Cross-national heterogeneity in e-retail spending: a longitudinal analysis of economic, technological and political forces

Abstract

Purpose: This paper examines the technological, market, industry and institutional sources associated with the cross-national heterogeneity in e-retail spending.Design/methodology/approach: We used time series cross sectional (TSCS) models linear in parameters for 10 year data from 43 countries to test our hypotheses.Findings: We found that how broadband Internet is accessed, identified as an important determinant of an economy's "e-readiness", explains international heterogeneity in e-retail spending. We also found various specific attributes of the traditional retail environment that produce enhancing effects as well as suppressing effects for e-retail spending. Finally, we also found regulatory forces' impacts on the development of the e-retail industry.Research limitations/implications: Due to the unavailability of reputable data, we could not include many economies at the bottommost of the global economic pyramid.Originality/value: To our knowledge, this is the first study focusing on cross-national heterogeneity in e-retailing in a range of economies. We used the economic theory of complementarities as the theoretical framework. We identified various activities and resources in the e-retail ecosystems that may produce positive and negative synergies in the development of the e-retail industry.

Exploring the Structural Conditions Shaping Business-to-Consumer Electronic Commerce

“…Kshetri et al [26] relied on 10 year panel data from 43 countries and, controlling for GDP per capita, found that consumer propensity to spend on store-based retailing was positive for e-commerce along with broadband. Akhter [27] examined e-commerce expenditure in 43 countries and showed per capita ecommerce expenditure was largely influenced by telecommunications investment and gross national income per capita.…”

“…[20,23]), others conclude that institutional structures were most relevant (e.g. [24]), while still others point to the salience of socio-economic phenomena [25] and consumer behaviours [26]. In addition, most prior empirical studies considered e-commerce expenditure normalised by GDP, rather than as a proportion of retail.…”

“…Economic freedom: Regulatory or trade restrictions introduce barriers for e-commerce growth by making the country a more costly and less attractive location for production and private investment. Higher required levels of investment for start-ups will have a suppressing effect on e-commerce growth while ease of setting up an e-commerce business will have an enhancing effect [26].…”

“…Urbanisation creates a legacy of efficient, convenient traditional retail channels for consumers [20], which may reduce their need or desire for the benefit of online shopping. The availability of retail stores brought about by higher density and urbanisation may act to reduce e-commerce spending due to crosschannel substitution effects and a reduction in the relative convenience of e-commerce to consumers [26].…”

Drivers of Cross-National Variation in Advertising Spending: A Longitudinal Analysis of the Effects of Freedom and Foreign Direct Investment

“…Prior researchers have used Euromonitor data in a number of studies (e.g., Blecher, 2010;Coulter et al, 2003;Kshetri et al, 2007;Kopf et al, 2011;Kshetri and Bebenroth, 2012;Kshetri et al, 2014).…”