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E-Commerce Readiness: Institutional Environment and International Competitiveness

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  • 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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