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E-Commerce Readiness: Institutional Environment and International Competitiveness

Author

Listed:
  • Joanne E Oxley

    (University of Michigan)

  • Bernard Yeung

    (New York University)

Abstract

A systematic cross-country analysis of e-commerce activity reveals that although physical infrastructure explains much of the variation in basic Internet use, e-commerce activity also depends significantly on a supportive institutional environment. Chief among the characteristics of such an environment are national respect for the “rule of law” and, secondarily, the availability of credible payment channels such as credit cards. These results suggest that an institutional environment that facilitates the building of transactional integrity is critical to the development of e-commerce.© 2001 JIBS. Journal of International Business Studies (2001) 32, 705–723

Suggested Citation

  • Joanne E Oxley & Bernard Yeung, 2001. "E-Commerce Readiness: Institutional Environment and International Competitiveness," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 32(4), pages 705-723, December.
  • Handle: RePEc:pal:jintbs:v:32:y:2001:i:4:p:705-723
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    Cited by:

    1. Antonio R. Andrés & Voxi Amavilah & Simplice Asongu, 2016. "Linkages between Formal Institutions, ICT Adoption and Inclusive Human Development in Sub Saharan Africa," Working Papers 16/026, African Governance and Development Institute..
    2. Mona Badran, 2014. "Young people and the digital divide in Egypt: an empirical study," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 4(2), pages 223-250, December.
    3. Eric Shih & Kenneth L. Kraemer & Jason Dedrick, 2007. "Research Note: Determinants of Country-Level Investment in Information Technology," Management Science, INFORMS, vol. 53(3), pages 521-528, March.
    4. Petersen, Bent & Welch, Lawrence S., 2002. "International Business Development And The Internet, Post-Hype," Working Papers 8-2002, Copenhagen Business School, Department of International Economics and Management.
    5. repec:spr:manint:v:57:y:2017:i:3:d:10.1007_s11575-016-0287-6 is not listed on IDEAS
    6. repec:spr:manint:v:50:y:2010:i:6:d:10.1007_s11575-010-0060-1 is not listed on IDEAS
    7. Reuber, A. Rebecca & Fischer, Eileen, 2011. "International entrepreneurship in internet-enabled markets," Journal of Business Venturing, Elsevier, vol. 26(6), pages 660-679.
    8. Howard, Philip N. & Mazaheri, Nimah, 2009. "Telecommunications Reform, Internet Use and Mobile Phone Adoption in the Developing World," World Development, Elsevier, vol. 37(7), pages 1159-1169, July.
    9. repec:eee:touman:v:37:y:2013:i:c:p:1-12 is not listed on IDEAS
    10. Blum, Bernardo S. & Goldfarb, Avi, 2006. "Does the internet defy the law of gravity?," Journal of International Economics, Elsevier, vol. 70(2), pages 384-405, December.
    11. M. Rashid Malik & Rekha Prasad, 2014. "Use of e-Commerce in Carpet Industry," Knowledge Horizons - Economics, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 6(3), pages 165-168, September.
    12. World Bank, 2005. "Financing Information and Communication Infrastructure Needs in the Developing World : Public and Private Roles," World Bank Publications, The World Bank, number 7491.
    13. Kenny, Charles, 2002. "The Internet and Economic Growth in Least Developed Countries," WIDER Working Paper Series 075, World Institute for Development Economic Research (UNU-WIDER).
    14. Jia, Flora Fang & Wang, Jeff Jianfeng, 2013. "Marketing channel relationships in China: A review and integration with an institution-based perspective," Journal of Business Research, Elsevier, vol. 66(12), pages 2545-2551.
    15. Galang, Roberto Martin N., 2014. "Divergent diffusion: Understanding the interaction between institutions, firms, networks and knowledge in the international adoption of technology," Journal of World Business, Elsevier, vol. 49(4), pages 512-521.
    16. Wenjing Cai & Wei Song & ShuLiang Zhao, 2012. "Analysis of Regional Imbalance of E-commerce in China," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 2(4), pages 322-336, August.
    17. Yamin, Mohammad & Sinkovics, Rudolf R., 2006. "Online internationalisation, psychic distance reduction and the virtuality trap," International Business Review, Elsevier, vol. 15(4), pages 339-360, August.
    18. Kshetri, Nir & Dholakia, Nikhilesh, 2009. "Professional and trade associations in a nascent and formative sector of a developing economy: A case study of the NASSCOM effect on the Indian offshoring industry," Journal of International Management, Elsevier, vol. 15(2), pages 225-239, June.
    19. repec:spr:manint:v:51:y:2011:i:2:d:10.1007_s11575-011-0073-4 is not listed on IDEAS
    20. Fainshmidt, Stav & White, George O. & Cangioni, Carole, 2014. "Legal Distance, Cognitive Distance, and Conflict Resolution in International Business Intellectual Property Disputes," Journal of International Management, Elsevier, vol. 20(2), pages 188-200.
    21. Hemmert, Martin & Kim, DaeSoo & Kim, Jisun & Cho, BooYun, 2016. "Building the supplier's trust: Role of institutional forces and buyer firm practices," International Journal of Production Economics, Elsevier, vol. 180(C), pages 25-37.
    22. Kshetri, Nir, 2005. "Pattern of global cyber war and crime: A conceptual framework," Journal of International Management, Elsevier, vol. 11(4), pages 541-562, December.
    23. Qu, Wen Guang & Yang, Zhiyong & Wang, Zhongming, 2011. "Multi-level framework of open source software adoption," Journal of Business Research, Elsevier, vol. 64(9), pages 997-1003, September.
    24. Hernan G. Roxas & Val Lindsay & Nicholas Ashill & Antong Victorio, 2007. "Institutional analysis of strategic choice of micro, small, and medium enterprises : a conceptual framework," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 44(1), pages 151-186, June.

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