Cultural Differences, Information Technology Infrastructure, and E-Commerce Behavior: Implications for Developing Countries

Cultural Differences, Information Technology Infrastructure, and E-Commerce Behavior: Implications for Developing Countries

Ahu Genis-Gruber (TOBB University of Economics and Technology Ankara, Turkey)
Copyright: © 2009 |Pages: 20
DOI: 10.4018/978-1-60566-100-1.ch010
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E-commerce has been a widely used mean to purchase goods and services all over the world. This study investigates the role of cultural differences and information technology infrastructure on usage of e-commerce in developed and developing countries. As shown in Genis-Gruber and Tas (2007) cultural differences are expected to play a major role on e-commerce behavior especially in developing economies. In order to identify cultural differences, we use Hofstede’s classification. We classify the countries according to these indices and their technological and economic development. We make several cultural comparisons among various countries and we empirically investigate whether these cultural differences play a significant role on e-commerce behavior. We implement OLS and fixed effect regression methods. Using dummy variables and interaction variables, we estimate the effect of cultural differences on e-commerce purchases and other e-commerce variables. Besides the effects of cultural factors, we also investigate the effects of information infrastructure and education level of the countries. We conclude that cultural dimensions play an incremental role on e-commerce and relationship between infrastructure and e-commerce. We control for several other factors like information infrastructure and education level, and use different econometric techniques to achieve our results.
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In the latest era, the constant acceleration in the usage of high-speed Internet has led to a significant surge in various ways of getting goods in a limited period of time. In this sense, e-commerce, which is defined as all business activities that use Internet technologies,1 has been a widely used mean to purchase goods and services all over the world. The major increase in e-commerce usage enables people to reach the products that they want in a global environment and compare the goods and products not only in local but in global dimensions. On the companies’ sides, once a company is connected to Internet retailing, the company becomes an international company. The key factors that conduct the route of their activities are trust to sellers, cultural perception of buyers, language and infrastructure.

In the literature, trust in e-commerce activities is a challenging concept. There are several studies in the literature that show the importance of trust trait as a part of culture on e-commerce activities. Gefen (2000) stated trust as a critical factor influencing the successful rise of e-commerce. Strategy implementation in various cultures has distinctive differences. The study by Lynch and Beck (2001) present the implications and traits for successful strategies and that geographical and cultural difference should be taken into account. They show that Internet buying behavior shows differences depending on user experience, home country and region. Trust is a fundamental part of culture that influences the usage of e-commerce. Grabner-Kraeuter (2002) presents that trust is the long-term barrier for realizing the potential of e-commerce to customers. Teo and Liu (2005) indicate the importance of trust for online purchases. Gefen and Heart (2006) empirically investigate whether the effects of predictability and familiarity on trust beliefs differ across national cultures and conclude that trust beliefs differ across national culture. In this study, trust and trust beliefs, trustworthiness, in U.S. and Israel and conclude that trust beliefs differ across national culture are further analyzed. Trust, by Alm and Melnik (2006) is stated as a dependent on the personal reputation and image of the party, which is one of the critical and vital factors for e-commerce success. Efendioglu (2005) states in his paper that in e-commerce transactions, trust extends beyond the buyer and seller to institutions including online payment firms, banks, credit card companies and the Internet provider. Whereas Cheng (2006) shows that, parties loose trust when the exchange relationship by collecting irrelevant information of the other party without informing them, exploits. Knezevic (2006) mentions in their paper that the restrictions for e-commerce improvement are basically the perceptions about e-commerce in the culture. Wu and Chang (2006) state the importance of transaction trust on e-commerce. Genis-Gruber and Onur (2006) show that trust, as a proxy for culture, affects Internet retailing. Schneider (2007) mentions the importance of trust generation in order to compete with traditional retail sales. Goldstein and O’Connor (2001) mention the importance of virtual trust for online transactions.

