E-Commerce Patterns in South Asia: A Look Beyond Economics

Abstract

Conflicting and complex forces are shaping the diffusion patterns of the Internet and e-commerce in South Asia. Drawing upon the literature on institutional theory, we explore the drivers and inhibitors of the Internet in South Asian countries. We examine the influence of the three pillars of institutions (Scott 1995) on the digital world of South Asia. The paper discusses how regulatory institutions such as strength of rule of laws, existence of laws to govern transaction in the digital world and nature of rule making institutions; normative institutions such as emphasis on established relationships over Internet-driven efficiency, existence of social forces against investment in Internet related projects; and cognitive institutions such as sharing culture and habits related to economic transactions have shaped the diffusion patterns of the Internet and e-commerce in South Asia.

Keywords: E-commerce, South Asia, Institutions

JEL Classification: O33