Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)

Research Article: 2021 Vol: 20 Issue: 2S

Antecedents of Ecommerce on Actual Use of International Trade Center: Literature Review

Dmaithan Abdelkarim Almajali, Applied Science Private University

Keywords

ITC, E-Commerce, Trust,,Internet

Abstract

 This paper aims to explore the factors influencing actual use of international trade center, The objective of this study is to analyze the impact of Awareness of E-commerce, Government Policies, Trust, Security, and Facilitating Condition on international trade center. We conclude this work with findings ’discussion, research limitations, and future work.

Introduction

Developing nations are attempting to catch up because they are too far behind. These countries are attempting to emulate the practices of developed countries such as the United States and the United Kingdom, which have benefited from low-cost access to broader markets and have been able to access markets at any time and from any place, improving their economies and increasing their competitiveness (Gautam, 2012; Khanetal, 2017 ). The adoption of ecommerce has provided companies with a variety of opportunities to enter developing countries' national and foreign markets. Despite the benefits achieved by developed countries as a result of e-commerce adoption, available literature indicates that, due to the challenges, e-commerce adoption in developing countries is limited (Vaithianathan, 2010; Das & Khan, 2016). It is also worth noting that, unlike in developed countries, people in developing countries prefer to buy and sell face to face. They want to see and discuss the best price on anything they want to buy. Ecommerce development in developing countries is slow due to a number of constraints (Azizi, 2013; Awan & Khan, 2016). Many businesses in developed countries have yet to fully appreciate the advantages of e-commerce. There are several ecommerce issues in developing countries that must be tackled before they can reap the benefits of ecommerce (Vaithianathan, 2010; Khan & Fournier-Bonilla, 2016). Small and medium-sized companies in developing countries will benefit from e-commerce by expanding their market prospects in both local and foreign markets, resulting in increased sales and income. Doing business online is becoming more common in developing countries, but they are unable to compete with developed countries because they have not been able to fully exploit the capacity and efficiencies of e-commerce (Huamei, 2013; Agbodu & Omah, 2012). The limited benefits of e-commerce are also due to the environmental and economic constraints of developing countries (Gikandi & Bloor, 2010; Khan et al., 2016). Most e-commerce research for developing countries has centered on social and legal issues including privacy, authentication, confidence, psychological and cultural barriers, internet connectivity, and e-security (Kundi et al., 2012), but not enough work has been done on technical infrastructure, policy interventions, and trust, which are affecting the spread of e-commerce (Makame et al., 2014; Khan & Alhusseini, 2015). If given enough attention, e-commerce has the potential to increase productivity and efficiency, change the way businesses are conducted, and provide strong growth opportunities in developing countries (Gautam, 2012; Uwemi & Khan, 2016). As a result, there is a pressing need to assess the obstacles that e-commerce in developing countries faces. Several studies have been conducted to determine how e-commerce has increased business transactions internationally, as well as how obstacles to e-commerce are impacting e-commerce in developing countries (Azizi, 2013; Vaithianathan, 2010; Bashir & Khan, 2016). Oreku, et al., (2009) demonstrated through their research that e-commerce has tremendous potential for empowering people in developing countries to solve challenges and establish a viable economy. After gaining a thorough understanding of the current state of e-commerce globally, this study will focus on the International Trade Center in E- Commerce in Developing Countries. The findings of Jordanian research and studies indicate that e-commerce still faces numerous challenges. For example, (Yaseen et al., 2016) note that the lack of regulation has harmed electronic commerce, while (Hussein & Baharudin, 2017) a study revealed that the lack of an information security component on the network is a major challenge to Jordan's electronic commerce experience.

Literature Review

E-Commerce Definition

E-commerce has been characterized in a variety of ways by a number of researchers. (Khoshnampour & Nosrati, 2011) provided a clear description of selling and purchasing goods and services through the internet or other forms of networks, indicating (Terzi, 2011) that it is about using the internet to conduct local or foreign business transactions. In order to improve the customer participation, the use of IT to carry out business transactions between buyers, seller and other partners was the core of the definition presented by the (Zaker & Ansari, 2013) while the use of Web 2.0 applications in trade activities resulted in greater satisfaction and economic value. E-commerce, according to Turban et al., is a business model in which transactions are performed over electronic networks (i.e., the internet), including the processes of purchasing and selling goods, services, and information. According to (Nielson et al., 2011), a company can be considered a true E-commerce venture if its major revenue is generated through the internet, the online environment is connected to all of its major processes, business operations can be conducted 24 hours a day, seven days a week, and it is always open to satisfy global customers. Secondary characteristics include a less centralized and hierarchical organizational structure than conventional business models. These characteristics enable an organization to respond rapidly to rapid changes in the digital environment, where versatility and the ability to implement changes are critical.

