Cross-Border E-Commerce and Small Medium Enterprises (SMEs)

Cross-Border E-Commerce and Small Medium Enterprises (SMEs)

Muhammad Anshari, Mohammad Nabil Almunawar, Syamimi Ariff Lim
Copyright: © 2021 |Pages: 12
DOI: 10.4018/978-1-7998-5823-2.ch012
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Abstract

The emergence of cross-border e-commerce (CBE) has its relevance in this digital age and thus brings about the discussion regarding the challenges and potentials of CBE on the local business especially small medium enterprises (SMEs). The wide availability of technology has made CBE possible across geographical, political, and cultural borders. It is a new driving force to promote the upgrading of industrial structure. The method used throughout the research is independent reviews from various studies and articles. Despite the dynamic development of CBE, communication in other languages, the form of payment, currency, legal, and tax conditions, as well as the delivery of products remain barriers to the CBE. The findings of the study show that there are four major drivers affecting CBE performance. These are economics, politics and policies, socio-cultural, and technology.
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2. E-Commerce And Cross Border E-Commerce

Since the users and applications expand and diversify internationally as the Internet evolves. There has been a steady increase in the number of Internet users around the world and this development has provided the impetus and incentives for global e-commerce. There are 4.1 billion Internet users in the world as of December 2018. This is contrasted with 3.9 billion Internet clients in mid-2018 and about 3.7 billion Internet clients in late 2017 (Internet World Statistic, 2018). Globally the number of Internet users rose from just 413 million in 2000 to over 3.4 billion in 2016 (Roser et. al., 2020). Furthermore, the Internet has changed marketing, advertising, and promotional practices. The literature describes the Internet as an essential part of the process of development (Kole, 2000). It means that E-commerce was about $3.45 trillion in deals in 2019 (hostingfacts, 2018). E-commerce is the fastest-growing area in the digital economy, which shortens the distance between buyers and sellers. When online deals and transactions are conducted in different areas or countries by using information and communication technology (ICT), it is called cross-border e-commerce (CBEC). This paper focuses on the challenges and potentials of CBEC.

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