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Cross-Border E-Commerce: A New Driver of Global Trade
Abstract
In this chapter, we explore cross-border e-commerce (CBEC) as a new driver of international trade. We adopt a revised i-based N-OLI framework for CBEC. Using China as a case study, we discuss the rapid growth, structure, export/ import models, and infrastructure and environment of China's CBEC. We attribute China's CBEC success to the important role of e-commerce giants such as Alibaba. com and JD.com, the designation of CBEC pilot cities, supportive governmental policies, and big capital inflows. Four factors are seen to create future opportunities for all stakeholders of global CBEC, especially for merchants: the push from governments, the rise of middle class in developing countries, technological improvements, and more SMEs adopting CBEC. On the other hand, cultural differences, customer trust, logistics, payment, and legal and regulatory barriers are among the biggest challenges facing CBEC. Lastly, we outline several recommendations for foreign firms planning on entering into China's market by means of CBEC. © Springer International Publishing AG, part of Springer Nature 2018.
... The e-commerce sites generate large volume of customers', product, logistics, transportation, customer care, and business data. The application of big data analytics with cloud computing has made possible the handling of large volume of data and transactions (Tu & Shangguan, 2018). Present plenty of e-commence data and machine learning techniques facilitate the cross-border e-commerce venders to categorize goods more powerfully (G. ...
... Researchers claimed that the language barriers, payment methods, currency of payment, tax and legal requirements and logistics and supply of products persist as the obstacles for the cross-border e-commerce (Kawa, 2017). Likewise, the consumer trust, cultural variances, logistics, online payment, and law and governance are identified as the challenges for the cross-border e-commerce (Tu & Shangguan, 2018). Similarly, conventional shopping guide systems has been became incapable to fulfill the varied needs of cross-border e-commerce shopping systems (Jiahua Li, 2019). ...
... The big data, IoT, artificial intelligence with Internet technologies have emerged the applications such as intelligent systems in transportation, strategic alliance, logistics and decision support in the China's e-commerce industry (X. . The wide use of technologies such as virtual reality and augmented reality will significantly improve the e-commerce shopping in near future (Tu & Shangguan, 2018). The future manufacturing will be in new form thus the intelligent manufacturing ecology driven by universal connection, big data, cross-border integration, self-directed intelligence, and massive innovation in product and services (B.-h. ...
Today, the terms big data, artificial intelligence, and internet of things (IoT) are many-fold as these are linked with various applications, technologies, eco-systems, and services in the business domain. The recent industrial and technological revolution have become popular ever before, and the cross-border e-commerce activities are emerging very rapidly. As a result, it supports to the growth of economic globalization that has strategic importance for the advancement of e-commerce activities across the globe. In the business industry, the wide range applications of technologies like big data, artificial intelligence, and internet of things in cross-border e-commerce have grown exponential. This chapter systematically reviews the role of big data, artificial intelligence, and IoT in cross-border e-commerce and proposes a conceptually-designed smart-integrated cross-border e-commerce platform.
... Big data analytics is a type of modern analytics that includes advanced capabilities including predictive models, mathematical algorithms and what-if analysis driven by analytics systems. The introduction of cloud computing and big data analytics has made it easier to process huge volumes of data and business transactions [29]. Now the big data analytics and cognitive computing have been focused for improved decision-making [25]. ...
... Big data analytics is a nuanced method of analysing big data to expose information -for instance invisible anomalies, trends, market characteristics and consumption patterns that can help businesses to make better business strategy and actions. The use of big data analytics and cloud computing techniques has allowed massive data sets to be managed [29]. ...