International Trade Center

Market Analysis Tools Portal (https://marketanalysis.intracen.org/en)

The International Trade Centre (ITC) has created a collection of online tools to improve global trade transparency and market access. These tools help companies find export and import opportunities, compare market-access criteria, monitor national trade results, and make well-informed trade decisions.

The Market Analysis Tools suite includes one of the world's largest databases of trade information, tariff details, and rules of origin for free trade agreements. Additional resources provide estimates of export opportunities, market price data, regional trade and investment data, and much more.

Trade Map

Trade Map offers metrics on export efficiency, international demand, alternative markets, and competitive markets, as well as a directory of importing and exporting firms, in the form of tables, graphs, and charts. The Harmonized System's 5300 goods are covered by the Trade Chart, which includes 220 countries and territories. From the most aggregated level to the tariff line level, monthly, quarterly, and yearly trade flows are available.

Rules of Origin Facilitator

The Rules of Origin Facilitator gives you easy access to the ITC's database of origin rules and clauses in trade agreements. When combined with the tariff and trade agreements databases that ITCs Market Access Map has been maintaining since 2006, it creates a one-of-a-kind market intelligence solution that allows businesses to profit from trade agreements all over the world. More than 350 trade agreements used by more than 190 countries are currently included in the database of rules of origin. The ITC's database on rules of origin is constantly growing, with the ultimate goal of covering all existing free trade agreements and preferential schemes around the world (more than 450).

The Rules of Origin Facilitator aims to assist SMEs in expanding their trade by allowing them to take advantage of global trade opportunities such as low duty rates provided by trade agreements. Policymakers, trade negotiators, economists, and other users will all benefit from the method.

Export Potential Map

The Export Potential Map is a free tool that uses the ITC export potential methodology to convert economic analysis into useful trade data.

You will spot the following items using the Maps customizable and shareable visualizations:

1. (Untapped) Export potential products, markets, and suppliers

2. Export diversification opportunities

Market Access Map

Market Access Map is a free analytical platform that allows users to access, compare, analyze, and download customs tariffs, tariff-rate quotas, trade remedies, and non-tariff steps that apply to a particular good in any market worldwide. The web application is interactive, straightforward, and easy to use.

Investment Map

The Investment Map database gathers annual FDI statistics for approximately 200 countries, as well as comprehensive FDI sectoral and/or country breakdowns for approximately 115 countries. The Investment Map assists Investment Promotion Agencies in identifying target markets, competitive countries, as well as current and potential foreign investors. It also assists businesses in identifying possible foreign investment locations.

Investment Map, in conjunction with the other ITC Market Analysis Tools, aims to improve knowledge transparency in international trade and assist actors in developed countries in making the best decisions possible in a globalized and evolving world.

Market Price Information

Discover Market Prices in Real-Time

Market Price Information gives you free access to real-time price and market data for over 300 agricultural products. Prices are broken down by range, consistency, and other characteristics for each product, allowing micro, small, and medium-sized businesses to keep up with market changes. For the following industries, real-time price data is available:

• Agricultural soft commodities

• Culinary spices and herbs

• Dairy and livestock

• Fish and seafood

• Fresh fruits and vegetables

• Grains, pulses and oilseeds

• Oils nuts and fats

Research Model and Hypotheses Development

The slow growth of e-commerce in developing countries, especially Jordan, is due to a number of factors. Many studies on the adoption of e-commerce in developing countries have identified issues such as customer behavior, infrastructure, political issues, socio-economic issues, language barriers, and computer illiteracy, among others (Olatokun & Bankole, 2011; Apulu & Ige, 2011; Bankole et al., 2017). Most Jordanians are unaware of the importance of e-commerce, and customers are wary of disclosing personal details online due to online fraud (Anzaki, 2014). Consumer attitudes toward e-commerce systems, privacy, protection of consumer information, and trust are all problems that are impeding the spread of e-commerce (Wei et al., 2010). Google's Google Play Store had 2.56 million apps in the first quarter of 2020, while Apple's App Store had nearly 1.85 million apps for its users. Online users are downloading various mobile apps at an alarming rate; as of the end of June 2017, Apple's Store had received a total of 180 billion installs since its inception in 2008 (Statista, 2020). Google announced at the end of 2016 that the number of downloads from the Android Market had surpassed 75 billion, while the number of downloads from the Apple Market had reached nearly 25 billion (Medium, 2017). The proliferation of mobile apps and the increasing rate of downloads have resulted in the emergence of security and privacy concerns. New mobile malware samples surpassed 1.6 million in the first quarter of 2019, and overall mobile malware samples surpassed 29 million for the rest of the year (McAfee, 2019).

