Skip to main content
Log in

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

  • Published:
Electronic Commerce Research Aims and scope Submit manuscript

Abstract

This paper examines the technological, market, industry and institutional sources associated with the cross-national heterogeneity in e-retail spending. We used the economic theory of complementarities as the theoretical framework and estimated panel data models for 10 year data from 43 countries to test our hypotheses. We identified various activities and resources in the e-retail ecosystems that may produce positive or negative externalities in the development of the e-retail industry. We found that broadband Internet is an important determinant of an economy’s e-readiness in explaining 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.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Fig. 1

Similar content being viewed by others

References

  1. Allred, C. R., Smith, S. M., & Swinyard, W. R. (2006). E-shopping lovers and fearful conservatives: A market segmentation analysis. International Journal of Retail and Distribution Management, 34(4–5), 308–333.

    Google Scholar 

  2. Antonelli, C. (1993). Investment and adoption in advanced telecommunications. Journal of Economic Behavior and Organizations, 20, 227–245.

    Article  Google Scholar 

  3. Antonelli, C. (2009). The economics of innovation: From the classical legacies to the economics of complexity. Economics of Innovation & New Technology, 18(7), 611–646.

    Article  Google Scholar 

  4. Arrow, K. J. (1962). The economic implications of learning by doing. Review of Economic Studies, 29, 155–173.

    Article  Google Scholar 

  5. Barclay, D., Higgins, C., & Thompson, R. (2010). The partial least squares (PLS) approach to causal modeling: Personal computer adoption and use as an illustration. Technology Studies, 2, 285–324.

    Google Scholar 

  6. Barnes, S. J., & Pressey, A. D. (2011). Who needs cyberspace? Examining drivers of needs in Second Life, Internet Research, 21(3), 236–254.

    Google Scholar 

  7. Barua, A., & Whinston, A. B. (1998). Complementarity based decision support for managing organizational design dynamics. Decision Support Systems, 22, 45–58.

    Article  Google Scholar 

  8. Bass, F., & Wittink, D. (1975). Pooling issues and methods in regression analysis with examples in marketing research. Journal of Marketing Research, 12, 414–425.

    Article  Google Scholar 

  9. Beise, M. (2011). Lead markets: Country-specific success factors of the global diffusion of innovations. Heidelberg: Physica-Verlag.

    Google Scholar 

  10. Biederman, D. (2012). Supply chains head to the cloud. Journal of Commerce, 13(1), 186–189.

    Google Scholar 

  11. Boylaud, O., & Nicoletti, G. (2001). Regulatory Reform in Retail Distribution. OECD Economic Studies, No. 32, 2001/I, 9. Accessed May 23, 2012, from http://www.oecd.org/dataoecd/30/52/2732142.pdf.

  12. Brynjolfsson, E., & Smith, M. D. (2000). Frictionless commerce? A comparison of Internet and conventional retailers. Management Science, 46(4), 563–585.

    Article  Google Scholar 

  13. Brynjolfsson, E., Hu, Y., & Smith, M. D. (2003). Consumer surplus in the digital economy: Estimating the value of increased product variety at online booksellers. Management Science, 49(11), 1580–1596.

    Article  Google Scholar 

  14. Bun, M. J. G., & Makhloufi, A. E. (2007). Dynamic externalities, local industrial structure and economic development: Panel data evidence for morocco. Regional Studies, 41(6), 823–837.

    Article  Google Scholar 

  15. Caves, R. E., & Porter, M. E. (1977). From entry barriers to mobility barriers: Conjectural decisions and contrived deterrence to new competition. Quarterly Journal of Economics, 91(2), 241–261.

    Article  Google Scholar 

  16. Chen, S., & Ning, Jian. (2002). Constraints on e-commerce in less developed countries: The case of China. Electronic Commerce Research, 2(1–2), 31–42.

    Article  Google Scholar 

  17. Cleverley, M. (2009). Viewpoints: Emerging markets: How ICT advances might help developing nations. Communications of the ACM, 52(9), 30–32.

    Article  Google Scholar 

  18. Coppel, J. (2000). E-Commerce: Impacts and policy challenges, Economics Department Working Paper no. 252, Organization of Economic Cooperation and Development (OECD). Accessed December 24, 2000, from http://www.olis.oecd.org/olis/2000doc.nsf/c5ce8ffa41835d64c125685d005300b0/c12568d1006e03f7c12569070052efe3/$FILE/00079760.PDF.