Complete Chapter List

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List of Reviewers
Table of Contents
Omar A. El Sawy
Chapter 1
Richard Boateng, Alemayehu Molla, Richard Heeks
This chapter undertakes a meta-analysis of the published literature on e-commerce in developing economies (DEs). The aim is to take stock of the... Sample PDF
E-Commerce in Developing Economies: A Review of Theoretical Frameworks and Approaches
Chapter 2
Reinhold Decker
This chapter outlines and discusses current empirical findings and conceptual ideas concerning the status quo and future prospects of e-commerce in... Sample PDF
Significance and Success Factors of E-Commerce in China and Russia: An Empirical View
Chapter 3
Sushil K. Sharma, Jatinder N.D. Gupta
The past few years have seen a rise in the number of companies’ embracing e-commerce technologies in developing countries and the volume of... Sample PDF
Identifying Factors for Lack of E-Commerce in Developing Countries
Chapter 4
Antonis C. Stylianou, Stephanie S. Robbins, Pamela Jackson
It is widely recognized that e-commerce represents a critical resource for most business organizations. With over 1.3 billion people and... Sample PDF
E-Commerce Development in China: An Exploration of Perceptions and Attitudes
Chapter 5
Mahesha Kapurubandara
Acceptance of the Internet has paved the way towards the development of virtual communities that keep increasing in the current information society... Sample PDF
E-Commerce Adoption and Appropriation by SMEs in Sri Lanka
Chapter 6
Alev M. Efendioglu
The number of Internet users around the world has been steadily growing and this growth has provided the impetus and the opportunities for global... Sample PDF
E-Commerce in Developing Countries: Impediments and Opportunities
Chapter 7
Victor van Reijswoud, Arjan de Jager
E-governance is a powerful tool for bringing about change to government processes in the developing world. It operates at the crossroads between... Sample PDF
E-Governance in Uganda: Experiences and Lessons Learned from the DistrictNet Programme
Chapter 8
Abdelbaset Rabaiah
This chapter illustrates the impact of electronic government (e-government) on electronic commerce (e-commerce) development and implementation in... Sample PDF
E-Government and Its Impact on E-Commerce in LDCs
Chapter 9
Zakariya Belkhamza
Global deployment in information and communication technology requires understandings of the cultural constraints in technology acceptance and usage... Sample PDF
Cultural Interpretation of E-Commerce Acceptance in Developing Countries: Empirical Evidence from Malaysia and Algeria
Chapter 10
Ahu Genis-Gruber
E-commerce has been a widely used mean to purchase goods and services all over the world. This study investigates the role of cultural differences... Sample PDF
Cultural Differences, Information Technology Infrastructure, and E-Commerce Behavior: Implications for Developing Countries
Chapter 11
Kamel Rouibah
With the widespread use of mobile phones in the Arab world, companies, including banks, are offering different communication channels for their... Sample PDF
Mobile-Commerce Intention to Use via SMS: The Case of Kuwait
Chapter 12
Ayoub Yousefi
This study presents a theoretically-based model for economic analysis of electronic commerce in developing countries. The Porter diamond model is... Sample PDF
An Economic Framework for the Assessment of E-Commerce in Developing Countries
Chapter 13
Lena Aggestam
B2B development has been faster in the developed world comparing to developing countries. This chapter proposes a “tool” for managing CSF in B2B... Sample PDF
Guidelines for Preparing Organizations in Developing Countries for Standards-Based B2B
Chapter 14
Dimitrios Xanthidis, David Nicholas, Paris Argyrides
This chapter is the result of a two years effort to design a template aiming at standardizing, as much as such a task is feasible, the evaluation of... Sample PDF
A Proposed Template for the Evaluation of Web Design Strategies
Chapter 15
Jameleddine Ziadi, Abderrazzak Ben Salah
This chapter has as an aim the identification of the present reality of the e-commerce activity in Tunisia and the challenges its faces. After... Sample PDF
Electronic Commerce Reality in Tunisia
Chapter 16
Hongxiu Li
This chapter introduces the four sets of prerequisites for successful electronic commerce (e-commerce) development, including national factors... Sample PDF
Electronic Commerce in China: Can We Wake Up the Giant?
Chapter 17
Sherif Kamel
Emerging information and communication technology is driving transformation and change in the cyberspace. Speed, competition and globalization are... Sample PDF
Evolution of Electronic Procurement in Egypt: Case of
Chapter 18
Borislav Jošanov, Marijana Vidas-Bubanja, Emilija Vuksanovic, Ejub Kajan, Bob Travica
The authors of this chapter constructed and published multidimensional model for the evaluation of e-commerce diffusion in any country. According to... Sample PDF
The State and Development of E-Commerce in Serbia
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