Abstract
A systematic cross-country analysis of e-commerce activity reveals that although physical infrastructure explains much of the variation in basic Internet use, e-commerce activity also depends significantly on a supportive institutional environment. Chief among the characteristics of such an environment are national respect for the “rule of law” and, secondarily, the availability of credible payment channels such as credit cards. These results suggest that an institutional environment that facilitates the building of transactional integrity is critical to the development of e-commerce.
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*Joanne Oxley is Assistant Professor of Corporate Strategy and International Business at the University of Michigan Business School.
**Bernard Yeung is the Abraham Krasnoff Professor of International Business and Professor of Economics at the Stern School of Business, New York University.
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Oxley, J., Yeung, B. E-Commerce Readiness: Institutional Environment and International Competitiveness. J Int Bus Stud 32, 705–723 (2001). https://doi.org/10.1057/palgrave.jibs.8490991
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DOI: https://doi.org/10.1057/palgrave.jibs.8490991