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Innovation-Driven E-Commerce Growth in the EU: An Empirical Study of the Propensity for Online Purchases and Sustainable Consumption

Author

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  • Elżbieta Roszko-Wójtowicz

    (Department of Economic and Social Statistics, University of Lodz, 90-214 Lodz, Poland)

  • Gagan Deep Sharma

    (Centre of International Programmes, Széchenyi István University, 9026 Győr, Hungary
    University School of Management Studies, Guru Gobind Singh Indraprastha University, New Delhi 110078, India
    Graduate Studies and Research, Lebanese American University, Beirut 1102 2801, Lebanon)

  • Barbara Dańska-Borsiak

    (Department of Spatial Econometric, University of Lodz, 90-419 Lodz, Poland)

  • Maria M. Grzelak

    (Department of Economic and Social Statistics, University of Lodz, 90-214 Lodz, Poland)

Abstract

The e-commerce sector has experienced significant growth in the past two decades, outpacing other economic sectors and contributing to sustainable consumption, increased labour productivity, competitiveness, consumer incomes, and GDP growth. This trend is expected to continue, making e-commerce a key driver of sustainable economic growth in Europe. This study aims to explore the relationship between a nation’s innovation level and its population’s inclination towards online shopping in various EU member states. It hypothesizes that higher innovation levels within a country lead to a greater tendency for online purchases. This study conducts a thorough analysis of the interplay between European economies’ innovation levels and the e-commerce market’s evolution. A composite innovation index was created using the Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) methodology, and panel data models were utilized to examine the dependencies, with data from Eurostat and the Global Innovation Index. The focus is on the period from 2019 to 2021, which was marked by unique market dynamics and the impact of the COVID-19 pandemic. The findings confirm the significant role of innovation in driving e-commerce expansion within the context of sustainable consumption, supporting the main hypothesis. This research also highlights the pandemic’s positive effect on the e-commerce sector. The pandemic-induced changes in consumer behaviour, particularly due to social isolation and crises in certain economic sectors, have emphasized the importance of online shopping. Notably, the most active online shoppers are identified in the 25 to 54 age group, revealing a key demographic trend.

Suggested Citation

  • Elżbieta Roszko-Wójtowicz & Gagan Deep Sharma & Barbara Dańska-Borsiak & Maria M. Grzelak, 2024. "Innovation-Driven E-Commerce Growth in the EU: An Empirical Study of the Propensity for Online Purchases and Sustainable Consumption," Sustainability, MDPI, vol. 16(4), pages 1-28, February.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:4:p:1563-:d:1338084
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    References listed on IDEAS

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