The Expansion of Global E-Commerce: Globalization's Contributions

Analyzed

Sunil Kumar Vohra

, Ankita Pandey

, Susheel Kumar Singh

and Amit Mishra

Amity University, Noida, Uttar Pradesh, India

University of Lucknow, UP, India

Heera Lal Yadav Balika Degree College, UP, India

Keywords: E-Commerce, B2B, B2C, Globalization, Worldwide.

Abstract: In this work, a framework that examines the correlation among companies worldwide, the quantity of e-

commerce usage, and organizational value are created and evaluated using details from a thorough study of

companies (Brazil and China) in three different areas. We find that performance judged by effectiveness,

organization, and market impacts increases as e-commerce usage grow internationally. Improved economic

performance in all three categories is also correlated with the breadth of e-commerce usage. Yet, there are

different effects of globalization on business-to-business and business-to-consumer e-commerce, hence more

global enterprises are more like to interact in B2B but less like to interact in B2C. Our findings are consistent

with the assumption that whereas downstream business activities are more regional or multinational, upstream

companies are more worldwide.

1 INTRODUCTION

The landscape of e-commerce is undeniably

reshaping the contours of modern commerce,

propelled by the dynamic interplay of technological

innovation and market demand. As underscored by

Mao et al. (2021), the significant sway of e-commerce

is palpable across diverse facets of manufacturing

processes, accentuating the concomitant surge in

scale and intricacy. Indeed, the increasing pressure

within e-commerce is palpably manifest in the

manifold dimensions of analysis, planning,

management, and the labyrinthine network of internal

and external liaisons among suppliers and

intermediaries. This transformative tide, fuelled by

the imperatives of corporate productivity, has been

substantially bolstered by the National Science

Foundation's patronage, as elucidated through a

confluence of scholarly inquiry and empirical

endeavours.

In the crucible of global commerce, the advent of e-

commerce heralds a paradigmatic shift, as delineated

by Kim (2019), accentuating a trajectory marked by

heightened corporate efficiency and market

accessibility. The epochal rise of e-commerce has

engendered a palpable reconfiguration, driving down

processing overheads and facilitating facile forays

into uncharted markets. This confluence of cost

mitigation and expanded consumer choice augurs a

salutary net effect for consumers, epitomising the

transformative potential of digital commerce. The

expansive vista of e-commerce, encapsulating a

kaleidoscope of financial transactions, ranging from

retail emporiums to digital content provisioning,

underscores the multifarious contours of

contemporary economic activity. Yet, amidst this

proliferation, regulatory paradigms remain a

disparate patchwork, a point poignantly underscored

by Mohamad et al. (2022), signifying the perennial

struggle to harmonise regulatory frameworks within

the global tapestry of commerce. In this discourse, the

nexus between e-commerce and globalization unfurls,

illuminating the expansive terrain of digital

commerce and its profound ramifications for the

global economic order.

2 LITERATURE REVIEW

The research conducted by Navendan et al. (2022)

scrutinises the integration of blockchain technology

within e-commerce logistics, proposing a theoretical

Vohra, S., Pandey, A., Singh, S. and Mishra, A.

The Expansion of Global E-Commerce: Globalization’s Contributions Analyzed.

DOI: 10.5220/0012912100003882

Paper published under CC license (CC BY-NC-ND 4.0)

In Proceedings of the 2nd Pamir Transboundary Conference for Sustainable Societies (PAMIR-2 2023), pages 669-673

ISBN: 978-989-758-723-8

669

model aimed at tackling some of the most pressing

issues in the field. Their work primarily focuses on

enhancing user confidence, bolstering data security,

and ensuring the privacy and safety of financial

transactions for all parties involved. This is

particularly critical as the e-commerce sector

continues to expand rapidly, driven by global shifts in

consumer behaviour and technological advancements.

The model also proposes mechanisms to rigorously

assess service quality, an aspect vital for maintaining

consumer trust and operational efficiency. Their

analysis reflects a broader trend towards adopting

more liberal, technology-neutral verification

standards, which could facilitate easier regulatory

compliance and foster a more resilient e-commerce

ecosystem.

On a related note, Ahi et al. (2023) emphasise the

necessity of policy frameworks that reinforce formal

institutions to aid less developed nations and smaller

enterprises in harnessing the full potential of e-

commerce. This approach is envisaged to not only

level the playing field but also stimulate economic

inclusivity by connecting disparate markets. In

contrast, Banescu et al. (2022) explore the

repercussions of e-commerce expansion on the labour

market, illustrating a growing demand for a

technically skilled workforce. This shift underscores

the need for education systems to adapt, equipping

individuals with the requisite skills to thrive in a

digitally dominated economy.