In recent times, the amplified applications of big data, artificial intelligence and IoT are used to explore valuable insights for decision-making. Recent developments in the computer platforms, sophistication in networking technologies and Information and Communication allow the adoption of IoT in a variety of applications. Though academic and practitioners worked in the domain in the past, there are many instances that warrants academic document that exposes comprehensive idea in this field. This chapter discusses various aspects related with artificial intelligence, big data, Internet of things (IoT), analytics, and sensing data to offer ideas in this domain. In addition, it includes IoT architecture layers and proposed model by combining big data, IoT, analytics and IoT data sensing sources. This proposed model aims to offer wide-ranging usage and application of big data, IoT, and IoT data sensing sources.KeywordsArtificial intelligenceBig dataInternet of thingsAnalyticsBig data processingSensing data
... [22] did some notable work in this area, where they analyzed transportation costs and international trade. Similarly, [23] investigated variables impacting export in Middle Eastern bilateral trade. [24] has also done significant work in this area. ...
... Therefore, the coefficient of common language is significant and positive. This result is consistent with [23] where they found a similar impact of trade cost on Vietnam's export. The result is also consistent with another study conducted by [14] where they found the trade cost has a significant negative impact on the export of Ethiopia. ...
The main purpose of this study is to understand whether the trade cost influences the export of Readymade Garment (RMG) export of Bangladesh. Theoretically, with an increase in the volume of exported goods, the costs will also increase. Therefore, this study is to examine the impact of trade costs on the readymade garment export performance of Bangladesh for the period of 2007 -2015. This study applied two types of panel data models: pooled OLS model and the Poisson-Pseudo Maximum Likelihood (PPML) estimation procedure have been employed in the estimation. The main contribution of the paper compared to other studies on Bangladesh lies in its approach in addressing the impact of trade costs on exports and using PPML gravity equation estimation. The results of the study indicate that trade costs have a significant negative impact on exports of Bangladesh. The major findings show that trade cost has a negative and significant impact on Bangladesh's bilateral RMG export performance. This implies that the Bangladeshi government should work to reduce domestic trade costs in order to boost efficiency and sustainably promote RMG export.
... The enterprises have realized the value of incorporating the modern analytic techniques in recent years, focusing on big data and trying to integrate machine learning and artificial intelligence techniques for superior data analysis. The usages of big data analytics with cloud computing techniques have made possible to handle large set of data [26]. In crosswise businesses, the big data has combined traditional structured data as a mission-critical component. ...
Today, the business intelligence and decision support systems are proven as a vital infrastructure for the ever-growing business organization. Business enterprises are ever more depending on data to respond to key operational and strategic operation of their customers, markets, and their stakeholders. The business intelligence has progressed as the volume of data created by the intelligent devices and the Internet have grown up exponentially. Nevertheless, without appropriate applications and systems in a position to analyze the increasing big data, the enterprises are encountering various complexities. This chapter discusses the applications, challenges, and conceptually designed architecture that includes skills requirement, mining techniques, technical, design elements in business intelligence, and decision support systems.
Th e rapid growth of business resulted in the formation of a new competitive environment
with the dominance of innovative solutions that att empt to increase the eff ectiveness of various pro-
cesses by introducing new approaches. Hence, the article is focused on innovation implementation in
bringing eff ectiveness into business. Th e article further observes that due to the limitations of traditional
approaches, business executives must constantly seek out novel ways to innovate. To this end, the article
employs historical and descriptive methodologies to access and evaluate the performance of innovation
in business pros and cons.
Knowledge Engineering (KE) is a fi eld within artifi cial intelligence that develops knowledgebased systems. KE is the process of imitating how a human expert in a specifi c domain would act and take decisions. It contains large amounts of knowledge, like metadata and information about a data object that describes characteristics such as content, quality, and format, structure and processes. Such systems are computer programs that are the basis of how a decision is made or a conclusion is reached. It is having all the rules and reasoning mechanisms to provide solutions to real-world problems. This book presents an extensive collection of the recent fi ndings and innovative research in the information system and KE domain. Highlighting the challenges and diffi culties in implementing these approaches, this book is a critical reference source for academicians, professionals, engineers, technology designers, analysts, undergraduate and postgraduate students in computing science and related disciplines such as Information systems, Knowledge Engineering, Intelligent Systems, Artifi cial Intelligence, Cognitive Neuro - science, and Robotics. In addition, anyone who is interested or involved in sophisticated information systems and knowledge engineering developments will fi nd this book a valuable source of ideas and guidance.