  19. Coulter, R. A., Price, L., & Feick, L. (2003). Rethinking the origins of involvement and brand commitment: Insights from post-socialist Central Europe. Journal of Consumer Research, 30(2), 151–169.

    Article  Google Scholar 

  20. Dedrick, J., Gurbaxani, V., & Kraemer, K. L. (2003). Information technology and economic performance: A critical review of the empirical evidence. ACM Computing Surveys, 35(1), 1–28.

    Article  Google Scholar 

  21. Dekimpe, M. G., Parker, P. M., & Sarvary, M. (2000). Global diffusion of technological innovations: A coupled-hazard approach. Journal of Marketing Research, XXXVII, 47–59.

    Article  Google Scholar 

  22. Demsetz, H. (1967). Toward a theory of property rights. The American Economic Review, 57(2), 347–359.

  23. Dholakia, R., Dholakia, N., & Kshetri, N. (2004). Gender and the Internet usage. In H. Bidgoli (Ed.), The Internet encyclopedia (pp. 12–22). New York: Wiley.

    Google Scholar 

  24. ebusinessforum.com. (2005). The 2005 e-readiness rankings. Accessed November 25, 2013, from http://www.ebusinessforum.com/index.asp?layout=rich_story&doc_id=6427.

  25. Economist (2011). An internet with Chinese characteristics, July 30, 71–72.

  26. Fomby, T. B., Hill, R. C., & Johnson, S. R. (1984). Advanced econometric methods. New York: Springer- Verlag.

    Book  Google Scholar 

  27. Frischmann, B. M., & Lemley, M. A. (2007). Spillovers. Columbia Law Review, 107(1), 257–301.

    Google Scholar 

  28. Ganesh, J. (1998). Converging trends within the European Union: Insights from an analysis of diffusion patterns. Journal of International Marketing, 6(4), 32–48.

    Google Scholar 

  29. Gatignon, H., & Robertson, T. S. (1985). A propositional inventory for new diffusion research. Journal of Consumer Research, 11, 849–867.

    Article  Google Scholar 

  30. Gibbs, J., Kraemer, K. L., & Dedrick, J. (2003). Environment and policy factors shaping global e-commerce diffusion: A cross-country comparison. The Information Society, 19(1), 5–18.

    Article  Google Scholar 

  31. Gruber, H., & Verboven, F. (2001). The diffusion of mobile telecommunications services in the European Union. European Economic Review, 45, 588–677.

    Article  Google Scholar 

  32. Gwartney, J. (2009). Institutions, economic freedom, and cross-country differences in performance. Southern Economic Journal, 75(4), 937.

    Google Scholar 

  33. Harper, R. (2002). The measurement of social capital in the United Kingdom, Office for National Statistics Paris, Organisation for Economic Co-operation and Development. Accessed November 25, 2013, from http://www.oecd.org/dataoecd/22/52/2382339.pdf.

  34. Hasan, I., & Kobeissi, N. (2012). Innovations, intellectual protection rights and information technology: An empirical investigation in the MENA region. Electronic Commerce Research, 12, 455–484.

    Article  Google Scholar 

  35. Hausman, J. (1978). Specification tests in econometrics. Econometrica, 46(6), 1251–1271.

    Article  Google Scholar 

  36. Heiberger, R. M., & Holland, B. (2004). Statistical analysis and data display. New York: Springer Texts in Statistics.

    Book  Google Scholar 

  37. Hemp, P. (2006). Are you ready for e-tailing 2.0? Harvard Business Review, 84(10), 28.

    Google Scholar 

  38. Ho, S., Kauffman, R. J., & Liang, T. P. (2007). A growth theory perspective on B2C e-commerce growth in Europe: An exploratory study. Electronic Commerce Research and Applications, 6(3), 237–259.

    Article  Google Scholar 

  39. Howard, E. (2009). The transformation of retailing in Asia Pacific. Asia Pacific Business Review, 15(1), 79–92.

    Article  Google Scholar 

  40. ITU. (2002). World telecommunication development report: Reinventing telecoms (6th ed.). Geneva: International Telecommunications Union.

    Google Scholar 

  41. Jacobs, J. (1969). The economy of cities. New York: Vintage.

    Google Scholar 

  42. Jennex, M. E., Amoroso, D., & Adelakun, O. (2004). E-commerce infrastructure success factors for small companies in developing economies. Electronic Commerce Research, 4(3), 263–286.

