E-Commerce, Opportunities and Challenges: Prospectus for Developing Countries

Abstract

In developing countries, e-commerce can be a crucial tool for growth. Several authors have outlined the potential benefits of e-commerce for such countries (Moodley and Morris, 2004; Molla and Licker, 2005; Kshetri, 2007; Datta, 2011). Be that as it may, the e-commerce benefits are not known to most developing countries (Kshetri, 2007). Despite the fact that we live in the 21st century, the digital gap between developed and developing countries still remains. Large numbers of businesses and customers are connected via new platforms and social networks in this era. This growth is called social commerce which tends to be the result of a new stream in e-commerce (Hajli, 2013, 2014a; Hajli et al. , 2014) Although it is not taking place in developing countries, because they are still not using the correct e-commerce model and systems (Kshetri, 2007; Datta, 2011). Most research into developing countries is descriptive, has no clear theoretical basis (Kshetri, 2007; Datta, 2011). First of all, this study aims to understand potential barriers to e-commerce adoption in developing countries, in order to fill the current gap in the literature on e-commerce adoption in such countries. It challenges the current view of barriers, literature and models of e-commerce adoption particularly in SMEs within developing countries. The adoption of e-commerce is an important issue, particularly for the SME sector. Small businesses are one of the greatest changing divisions of e-commerce. Hence, the purpose of the study is to find a realistic framework, which can be applied in developing countries. This model needs to be investigated through an examination into current barriers to e-commerce adoption in those countries. This research attempts to provide a complex and conclusive view of opportunities and challenges that relate to the notion e-commerce. In deep details, the empirical example of developing countries, such as Armenia is going to be used, where markets are more flexible, and innovation is easier absorbed in economies that have holes to cover. In the current study, mainly qualitative research methods are going to be used, using data from existing literature, including academic articles, books, periodicals, etc. Empirical evidence from Armenia and other countries is provided by the use of public databases and resources. Statistical research methods used in the research (descriptive statistics, time series analysis, etc.) comprise quantitative basis of the research. In the 1st Chapter the literature review is going to be made, in order to provide the full and complex understanding of the concept, main similarities and differences from the authors’ point of view. In the 2nd Chapter the literature is going to be analysed and compared with the empirical evidence from Armenia as a Case Study country, so as to find the academic justification for the activities in the business world. The E-readiness Assessment based on specific indexes and ICT Environment analysis (including e-commerce revenue dynamics) has been done. In the 3rd Chapter the ways of implementation of the found solutions in the developing countries going to be discussed, with case study Armenia. Based on the experience of the countries succeeded in IT sphere we present possible development models for Armenia. The chapter ends with conclusion of the research where the theoretical and empirical evidence are going to be assessed and results briefly summarized.