Awareness of E-commerce

Because of a lack of understanding, e-commerce literacy appears to be poor in developing countries. In developing countries, a lack of internet knowledge is impeding the growth of e-commerce (Bangkok Post, 2006). As a result, internet users often face obstacles that obstruct effective online interaction. Illiteracy, especially computer illiteracy, has also been a significant impediment to the growth of e-business (Mieseigha & Ogbodo, 2013; McCrohan et al., 2010; Khan & Adediji, 2017). As a result, many people are limited to e-mail, web surfing, and social media chatting. Furthermore, individuals and organizations' low levels of knowledge of information technology contribute to the minimal use of e-commerce, which inhibits them from exploring new ways to develop their companies (Salehi, 2013).

Government Policies

Many studies have found that appropriate government policies have an effect on e-commerce development (Burinskien, 2012). Because of weak governance (Akintola et al., 2011), developing countries face a variety of economic challenges, including a lack of effective leaders and, as a result, a government that lacks the expertise and ability to resolve various social, economic, and political issues. Jordan is dealing with a variety of problems, including political unrest, economic mismanagement, and poverty (Jobodwana, 2009). While most developing countries have a number of e-commerce operations, growth has been slow due to a lack of effective government policies (Anzaki, 2014). Aside from the above problems, the developing countries' main stumbling block is the formulation and execution of government policies (Agwu & Emeti, 2014).

Trust about E-commerce System

Several studies have been conducted on confidence, which has long been a source of concern in e-commerce and is one of the most widely studied aspects of e-commerce from the perspective of consumers. When it comes to e-commerce, confidence is crucial because it is one of the primary motivators for consumers to conduct business online (Kobayashi et al., 2013). One of the key problems with online shopping, according to Huamei (2013), is a lack of confidence in online purchases. In a wide group of unidentified vendors, confidence is crucial (Bazdan, 2011). It is vital in encouraging customers to buy goods and services online (Boateng et al., 2014).

Security and Privacy

Although some researchers have claimed that security and privacy have limited the full e-commerce potentials (Agwu et al., 2014), many consumers have legitimate concerns about disclosing personal details to an unknown third party over the internet, and they have no idea how their information would be treated (Feigenbaum et al., 2009). Because of the fear of fraud and cyber crime, consumers' attitudes toward e-commerce have shifted, making protection and privacy one of the most pressing concerns in developing countries' e-commerce services (Ibikunle, 2013). Proper security will protect consumers' information from online fraud. This is a crucial concern for both customers and organizations, as it is a critical success factor for the latter (Mandi, 2009).

Facilitating Condition

The enabling conditions, according to Taylor & Todd (1995), are the degree to which a user assumes that an organizational and technological framework exists to facilitate the use of a new information system. Taylor & Todd (1995), used four models to develop the theoretical basis of the facilitating condition. The facilitating conditions, according to (Wang & Chou, 2006), have had a positive impact on the practice of information technology stage. Moreover, the direct effect of the above five factors on International trade center (see Figure 1).

Figure 1: The Research Model

H1: Awareness of ecommerce will have impact on actual use of international trade center

H2: Government policies will have impact on actual use of international trade center

H3: Trust about e-commerce system will have impact on actual use of international trade center

H4: security and privacy will have impact on actual use of international trade center

H5: facilitating condition will have impact on actual use of international trade center

Methods and Procedures

Research Method

To achieve the study's objectives of identifying antecedents of E-commerce on Jordan's International Trade Center, the researchers used a descriptive approach. The data will be gathered through a review of theoretical literature and previous studies on the study's subject. The questionnaire will be used to collect data from the study's sample.

The Study Sample

Managers, heads of divisions, and owners of companies in Jordan's markets will make up the study sample.

Discussion and Conclusion

Several scholars have researched e-commerce in developing countries over the last decade, and a number of popular and culturally specific challenges have been found. Jordan is used as a case study for a developed world where e-commerce is still in its early stages. As a result, this research adds to previous work and provides an opportunity to improve E-commerce adaptation research. Due to obstacles such as poor infrastructure throughout the country except in the capital, social patterns and culture, and educational and computer literacy, Jordanian society is moving towards online shopping at very low rates of adoption, according to the main findings of this study. As a result, Jordan's e-commerce industry is still in its early stages.

Recommendations

In view of the findings, the researchers suggest the following:

• The need for e-commerce operations to meet the needs and requirements of customers, especially international customers, and to achieve the highest level of satisfaction in order to boost Jordan's domestic markets and propel it into the ranks of developed nations.

• The importance of being mindful of the risks associated with electronic trading and ensuring the accuracy of the processes used in the trade exchange process.

• The need to have an integrated knowledge base on the website in order to improve direct communication with external customers for the purposes of e-commerce.

• To test hypothesis, researchers must perform more empirical studies.

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