Further complicating this landscape, Alsaad et al.

(2019) investigate the differential impact of

globalization on B2B and B2C e-commerce

transactions, noting that global enterprises tend to

prefer the former. This preference underscores the

intricate, multi-layered relationship between e-

commerce and globalization, a theme further

explored by Irudayasamy et al. (2022). Their work

elucidates the subtle yet significant influences that

globalization exerts on e-commerce strategies,

highlighting the complexity of navigating

international markets in an era of profound

technological and economic transformation.

Collectively, these studies offer a nuanced

understanding of the challenges and opportunities

presented by the evolving landscape of e-commerce

in the context of global economic dynamics.

3 HYPOTHESES

H1: A wider public breadth of e-commerce use will

be seen in extremely international enterprises.

H2a: Higher levels of B2B e-commerce usage

will be seen in high enterprises. H2b: Extremely

global companies will employ B2C e-commerce at

competitive rates.

H3: Since employing e-commerce, highly

international enterprises will have stronger effects.

H4: Impacts of globalization on performance will

be reduced by the extent of e-commerce usage.

H5: Enterprises using more e-commerce usually

experience negative performance effects.

4 RESEARCH METHODOLOGY

The research methodology deployed in this study

involved stratifying the population by sector and

organisation size within each participating country.

Sample populations were sourced from typical

business listings, representing local market

demographics. The chosen nations varied in their

stage of economic development and included

developed, newly industrialised, and emerging

markets across three primary geographical regions.

The sectors selected for this survey were

manufacturing, distribution, and finance, identified

due to their advanced utilisation of e-commerce

technologies. In terms of sample size, the United

States contributed 300 businesses, while

approximately 200 businesses were surveyed from

each of the other nations included in the study. This

structured approach ensured that the sample was

balanced across different sizes of organisations—

equally divided between small and large

companies—as well as evenly distributed among the

three identified sectors.

The target respondents within these organisations

were primarily individuals responsible for making IT-

related decisions, such as Chief Information Officers,

Chief Executives, or Information Systems Managers.

This was to ensure that the responses would reflect

knowledgeable perspectives on the utilisation and

impact of e-commerce within their respective

businesses. A total of 13% of the sampled population

responded to the survey, although the response rate

varied significantly by country, ranging from 8% to

39%. This variability in response rates indicates

differing levels of engagement with the survey across

the various countries, which could be influenced by

numerous factors including the perceived relevance

of the survey topics or the methodological approaches

used for engagement within different cultural and

business contexts. This stratified approach to

sampling and the focus on specific decision-makers

within the businesses aimed to provide a

comprehensive understanding of the e-commerce

landscape as experienced by significant industry

sectors across diverse economic environments.

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670

5 RESULT AND ANALYSIS

The accuracy and validity of the indices developed

for each independent and dependent variable were

evaluated. These composite quantifies are regularly

employed in social science investigation to more

accurately quantify factors for which no single

indication is both explicit and clear. In merging many

elements into a single measure, we built indices to

quantify their research variables. Averaged the

elements after grouping them into each index using

an additive approach.

In our models, also investigated the impact of

organization size, industry, and nation. To be certain

that industry globalization wasn't simply a measure of

growth, they included organization size in our

models. Organization size was quantified as the total

number of workers in the company to reduce data

variance. The influence of e-commerce on

performance is also expected to differ among

industries. For example, the industrial sector has

made extensive use of EDI to connect its operations

to its supply chain. There was also a control variable

for the nation. Earlier studies of EDI and IT usage at

the company level were mostly carried out in

industrialized countries, and often in a single-country

setting. The typical worldwide sales and purchasing

for global organizations was 45% and 40%,

respectively, matched to less than 1% for local

organizations.Analysis using ordinary least squares

was used to evaluate the hypotheses. The five

hypotheses were all verified.

Table 1: Factors related to firm efficiency factor loadings.

Factors

Market

0.831

Widened sales area

0.748

Increased international sales

0.665

Improved competitive position

0.644

Improved customer service

0.546

Coordination

Decreased procurement costs

0.845

Improved coordination with

suppliers

0.795

Efficiency

0.641

More efficient internal processes

0.825

Increased staff productivity

0.774

p < 0.10, ∗p < 0.05, ∗∗p < 0.01, ∗∗∗p 0.001

Table 2: Workforce Distribution by Role in Global and

Localized Industrial Sectors.

