The Role of Technology, Government, Law, And Social Trust on E-Commerce Adoption

Abstract

This research explores critical factors impacting e-commerce adoption at the country-level. Due to the steady growth in e-commerce trade volumes in recent years, governments of many countries are focused on improving their share in the overall global trade. Therefore, it is crucial to examine the important drivers of e-commerce adoption at a country level rather than just individual and organizational levels. In addition to social trust, the model presented includes technological, governmental, and cultural factors as antecedents of the e-commerce adoption. Secondary data from seventy countries are collected to empirically evaluate the hypotheses presented among the factors of the research model. The hypotheses are assessed using PLS analytical procedures. We found that connectivity and technological efficacy directly influence e-commerce. We also found that legal environment and connectivity impact social trust which in its turn affects uncertainty avoidance. Our results are very important for decision makers. According to the results of our study, policy makers need to consider their country’s institutional, technological, and cultural environments. We discuss the implications of our results for researchers and practitioners.

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