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Endogenous inclusive development of e‐commerce in rural China: A case study

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  • Ping Gao
  • Yajun Liu

Abstract

This paper advances understanding of the process and mechanism of endogenous inclusive development of information and communications technology (ICT) solutions. We present a case of a bottom of the pyramid (BoP) community in a rural area in China, which has achieved sustainable furniture e‐commerce development independently. The case study demonstrates that e‐commerce development in a disadvantaged area can start from a seed business model targeting a niche market with simple products, which will incur low costs and low skill requirements for entrepreneurs, and is thus able to scale up within local BoP community. In the second stage, BoP entrepreneurs must engage in intensive learning from the seed entrepreneur and other early movers to gain the required capabilities for operating the seed business model. In the last stage, BoP entrepreneurs need to focus on business model innovation and scoping, and form a local value chain and ecosystem for e‐commerce development. Throughout the e‐commerce development process, a seed entrepreneur plays specific critical roles at each stage. Practical implications for the BoP community to take advantage of ICT innovation to achieve sustainable development are given.

Suggested Citation

  • Ping Gao & Yajun Liu, 2020. "Endogenous inclusive development of e‐commerce in rural China: A case study," Growth and Change, Wiley Blackwell, vol. 51(4), pages 1611-1630, December.
    • Handle: RePEc:bla:growch:v:51:y:2020:i:4:p:1611-1630
    DOI: 10.1111/grow.12436
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    1. Vakulenko, Yulia & Arsenovic, Jasenko & Hellström, Daniel & Shams, Poja, 2022. "Does delivery service differentiation matter? Comparing rural to urban e-consumer satisfaction and retention," Journal of Business Research, Elsevier, vol. 142(C), pages 476-484.
    2. Lijuan Huang & Yi Huang & Raoyi Huang & Guojie Xie & Weiwei Cai, 2022. "Factors Influencing Returning Migrants’ Entrepreneurship Intentions for Rural E-Commerce: An Empirical Investigation in China," Sustainability, MDPI, vol. 14(6), pages 1-23, March.
    3. Lijuan Huang & Guojie Xie & Raoyi Huang & Guokai Li & Weiwei Cai & Chrysostomos Apostolidis, 2021. "Electronic Commerce for Sustainable Rural Development: Exploring the Factors Influencing BoPs’ Entrepreneurial Intention," Sustainability, MDPI, vol. 13(19), pages 1-21, September.
    4. Lili Li & Yiwu Zeng & Yanmei He & Qiuxia Qin & Jianhao Wang & Changluan Fu, 2022. "Developing Village-Based Green Economy in an Endogenous Way: A Case Study from China," IJERPH, MDPI, vol. 19(13), pages 1-22, June.
    5. Lili Li & Linyi Zheng & Zhonggen Zhang & Yixiang Song, 2024. "How to trigger and strengthen the positive impact of the internet on the income of farmers in the region? A case from China," Electronic Commerce Research, Springer, vol. 24(2), pages 1407-1433, June.
    6. Haiqiang Zhu & Junhu Tang & Xia Xie & Zhaolong Ding & Lu Gong, 2024. "A Coordination Analysis on Rural Revitalization and Tourism High-Quality Development along the Silk Road Economic Belt, China," Land, MDPI, vol. 13(8), pages 1-16, July.
    7. Chen, Chen & Gan, Christopher & Li, Junpeng & Lu, Yao & Rahut, Dil, 2023. "Linking farmers to markets: Does cooperative membership facilitate e-commerce adoption and income growth in rural China?," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 1155-1170.
    8. Fan Wang & Mingfeng Wang & Shichen Yuan, 2021. "Spatial Diffusion of E-Commerce in China’s Counties: Based on the Perspective of Regional Inequality," Land, MDPI, vol. 10(11), pages 1-17, October.

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