Multi-Country Analysis of E-commerce Adoption: The Impact of National Culture and Economic Development

Abstract

Background: The effect of national culture on e-commerce adoption and usage has yet to be thoroughly examined. This multi-country study examines the influence of Hofstede’s cultural dimensions on e-commerce adoption. It also explores the moderating effect of economic development on the relationships between national culture factors and e-commerce adoption. Method: Secondary data, collected from reputable organizations on sixty countries, are used to test the hypotheses. Correlation, linear regression, cluster analysis, and ANOVA were used to assess the hypotheses presented in the model. Results: The data supported our hypotheses on the direct relationships between national culture factors namely power distance, individualism, long term orientation, and indulgence, and e-commerce adoption. The regression analysis showed that individualism is the most important of all culture factors. The results also indicated that power distance and individualism have different impact on e- commerce adoption, depending on the level of economic development. Conclusions: This study contributes to the growing empirical base of literature on e-commerce and national culture. It validated the importance of a cultural perspective in explaining e-commerce adoption at the national level. It also demonstrated the importance of economic development and its role in shaping the relationships between national culture and e-commerce. Keywords: E-Commerce Adoption, National Culture, Cross-Country, Indulgence, Economic Development.