This book discusses the effect that artificial intelligence (AI) and Internet of Things (IoT) have on industry. The authors start by showing how the application of these technologies has already stretched across domains such as law, political science, policy, and economics and how it will soon permeate areas of autonomous transportation, education, and space exploration, only to name a few. The authors then discuss applications in a variety of industries. Throughout the volume, the authors provide detailed, well-illustrated treatments of each topic with abundant examples and exercises. This book provides relevant theoretical frameworks and the latest empirical research findings in various applications. The book is written for professionals who want to improve their understanding of the strategic role of trust at different levels of the information and knowledge society, that is, trust at the level of the global economy, of networks and organizations, of teams and work groups, of information systems and, finally, trust at the level of individuals as actors in the networked environments.
1990’lardan beri yaşadığımız teknolojik gelişmeler, önemli değişikliklere yol açmıştır. Teknolojik devrim de denilen, yaşanan bu gelişmelerle birlikte e-ticaret”, “e-devlet” gibi kavramlar hayatımıza girmiştir. Teknolojik devrimle birlikte üretilen mal ve hizmetler işletmelerin satış ve pazarlama anlayışında değişme yaratırken, tüketicilerin ise istek ve ihtiyaçlarını satın alma alışkanlıklarını ve tercihlerini etkileyen faktörlerde değişim sağlamıştır. Türkiye’de e-ticaret kullanımı son yıllarda yaygınlaşırken, e-ticaret yoluyla alışverişlerin de arttığı gözlemlenmiştir. Küresel sınır ötesi e-ticaret de ülkeler arasında yaygınlaşmaktadır. Covid-19 Pandemisi de dijital teknolojileri, internet üzerinden alışverişin önemini daha da ortaya koymuştur. İnsanlar artık zamandan da tasarruf etmek amacıyla, sosyal mesafe ve hijyen nedeniyle internetten alışverişe yönelmişlerdir. Bu çalışmada Türkiye’de e-ticaret ve ihracat verileri incelenmiş, Covid-19 Pandemi döneminde de Türkiye’deki elektronik ticaretin seyri ele alınmıştır. En çok e-ihracatı yapılan ürün kategorisi ise hazır giyim olarak tespit edilmiştir. Seyahat ve turizm, salgın öncesi dönemde e-ticarette en çok tercih edilen ürün kategorisi içindeyken; salgın döneminde ise en çok azalış gösteren sektör olmuştur.
Purpose
This study elicits the critical attributes, consequences and values associated with the purchasing process in the context of cross-border e-commerce (CBEC). The purpose is to provide a better understanding of the fundamental factors that determine consumer values in CBEC.
Design/methodology/approach
The study applies the means-end-chain theory and soft-laddering techniques to interview 60 CBEC consumers to construct an implication matrix and a hierarchical value map (HVM) of the consumer purchasing process, consisting of attribute-consequence-value (A-C-V) paths.
Findings
By analyzing the significant linkages, elements, ladders and chains in the HVM, four dominant A-C-V paths were identified: economic-driven, efficiency-driven, progress-driven and quality-driven paths.
Research limitations/implications
This study included only Chinese CBEC buyers. This limitation might affect the generalizability of the conclusions as culture, purchase habits and economic development differ between China and other countries.
Practical implications
The results of this study provide CBEC practitioners an understanding of the consumer purchasing process and how consumer values are associated with platform characteristics. Thus, the results aid practitioners in allocating resources and developing CBEC platforms in an appropriate manner and direction.
Originality/value
This study sheds lights on the emerging phenomenon of CBEC. By applying the means-end-chain approach, the study provides a comprehensive HVM for interpreting the consumer online purchasing process in this novel context. By illustrating the dominant paths, this research provides deeper theoretical insights into the specific focuses of CBEC consumer purchasing.
