Identifying Factors for Lack of E-Commerce in Developing Countries

Identifying Factors for Lack of E-Commerce in Developing Countries

Sushil K. Sharma (Ball State University, USA) and Jatinder N.D. Gupta (University of Alabama in Huntsville, USA)
Copyright: © 2009 |Pages: 19
DOI: 10.4018/978-1-60566-100-1.ch003
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The past few years have seen a rise in the number of companies’ embracing e-commerce technologies in developing countries and the volume of e-commerce has been growing. However, as compared to developed nations, developing countries still have been lacking in e-commerce. This chapter identifies some of the reasons that may be responsible for lack of e-commerce in developing countries. For the scope of the study, we have limited developing countries to China, India, Indonesia, Philippines and Sri Lanka. The study identifies factors at the macro level to understand why the adoption of e-commerce in developing countries has been not taking off as expected.
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A Framework For E-Commerce Infrastructure

The emergence of electronic commerce over the past decade has radically transformed the economic landscape. There has been an increasing amount of literature on the factors that affect development of the Internet and e-commerce in developing countries. On one hand, it is helping nations increase their economic growth and thereby provide more opportunities for the businesses to grow, but on the other hand it raises many technological, economic, and social challenges. While developed countries that have been offering e-commerce have shown impressive performance in their respective economies, many developing countries still lag behind in the e-business race. This could be due to several reasons including but not limited to language, education, technology and technical infrastructure.

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