Cross-Border E-Commerce: A New Driver of Global Trade

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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, 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.

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... 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. ...
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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.
Conference Paper
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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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