Driving Factors for E-Commerce: Gulf Region Review

ABSTRACT Despite fact that is likely to have far-reaching implications for international market, until now only a few studies have explored growth in Gulf region from an international perspective. This paper reviews and explores growth internationally with a particular focus on Gulf region. It examines some of challenges faces by looking at both local and global factors with a particular focus on area of technological advancement. Based on review, a list of driving factor s that may contribute to evolvement in region has been drawn up along with recommendations and suggestions for future research. INTRODUCTION An early analysis of web-related information economics was given by Benjamin & Wigand (1995), who argued that has a great potential for efficiency gains along whole industry value chain, primarily because of transaction cost savings. The Web not only can help to reduce costs and add value for existing customers, but it also has a potential role in customer acquisition, and in case of a Web startup, this role is crucial (Bertschek, Fryges & Kaiser, 2006). The is also an important advertising medium (Hofacker, 2001). Drucker (2002) argued that truly revolutionary impact of is e-commerce (pp. 3 -4). E-commerce can be described as the sale and purchase of goods or services over Internet (Chase Paymentech, 2007), use of IT to allow direct selling and automatic processing of purchases between parties using internet (Expedite Email Marketing, 2004) or substitution of information for physical business processes (Weill & Vitale, 2001). An increasing volume of E-commerce research has been conducted for a diverse range of areas in terms of application areas, technological aspects, support and implementation (Ngai & Wat, 2002) as well as significance of cost aspects in relation to development (Cohen & Kallirroi, 2006). According to Lin, (2007) is one of those rare cases where need to change and emerging technologies come together to re-engineer way in which business is conducted, improving processes efficiency, allowing for flexibility, working more closely with suppliers, and catering for needs and expectations of customers. It allows companies to select best suppliers regardless of geographical location and to widen scope of their market to global market (Soopramanien, Fildes & Robertson, 2007). Its evolution goes through several stages of growth according to Chan & Swatman (2004). They proposed a four-stages model in relation to B2B E-commerce (table 1): stage 1 : growth: initial e-commerce; stage 2: centralised E-commerce; stage 3: looking inward for benefits: and stage 4: global e-commerce. The readiness for or e-readiness, however, may depends on state of play of a country's information and communications technology (ICT) infrastructure and ability of its consumers, businesses and governments to use ICT to their benefit (EIU, 2008). E-commerce can be shaped by variety of factors such as economic, political and social environments in addition to quality of ICT infrastructure, however average e-readiness has risen in 2008 in comparison with 2007 (EIU, 2008). Such growth of can also be attributed to unique features of and Web such as ubiquity, global reach, universal standards, richness, interactivity, information density, personalization and customization factors (Laudon &Laudon, 2007). Internationally, many developments have occurred in last 10 years in world of (IGW, 2007) that impacted on business, government and personal computing. Washington-based Software & Information Industry Association' compiled top 10 list of developments that have most impacted e-commerce. …