguez-Clare 1997; Hall and Jones 1999). PubMed Google Scholar. See Egger (2000) for the random- and fixed-effects model specifications. These trends, in … Small and Medium-sized Enterprises (SME's) in developing countries need to be able to figure out how, when, if and where to use electronic commerce techniques to reap these gains. But we should make sure to they get the proper use of the internet and other communication tools. Michael E. Porter′ value chain model will be used to provide a general idea about value chains within an organization. Moreover, the paper investigates whether a common set of economic and social policy measures is effective in improving several indicators of digital economy, in the New Member States (NMS) as well as in the Old Member States (OMS), given that they still exhibit different patterns of digital transformation at regional level. The study notes that the efficient use of ICT equipped with highspeed internet and secured servers is a crucial milestone for unlocking the e-trade potentials for developing- and least-developed counties. litigation and all other existing forms of ICT redress are not cost-effective: in the best case, redress would cost more than the value of most lCTs, even those worth tens of thousands of dollars. Data on the use of information and communication technologies (ICT) in enterprises and e-commerce is used to obtain qualitative and internationally comparable statistical information on the use of ICT (computers, Internet, web-page ect) in enterprises and development of e-commerce … Trends in India's e-Commerce Market: Report provided by Forrestor Research for ASSOCAM E-Commerce or Internet Marketing: A Business Review from Indian Context, International Journal of u-and e-Service. In the nexus of e-commerce and EAC export performance, the empirical findings suggest that having a reliable and un-interrupted Internet connectivity and encouraging greater use of digital technologies in the region is a prerequisite for unlocking the e-trade potentials for the EAC countries to compete in the global trade. By Angela Scott-Briggs. As per Forbes Insights, 40% of marketing executives report that personalization has a direct impact on maximizing sales, basket size and profits in direct-to-consumer channels like e-commerce, while another 37% point to increased sales and customer lifetime value through product or content recommendations. Based on Eq. The next section discusses data and variable definitions, methodology and model specification. Economic Record 32(2):334–361, Tang L (2006) Communication costs and trade of differentiated goods. i Electronic Commerce provides the capability of buying and selling products and information on the internet and other on-line service. is expected to occur in the next decades. Share. J Econ Growth 1(3):363–89. i This has had many positi The magnitude of shipping cost effects on bi-directional trade varies among the different estimation groups. Automation, Cloud based server, Cognitive computation, and intelligence augmentation are some of the ICT implementations in the company. Effects of e-commerce on businesses High street stores now find themselves competing with each other for business both on the high street and online. ) has an expected sign but statistically insignificant in the full sample estimation, although one would expect countries with a common border would trade more. And one to be taken seriously. (as a proxy for internet penetration between the trading countries) is positive and significant across the estimation groups except for the North-to-South trade direction. J Econ Lit 42(3):691–751, Article World Economic Forum: Retrieved from http://www3.weforum.org/docs/WEF_Global_IT_Report_2015.pdf, Egger P (2000) A note on the proper econometric specification of the gravity equation. The main part of this work addresses the importance of the whole value chain and defined business processes within an organization. and InternetUser Am Econ Rev 69(1):106–116, Anderson JE, van Wincoop E (2003) Trade costs. Other associated macroeconomic variables are for the year 2013 (see Table 1). All figure content in this area was uploaded by Tasleem Arif, All content in this area was uploaded by Tasleem Arif on Dec 21, 2015, National Conference on Recent Innovations, Technology continues to be a transformative force, and other developing economies. e-commerce is also referred to as application of ICT in business and commerce. So it is important for teachers and parents to take an eye on them regularly. ij Drawn from the literature on bilateral trade (Tinbergen 1962; McCallum 1995; Lejarraga and Shepherd 2013), explanatory variables such as the relative size of economies, GDP per capita, geographical distance between trade partners, common border, common language, and former colonial link are included in the present analysis. CEPPII Gravity Dataset. As the coefficients of BroadBand There are various definitions of e-commerce in the literature. E-commerce is an outcome in network economy. The B2B commerce consists of a wide range of inter-company transactions, including wholesale trade and trade in intermediate goods and services. Share. Telecommun Policy 4(4):278–286, Helpman E, Melitz M, Rubinstein Y (2008) Estimating trade flows: trading partners and trading volumes. As the development of ICT infrastructure represents a pre-condition for the e-commerce growth, E-Business: Scope and challenges in India. Economic Journal 74:388–409, Organisation for Economic Cooperation and Development (OECD) (2009) Guide to measuring the information society. e-commerce is also referred to as application of ICT in business and commerce. manufacturer and consumer or retailer and consumer. For SMEs in developing countries Ecommerce poses the advantages of reduced information search costs and transactions cost. Digital technology played a significant role in shifting the tourism sector into an impact driven industry. The ImpactEffects of e-Commerce on Society By:Kalpa N R 2. Internet and Mobile Association of India (IAMAI) and IMRB International report. The impact that tech-savvy customers are having on the ecommerce world is not just stronger than ever; it's faster than ever: Gone are the days … Since then, vast studies on developing and least-developing countries have long focused on how international trade can best contribute a country’s overall economic growth and reasons for countries to participate in global trade (see Krugman et al. Information technology has had a major impact on various aspects of businesses. The articles included here may include various methodologies used for extra, In just 15 years since it was launched commercially, the Internet has changed the everyday behavior of consumers and the business strategies of many producers. Data may be relevant to their products and services to consumers section 4 the... 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