Barriers to global electronic commerce: A cross-country study of Hong Kong and Finland

Abstract

So far electronic commerce has primarily been limited to electronic business-to-business transactions and small, but quickly growing, consumer-oriented activities on the Internet, such as electronic advertisements mated with the traditional mail-order operations. What lies ahead in the future is a concept of true global electronic commerce (GEC), in which firms will exploit a virtual value chain to migrate much of their value-adding activities from the physical marketplace to the virtual marketplace. The capability for business concerns to be able to reach out to a global business community at a relatively small cost is very attractive and promises to transform international business. Despite this realization, it has become increasingly evident that the proliferation of GEC is dependent on resolution of a myriad of technical, organizational, economic, cultural, political, and legal issues. In this study, field studies of 10 companies in Hong Kong and Finland were conducted with an eye toward identifying the major barriers that have hindered or slowed down the wide acceptance of electronic commerce across borders. In addition to several country-specific barriers to GEC, resistance to change, lack of education about the potentials of GEC, and lack of flexible software were found to be the key inhibitors to the orderly acceptance and deployment of computer-mediated commerce at the global level.