Factors Influencing Growth Potential of E-Commerce in Emerging Economies: An Institution-Based N-OLI Framework and Research Propositions

Abstract

Given the tremendous success of the Internet and e‐commerce in developed countries, emerging economies are quickly embracing information technology as well. The purpose of this study is to examine factors (both determinants and deterrents) influencing the growth potential of e‐commerce in emerging economies from a multitheoretical perspective (namely, institution‐based network‐ownership, location, and internalization, i.e., i‐based N‐OLI framework). Factors are identified at three levels. At the global level, we identify multilateral agreements, strategic behavior of multinational enterprises (MNEs), and technological innovation as the key factors. At the national level, institutional environment, infrastructure, and culture are identified. The transactional level examines the role of integrity of transactions, online intermediaries, and network externalities and value clustering as the key factors for growth of e‐commerce in emerging economies. Based on the multitheoretical framework, the study advances several propositions and highlights implications for MNEs, both from developed markets and emerging markets, operating in emerging economies. © 2015 Wiley Periodicals, Inc.

ICT, Innovation and Firm Performance: The Transition Economies Context

“…This article emphasized transition economies, which will be helpful to manage institutional constraints with international market regulations (Agarwal & Wu, ; Dana & Ramadani, , ). Local entrepreneurs can use this study, as it offers practical relevance to the pursuit of innovation strategies by considering how entrepreneurship enhances global competitiveness.…”

Information richness and trust in v-commerce: implications for services marketing

“…Electronic commerce (e-commerce) has transformed how business is conducted, how business partners interact and how information is shared between them (Agarwal & Wu, 2015). Different types of e-commerce platform abound.…”

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“…James Agarwal and Terry Wu [Agarwal, Wu, 2015] discuss importance of supranational factors such as (1) the development of free trade, (2) companies' willingness to do business in other countries, (3) information and communication innovations providing competitive advantages to companies all over the world, and (4) the development of infrastructure for international transactions and their security. The authors include government support and promotion of innovation and investments, rule of law, and the availability of the adequate technological, financial, and social infrastructure in the national-level group of factors.…”