Diffusion and Impacts of the Internet and E-commerce in China

Abstract

E‐commerce diffusion has apparently taken different paths in different nations partially because of the implications of national technology and the political and economic environments. This paper examines both the diffusion and the impacts of e‐commerce in China, based on results of a large‐scale survey conducted in 10 countries including China. Findings lead to the conclusion that Chinese firms have started to build up e‐commerce technology infrastructure and to create a Web presence. However, they fall behind in conducting actual e‐commerce transactions, mostly because barriers in business, legal and cultural perspectives fail to accommodate the technology progress. In addition, three surveyed sectors, manufacturing, wholesale/retail and banking/insurance, have appeared to follow quite different paths in adopting e‐commerce. There are also differences between large firms and SMEs regarding e‐commerce diffusion strategies and impacts. Finally, our findings support the argument that a healthy e‐commerce infrastructure should be supported both by advanced technologies and by a friendly business, legal and cultural environment.

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