We examine various screening, auditing, and resolution mechanisms to limit both spontaneous and calculated supplier opportunism. Using a proprietary dataset, with over 1000 complaints registered about suppliers during the period 2014 to 2017, we find substantial heterogeneity in firm risk reduction strategies to limit supplier opportunism. Buyers from developed economies appear to experience less supplier opportunism than firms from non-OECD countries. Opportunism appears more pronounced in suppliers from poor countries than in firms from emerging market economies, such as China. Importantly, our analysis demonstrates several mechanisms that appear have limited, if any, impact on supplier opportunism, such as the use of company references and third-party visits. In contrast, direct factory visits and third-party quality checks are strongly associated with lower supplier opportunism. Overall, our results reveal the relative effectiveness of several different mechanisms to limit supplier opportunism.
The purpose of the present study is to investigate the impact of e-commerce on international trade and employment. Electronic commerce offers economy-wide benefits to all countries. The gains are likely to be concentrated in developed countries in the short run but, developing countries will have more to benefit in the long run. The volume of international trade will increase via e-commerce. The countries open to imports from high-income economies will benefit from knowledge spillovers. In addition, electronic commerce is expected to create and destroy jobs.
Cross-border electronic commerce, as a new mode of foreign trade, represents the development direction of the future. There are the following development opportunities for the port city, such as Manzhouli, to promote Sino-Russian cross-border e-commerce: the global e-commerce internationalization trend, the Sino-Russian cross-border e-commerce huge potential, foreign trade transformation and upgrading urgent needs and the government strong support and so on. At the same time, there are many challenges around the Sino-Russian cross-border e-commerce, such as the downturn of Russia’s economic, the regional competition of Heilongjiang port, the weak support condition of foundation, the lack of professional talents.
Cross-border e-commerce has progressed in the businesses of foreign trade enterprises in recent years. This paper proposes and validates that cross-border e-commerce as enterprise innovation should include businessmode innovation, not just institutional innovation or technological innovation, thus expanding the connotation of e-commerce. For enterprises, according to an analysis using data from 203 foreign trade companies, cross-border e-commerce as enterprise innovation plays a mediating role between government's pro-innovation supportive policy and firm performance, in particular, institutional innovation and business-mode innovation as components play full mediating roles. This study is of great value to other countries promoting cross-border e-commerce. Implications on m-commerce of the findings are discussed.
The Internet enables enterprises to sell their products via cross-border business-to-business (B2B) e-commerce portals. However, researchers know little about the early-mover advantages for such third-party platforms. The rapid, convenient, and wide market access offered by these platforms may allow early-mover exporters to enjoy advantages over late movers in terms of learning effects and switching costs. We hypothesize that early-mover advantages may diminish beyond a critical length of tenure because of the free-riding costs, resolution of technological or market uncertainty, as well as the incumbent inertia of early movers. We also argue that product price and diversity will pose different boundary conditions on how early-mover advantages are manifested. Using web search and mining methods, we collect data on approximately 300,000 B2B export transactions conducted by nearly 4000 firms in 2007–2014 through online portals. Employing panel data models, we find strong evidence supporting our hypotheses.
This article first traces the changing world economic scenario for international business over the past two decades, and then goes on to examine its implications for the location of foreign direct investment and multinational enterprise activity. It suggests that many of the explanations of the 1970s and early 1980s need to be modified as firm-specific assets have become mobile across natural boundaries. A final section of the article examines the dynamic interface between the value-added activities of multinational national enterprises in different locations.
