Global Journal of Management and Business Research, B: Economics and Commerce, Volume 21 Issue 5

Demographic and Cultural Factors Influencing the Adoption of B2C E-Commerce in SCO Region Sugarmaa Purevkhuu α & Javkhlan Munkhbold σ Abstract- Background: As one of the main intergovernmental organizations in Eurasia, Shanghai Cooperation Organization (SCO) is the one of the biggest e-commerce markets in the world. In this paper we studied the individual demographic and also national cultural factors of the e-commerce users of SCO countries and identified them from both national and personal sides. Method: We used 5 individual factors including gender, age, education, employment, income data from The World Bank Global FINDEX dataset and 6 cultural factors including power distance, individualism, masculinity, uncertainty, long term orientation data from Hofstede’s country’s cultural indexes to see the detailed definition of E-commerce users in SCO countries. Totally The World Bank Global FINDEX dataset included 11227 face-to-face interviews of SCO population. Results: For the individuals perspective this study results showed that main E-commerce users in SCO countries are employed young females with high education and high income. For the nationals perspective countries with high individualism with low uncertainty avoidance and more restraint are more active in E-commerce. But power distance, masculinity, long term orientation indexes did not show any significant results. Conclusions: SCO, as one of the main intergovernmental organizations in Eurasia, is taking measures to develop e- commerce in the region. However, SCO member states vary in terms of e-commerce due to dissimilar economic situations and cultural differences. Therefore it is important for the officials to see and learn the country’s differences and there is a certain vacancy for the males and older buyers that can be used as an key to open new market and develop E-commerce in the future. Shanghai Cooperation Organization (SCO), as one of the main intergovernmental organizations in Eurasia, is taking measures to develop e-commerce in the region. However, SCO member states vary interms of e-commerce experience due to dissimilar economic situations and cultural difference. The purpose of this paper is to examine the factors that affect B2C e-commerce adoption in the SCO region. The main objective of the study is to integrate the demographic characteristics with Hofstede’s cultural dimensions in order to determine the factors of e-commerce adoption among consumers in SCO member states. Result shows in SCO countries, e-commerce adoption is more spread amongst young females who are currently employed, and therefore have high education level and income. From the national cultures perspective SCO Author α σ : University of International Business and Economy, Beijing China. e-mails: sugarmaa_p@163.com, 15611203132@163.com member countries with high individualism, low uncertainty avoidance and low indulgence level have more e-commerce costumers than the other SCO member states . Keywords: e-commerce, B2C, developing countries, shanghai cooperation organization, SCO. I. I ntroduction ncreasing from 400 million in 2000 to more than 4.72 billion users as of April 2021 1 Digitalization speed, substantial growth of internet penetration, and recently, the restrictions because of COVID-19 has accelerated the e-commerce growth and according to United Nations Conference on Trade and Development (UNCTAD) news , the Internet is a worldwide network, which is used not only for communication but also for business. One of the internet benefits and tool to promote new business forms is e-commerce, which has entered our lives in the late 1990s and became essential during COVID-19 lockdowns. If in the 1990s e-commerce was just an economic activity conducted via electronic connections, in 2020 it was described as a process of production, sale, distribution and advertising of products online. (RolfT, 2006; UN ESCAP report, 2019) 2 , in 2019 the worldwide e-commerce sales raised up to $26.7 trillion, which is equivalent to 30% of global GDP, and 4% up from 2018.As e-commerce is characterized as one of the main criteria for information technology revolution (Nanehkaran, 2013) and heart of Sustainable Development Goal s 3 1 https://wearesocial.com/us/blog/2021/04/60-percent-of-the-worlds- population-is-now-online 2 https://unctad.org/news/global-e-commerce-jumps-267-trillion-cov id-19-boosts-online-sales 3 http://sdg.iisd.org/news/unctad-reviews-covid-19-impact-on-e-com merce-digital-trade , many researchers have developed e-commerce adoption and implementation frame works related to consumers and online enterprises. Consumer related researches are focusing on behavioral issues and segmentation; the researches on enterprises are mostly analyzing store features, credibility and reputation, and online shopping tools (Farid et. al, 2016). However, the prevailing amount of these e- commerce studies are focusing on consumers and enterprises of developed countries, and very few are conducted on developing or least developed countries. I © 2021 Global Journals 25 Global Journal of Management and Business Research Volume XXI Issue V Version I Year 2021 ( ) B