Infrastructural Drivers of Online Shopping: An International Perspective

Infrastructural Drivers of Online Shopping: An International Perspective

Syed Akhter (Marquette University, Milwaukee, WI, USA)
Copyright: © 2017 |Pages: 12
DOI: 10.4018/IJOM.2017070103
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Abstract

While online shopping expenditures have been increasing in both developed and developing economies, they still account for a small share of total retail sales. Significant differences also exist across countries in the amount of money consumers spend on a per capita basis on online purchases. The authors utilize the conceptual foundations of infrastructural framework to examine the effects of infrastructural drivers on online shopping expenditures in 43 countries. Findings show that per capita telecommunications investments and per capita gross national income are significantly associated with per capita online shopping expenditures. Privacy protection, Internet penetration, and credit card penetration were not significant.
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2. Theoretical Frameworks

Existing research has delineated the linkages between infrastructural conditions and online transactions. Travica (2002), for example, conducted a field investigation to determine how infrastructural factors affect the diffusion of e-commerce. Interview and observation data showed that economic, telecommunications, and cultural factors favorably affect the potential for e-commerce. Simon (2004) also identified communication infrastructure and legal and societal factors such as privacy protection as critical success factors for facilitating electronic commerce in developing countries. Das et al. (2014) explored the effects of economic, legal/regulatory, and technological factors on music piracy and found that the primary factors that affect online piracy in a country are its economic status and regulatory status.

Sheth and Sharma (2005) classified countries based on their infrastructural development and proposed that the level of development in telecommunications and legislative bodies would affect e-marketing activities as well as consumer behavior. And Lawrence and Tar (2010) noted that underdeveloped states of telecommunications infrastructure, credit systems, and income would act as barriers to e-commerce activities in developing countries. In a recent report, the Euromonitor also emphasized the importance of developing adequate telecommunications and financial infrastructures to promote online shopping (Euromonitor International, 2012).

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