    Article  Google Scholar 

  43. Johnsen, M. (2007). Online retailing builds, creates new opportunities. Drug Store News, 29(12), 6–68.

    Google Scholar 

  44. Kalathil, S. (2003). China’s new media sector: Keeping the state in. Pacific Review, 16(4), 489–501.

    Article  Google Scholar 

  45. King, David R., Jeffrey, G., Covin, W., & Hegarty, H. (2003). Complementary resources and the exploitation of technological innovations. Journal of Management, 29(4), 589–606.

    Article  Google Scholar 

  46. Kotabe, M. (2002). Using Euromonitor database in international marketing research. Academy of Marketing Science Journal, 30(2), 172–175.

    Article  Google Scholar 

  47. Kotabe, M., & Helsen, K. (2001). Global marketing management (2nd ed.). New York: Wiley.

    Google Scholar 

  48. Kshetri, N. (2013). Cybercrime and cyber-security issues associated with China: Some economic and institutional considerations. Electronic Commerce Research, 13(1), 41–69.

    Article  Google Scholar 

  49. Kshetri, N., & Bebenroth, R. (2012). Cross-national heterogeneity in retail spending: A longitudinal analysis of regulatory and industry factors. Journal of Macromarketing, 32(4), 374–389.

    Article  Google Scholar 

  50. Kshetri, N. (2010). Cloud computing in developing economies. IEEE Computer, 43(10), 47–55.

    Article  Google Scholar 

  51. Kshetri, N. (2011). Cloud computing in the global south: Drivers. Effects and Policy Measures, Third World Quarterly, 32(6), 995–1012.

    Google Scholar 

  52. Kshetri, N. (2001). Determinants of the locus of global e-commerce. Electronic Markets, 11(4), 250–257.

    Article  Google Scholar 

  53. Kshetri, N., & Dholakia, N. (2002). Determinants of the global diffusion of B2B e-commerce. Electronic Markets, 12(2), 120–129.

    Article  Google Scholar 

  54. Kshetri, N., Williamson, N. C., & Schiopu, A. (2007). Economics and politics of advertising: Evidence from the enlarging European Union. European Journal of Marketing, 41(3/4), 349–366.

    Article  Google Scholar 

  55. Litan, R. E., & Rivlin, A. M. (2001). Projecting the economic impact of the Internet. The American Economic Review, 91(2), 313–317.

    Article  Google Scholar 

  56. LNWWJ (2005). The Lingerie Newsletter and Women’s Wear Journal. Online Retailers Targeting Women, 147, 2005. Accessed February 17, 2010, from http://www.mcpetesez.com/june152005-3.htm.

  57. Maddala, G. S. (1971). The use of variance components models in pooling cross section and time series data. Econometrica, 39(2), 341–358.

    Article  Google Scholar 

  58. Mahmood, M. A., Bagchi, K., & Ford, T. C. (2004). Online shopping behavior: Cross-country empirical research. International Journal of Electronic Commerce, 9(1), 9–30.

    Google Scholar 

  59. Manrai, L. A., & Manrai, A. K. (2001). Marketing opportunities and challenges in emerging markets in the new millennium: A conceptual framework and analysis. International Business Review, 10(5), 493–504.

    Article  Google Scholar 

  60. Market Watch. (2007). Global Round-up. Rise in multi-channel retailing drives growth of SOA deployment. 6(7), 167–168.

  61. Marshall, A. (1890). Principles of economics. London: Macmillan.

    Google Scholar 

  62. Marshall, A. (1920). Principles of economics (8th ed.). London: Macmillan.

    Google Scholar 

  63. Meng, J., & Mummalaneni, V. (2011). Cultural influences on web service quality perceptions of e-retailing consumers. Journal of Marketing Channels, 18(4), 303–326.

    Article  Google Scholar 

  64. Myers, R. (1990). Classical and modern regression with applications. Boston, MA: Duxbury Press.

    Google Scholar 

  65. Neter, J., Wasserman, W., & Kutner, M. H. (1985). Applied linear statistical models. Homewood, IL: Irwin.

    Google Scholar 

  66. O’Rourke, K. (2000). Who is the Internet shopper? Drug Store News, 22(9), 80.

    Google Scholar 

  67. Oxley, J. E., & Yeung, B. (2001). E-commerce readiness: Institutional environment and international competitiveness. Journal of International Business Studies, 32(4), 705–723.