E-commerce sales are growing more rapidly than non-e-commerce sales. This creates a great opportunity for small and medium sized companies to find and develop new customers in markets outside their domestic ones. However, there are substantial barriers to doing business across international borders - including differences in customs and duty regimes and tax laws. Some federal governments are trying to alleviate the impact of such barriers by providing government programs such as duty free zones for the import and export of products. However, there remain critical barriers that government programs cannot overcome - for example, exchange rate fluctuations. This paper explores the potential for e-commerce transactions across the borders of one of the most vibrant bilateral commercial markets in the world - the one between Canada and the United States of America. The federal governments of both countries have programs in place designed to facilitate cross-border business. This paper examines those programs to explore the question of whether or not participation in such programs can actually assist small and medium sized firms in overcoming the barriers to cross-border e-commerce transactions. Implications for company decision makers and government policy makers in Canada and the US, with application to other cross-border regions, are discussed.
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.
The rise of the internet is often associated with the “death of distance” or at least the decreasing relevance of geographical distance in the supply of information. We investigate whether distance still matters for online trade in physical goods. We use data from an online consumer survey panel on online cross-border trade in goods in a linguistically fragmented EU market. The analysis confirms that distance-related trade costs are greatly reduced compared to offline trade in the same goods. However, language-related trade costs increase. Moreover, online trade introduces new sources of trade costs such as parcel delivery and online payments systems. On balance, there are no indications that online trade is less biased in favour of home market products than offline trade. We examine options available to policy makers to boost cross-border e-commerce in the EU Digital Single Market. A 1% increase in the use of efficient and flexible cross-border payment systems could increase cross-border e-commerce by as much as 7%. We also show that online trade gives a comparative advantage to English-language exporting countries.
Although several aspects of the internationalization process have been addressed in the literature, there is a lack of a unified theoretical framework that explains the internationalization process, entry modes, and timing strategies. This article synthesizes several foundational theories on modes of global entry and offers a conceptual framework of the internationalization process. Throughout the article, the authors identify several propositions based on the proposed theoretical framework.
The transition from a command economy to a market-based economy has been remarkably successful in China. After 15 years of negotiations, China finally joined the World Trade Organization (WTO) in December 2001. Because of trade and investment liberalization under the WTO, there will be greater competition between Chinese and foreign firms, both inside China and outside China. While there is a great deal of economic literature on China's entry to the WTO, there has been no research on the global marketing impact and implications of China's membership of the WTO. This paper is an attempt to fill this gap. The objective of this study is to examine the general impact of China's entry to the WTO and to assess the global marketing implications of specific trade-related policy issues within the WTO framework for China. Eleven specific WTO policy issues are examined and several global marketing propositions offered in terms of the WTO's impact on and implications for China.
This paper updates some of the author's thinking on the eclectic paradigm of international production, and relates it to a number of mainstream, but context-specific economic and business theories. It suggests that by dynamizing the paradigm, and widening it to embrace asset-augmenting foreign direct investment and MNE, activity it may still claim to be the dominant paradigm explaining the extent and pattern of the foreign value added activities of firms in a globalizing, knowledge intensive and alliance based market economy.
The emergence of the Internet has created a dynamic electronic marketplace, where a new species of e-commerce corporations are taking root. However, the factors affecting the growth of these e-commerce corporations is a relatively unexplored area in international business. This study contributes to the international business literature in two significant ways. First, it attempts to critically evaluate the major international business theories to identify the variables affecting the growth of e-commerce corporations. Second, the proposed framework in the study extends the explanatory power of the eclectic paradigm not only by interpreting the paradigm in the context of e-business, but also by including an element of network-based advantages to the OLI-configuration.© 2002 JIBS. Journal of International Business Studies (2002) 33, 679–697
This article discusses the implications of the advent of alliance capitalism for our theorizing about the determinants of MNE activity. In particular, it argues that, due to the increasing porosity of the boundaries of firms, countries and markets, the eclectic, or OLI, paradigm of international production needs to consider more explicitly the competitive advantages arising from the way firms organize their inter-firm transactions, the growing interdependencies of may intermediate product markets, and the widening of the portfolio of the assets of districts, regions and countries to embrace the external economies of interdependent activities.© 1995 JIBS. Journal of International Business Studies (1995) 26, 461–491
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