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.