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Does e-commerce fulfil its promise for developing country (South African) garment export producers?

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  • Sagren Moodley
  • Mike Morris

Abstract

The adoption of e-commerce applications is promoted in the developing world as a systemic innovation offering producer firms new exchange mechanisms that enable them to compete on a more equal basis in world markets. It promises a radical shift in the way in which international buyers and sellers trade with one another. Empirical evidence obtained from researching leading garment exporting firms in South Africa suggests that B2B e-commerce is not as effective in reducing transaction costs or in opening up new global market opportunities as claimed by the “optimists”. It has only marginally altered trading and business patterns between international buyers and sellers in the garment industry. The findings indicate that trading relationships in this sector are fostered over extended periods of time, depend on non-contract based activities and on complex information requirements and tend to be highly personalized. If B2B e-commerce implementation is to become more widespread, much greater attention will need to be given to the tight and complex interdependencies between buyers and sellers, technological opportunities and constraints, related institutional issues, and the specific characteristics and positioning of South African garment producers within global value chains.

Suggested Citation

  • Sagren Moodley & Mike Morris, 2004. "Does e-commerce fulfil its promise for developing country (South African) garment export producers?," Oxford Development Studies, Taylor & Francis Journals, vol. 32(2), pages 155-178.
    • Handle: RePEc:taf:oxdevs:v:32:y:2004:i:2:p:155-178
    DOI: 10.1080/13600810410001699939
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    References listed on IDEAS

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    1. Oecd, 2002. "Access for Business," OECD Digital Economy Papers 67, OECD Publishing.
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    Cited by:

    1. Adah-Kole Emmanuel Onjewu & Sundas Hussain & Mohamed Yacine Haddoud, 2022. "The Interplay of E-commerce, Resilience and Exports in the Context of COVID-19," Information Systems Frontiers, Springer, vol. 24(4), pages 1209-1221, August.
    2. Hani Hamed Al-Dmour, 2018. "A Conceptual Framework for Determinants of E-Exporting (Marketing Applications) Practices and the Business Performance: Empirical Study," Modern Applied Science, Canadian Center of Science and Education, vol. 12(11), pages 358-358, November.
    3. Sharma, Dheeraj & Pandey, S.K. & Chandwani, Rajesh & Pandey, Peeyush & Joseph, Rojers, 2018. "Internet Channel Cannibalization and its influence on salesperson performance outcomes in an emerging economy context," Journal of Retailing and Consumer Services, Elsevier, vol. 45(C), pages 179-189.
    4. Abubakar Sambo Junaidu, 2012. "Facilitating Factors and Export Performance of SMEs in the Nigerian Leather Industry," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 2(4), pages 153-161, October.
    5. Yong Qin & Yingfeng Fang, 2022. "The Effects of E‐Commerce on Regional Poverty Reduction: Evidence from China's Rural E‐Commerce Demonstration County Program," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 30(3), pages 161-186, May.

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