Manufacturin

Distributio

Financ

Tota

Industry &

Globalizatio

212

126

101

439

Low Global

(Bottom

25%)

140

244

450

Industry &

Firm Size

Small firms

(25-249)

364

357

365

1086

Large firms

(250+)

379

344

330

1053

Respondent job title

CEO, President, owner, managing

director

3.6

CIO, CTO, VP of IS

363

IS Manager, Director, Plane

759

35.5

Other IS Manager

449

COO, business operations Manager

103

4.8

CFO, Admin/ Finance manager

172

Other( IS analyst, other manager or VP)

217

10.2

Number of Employees

The Expansion of Global E-Commerce: Globalization’s Contributions Analyzed

671

25-99

624

29.2

100-199

321

200-499

733

34.3

500+

461

21.6

Response rate(%)

China

204

9.5

Brazil

200

9.4

Total

404

18.9

Table 3: Correlations Between Firm Globalization, EC Use,

and Business Performance Metrics.

Variable

1. Firm

Globalizat

ion

2. Scope

of EC use

0.1

3. B2B

Use

0.1

0.4

4. B2C

Use

0.0

0.3

Performan

5. Market

0.2

0.3

0.2

Efficiency

0.1

0.2

0.1

0.5

Coordinati

Controls

0.1

0.2

0.1

0.0

0.5

8 Size

(Employe

Strength)

0.4

0.1

0.0

0.1

Industry

(mfg)

0.2

0.5

0.0

0.2

0.0

0.3

Industry

(mfg)

0.4

0.3

0.0

0.5

11.

Industry

(fin)

0.1

0.5

0.4

0.1

0.0

0.1

0.0

0.5

0.4

Table 4: Analyzing Firm Performance: Role of

Globalization and E-Commerce Adoption.

Vari

able

Eff

icie

ncy

rdi

tio

E-

rce

sco

use

Eff

icie

ncy

rdi

tio

Eff

icie

ncy

rdi

tio

Fir

Glo

baliz

atio

.12

.10

.12

Size

total

emp

loye

0.0

.08

0.0

Indu

stry-

distr

ibuti

0.0

E-

com

mer

scop

e of

use

.21

B2B

.08

B2C

.07

Indu

stry-

fina

nce

0.0

.08

0.0

Cou

ntry-

Braz

0.0

.06

.05

.01

Cou

ntry-

Chi

0.0

.21

0.0

.01

7.8

17.

13.

8.9

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Sign

ifica

nce

Std.

error

0.9

Aclj

.R2

0.0

0.1

0.0

#P < 0.10. *p< 0.05. **p < 0.01.***p <0.001.

The analysis presented in Figure 3 robustly supports

the suite of hypotheses concerning the interplay

between globalization, e-commerce adoption, and

corporate performance metrics. Specifically,

Hypothesis 1 (H1) was substantiated, showing that

businesses more integrated into global markets are

likely to leverage e-commerce more extensively, with

a notable positive correlation (b = .13, p < .001).

Hypotheses H2a and H2b were also validated,

highlighting differentiated impacts of e-commerce

based on its orientation towards business-to-business

(B2B) or business-to-consumer (B2C) modalities,

with both showing significant usage uptakes in

globally active firms. Further, Hypothesis 3 (H3)

indicated that globalization exerts a pronounced

positive effect on organisational achievement across

efficiency, coordination, and market presence,

following adjustments for economic, sectoral,

national, and e-commerce influences. This suggests a

broad and substantial impact of global integration on

business outcomes. Hypotheses H4 and H5 were

similarly upheld, with findings supporting the

mediating role of e-commerce in enhancing corporate

reputation and performance. The application of B2B

e-commerce, in particular, markedly boosted all

performance categories, while B2C e-commerce

significantly fostered market and efficiency gains,

albeit with a negligible effect on coordination.

6 CONCLUSION

This study concludes the effects of globalization on

the expansion of e-commerce globally when the

quality of the business relationship is compromised,

we see various views for B2B and B2C e-commerce,

with multinational corporations highly frequently

participating in the previous and local companies in

the latter. The findings offer factual encouragement

for the claim that the upstream sector, which includes

B2B transactions, has a more global character while

the downstream sector, which involves B2C

interactions, has a more specialized or global

characteristic. The results of an empirical qualitative

e-commerce study argue that although B2B is seeing

global convergence linked to operational process

cooperation and integration, B2C is still more of a

local phenomenon due to variations in consumer

behavior and preferences. Although multinational

corporations are more likely to communicate with

other companies, small businesses are more likely to

offer products and services to consumers.

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