    Article  Google Scholar 

  68. Ranganathan, C., & Ganapathy, S. (2001). Key dimensions of business-to-consumer Web sites. Information & Management, 39(6), 457–465.

    Article  Google Scholar 

  69. Roach, S. S. (2009). Manchurian paradox. National Interest, 101, 59–65.

    Google Scholar 

  70. Rogers, E. M. (1995). Diffusion of innovation (4th ed.). New York: Free Press.

    Google Scholar 

  71. Romer, P. M. (1986). Increasing return and long-run growth. Journal of Political Economy, 94, 1002–1037.

    Article  Google Scholar 

  72. Schumpeter, J. A. (1939). Business cycles: A theoretical, historical and statistical analysis of the capitalist process. New York: McGraw-Hill.

    Google Scholar 

  73. Sciglimpaglia, D., & Ely, D. (2006). Customer account relationships and e-retail banking usage. Journal of Financial Services Marketing, 10(4), 109–122.

    Article  Google Scholar 

  74. Sherwood, T. (2007). Changing channels. Global Cosmetic Industry, 175(2), 4–36.

    Google Scholar 

  75. Spiller, p, & Lohse, G. L. (1998). A classification of Internet retail stores. International Journal of Electronic Commerce, 2(2), 29–56.

    Google Scholar 

  76. Stigler, G. J. (1966). The theory of price (3rd ed.). New York: Crowell-Collier & Macmillan.

    Google Scholar 

  77. Stranahan, H., & Kosiel, D. (2007). E-tail spending patterns and the importance of online store familiarity. Internet Research, 17(4), 421–434.

    Article  Google Scholar 

  78. The World Bank Group. (2009). Starting a business. Accessed November 4, 2009, from http://www.doingbusiness.org/ExploreTopics/StartingBusiness.

  79. Vembu, V. (2009). Desperate measure: China gives spending vouchers to citizens. Accessed July 24, 2010, from http://www.dnaindia.com/money/report_desperate-measure-china-gives-spending-vouchers-to-citizens_1231802.

  80. Wade, M., & Hulland, J. (2004). Review: The resource-based view and information systems research: Review, extension, and suggestions for future research. MIS Quarterly, 28(1), 107–142.

    Google Scholar 

  81. Xia, Y., & Zhang, G. P. (2010). The impact of the online channel on retailers’ performances: An empirical evaluation. Decision Sciences, 41(3), 517–546.

    Article  Google Scholar 

  82. Xu, S., Zhu, K., & Gibbs, J. (2004). Global technology, local adoption: A cross-country investigation of Internet adoption by companies in the United States and China. Electronic Markets, 14(1), 13–24.

    Article  Google Scholar 

  83. Yan, R. (1998). Short-term results: The litmus test for success in China. Harvard Business Review, 76(5), 61–75.

    Google Scholar 

  84. Zhao, F. (2011). Impact of national culture on e-government development: A global study. Internet Research, 21(3), 362–380.

    Article  Google Scholar 

  85. Zhu, K., & Kraemer, K. (2005). Post-adoption variations in usage and value of e-business by organizations: Cross- country evidence from the retail industry. Information Systems Research, 16(1), 61–84.

    Article  Google Scholar 

  86. Zhu, K., & Kraemer, K. (2002). E-commerce metrics for net-enhanced organizations: Assessing the value of e-commerce to firm performance in the manufacturing sector. Information Systems Research, 13(3), 275–295.

    Article  Google Scholar 

  87. Zhu, K., Kraemer, K., & Xu, S. (2003). Electronic business adoption by European firms: A cross-country assessment of the facilitators and inhibitors. European Journal of Information Systems, 12(4), 251–268.

    Article  Google Scholar 

Download references

Acknowledgments

The authors sincerely thank two anonymous ECRJ reviewers and an associate editor who helped to improve the paper drastically.

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Nir Kshetri.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Kshetri, N., Bebenroth, R., Williamson, N.C. et al. Cross-national heterogeneity in e-retail spending: a longitudinal analysis of economic, technological and political forces. Electron Commer Res (2014). https://doi.org/10.1007/s10660-014-9159-y

Download citation

  • Published:

  • DOI: https://doi.org/10.1007/s10660-014-9159-y

Keywords

Navigation