Factors and Barriers to Adoption of E-Commerce: The Case of Developing Countries

Abstract

The Internet has revolutionized the world of business, reducing time and distance. This new tool gives access to a wealth of information and facilitate communication across the globe. It opened the door to a new aspect of trade practice called "electronic commerce", which refers to the exchange of goods and services between two entities via computer networks. This kind of transaction are been adopted by many at a sulfurous rate, affecting important sectors of the economy, such as distribution sector, the banking sector and many more. However, due to the lack of basic infrastructure, inadequate socio-economic conditions and the lack of national strategies by governments in developing countries, e-commerce lags behind.  This situation is depriving these developing countries from the benefits and contributions of e-commerce on their economy. The study shows that to understand the adoption and diffusion of e-commerce in developing countries, cultural issues must be considered. In this article, we present and discuss these issues that impede the adoption of e-commerce in developing countries.

Key words: Developing countries; E-Commerce; Mobile telephony; Middle class; obstacles

DOI: 10.7176/DCS/9-3-11

Publication date:March 31^st 2019