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The Impact of Innovation Systems on E-commerce Capacity

Author

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  • Sotirios Zygiaris

    (Prince Mohammad Bin Fahd University – PMU)

Abstract

For improved and sustained growth, world economies are now moving towards innovation systems. However, the impact of these innovation systems on economies within the economic paradigm is still unknown. This study aims to investigate how innovation systems in various economies influence E-commerce capacity. However, various policymakers plan to design and implement policies that meet the changing dynamics of innovation systems. However, the fact that these policies have an impact on E-commerce is mostly not taken into consideration. This study further aims to understand whether policymakers should consider the enabling side effects and the impact assessment derived from innovation systems when they design E-commerce policies? By utilizing quantitative analysis, the study evaluates the innovation enabling factors for E-commerce advancement. The innovation system factors, institutions, human capital, infrastructure, market sophistication, knowledge, and creative outputs construct the set of independent variables that evaluated against the dependent variable that is E-commerce capacity. Through structural equation modeling and confirmatory factor analysis of the Global Innovation Index data, the study concludes that human capital and market sophistication are significant enabling factors to E-commerce when innovation system policies are applied. In addition, infrastructure and information communication technology are essential factors in advancing E-commerce capacity. This work recommends that policymakers should assess the impact of existing innovation policies related to human capital, empowerment, and market sophistication on E-commerce capacity.

Suggested Citation

  • Sotirios Zygiaris, 2022. "The Impact of Innovation Systems on E-commerce Capacity," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(1), pages 276-289, March.
    • Handle: RePEc:spr:jknowl:v:13:y:2022:i:1:d:10.1007_s13132-021-00724-x
    DOI: 10.1007/s13132-021-00724-x
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    References listed on IDEAS

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    Cited by:

    1. Marti, Luisa & Puertas, Rosa, 2023. "Analysis of European competitiveness based on its innovative capacity and digitalization level," Technology in Society, Elsevier, vol. 72(C).
    2. S nziana-Maria Rindasu & Liliana Ionescu-Feleaga & Bogdan-Stefan onescu & Ioan Dan Topor, 2023. "Digitalisation and Skills Adequacy as Determinants of Innovation for Sustainable Development in EU Countries: A PLS-SEM Approach," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 25(S17), pages 968-968, November.
    3. Ying Song & Lu Li & Stavros Sindakis & Sakshi Aggarwal & Charles Chen & Saloome Showkat, 2024. "Examining E-Commerce Adoption in Farmer Entrepreneurship and the Role of Social Networks: Data from China," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 8290-8326, June.
    4. Antonio Fernández-Portillo & Nuria Ramos-Vecino & Adelaida Ramos-Mariño & Gabriel Cachón-Rodríguez, 2024. "How the digital business ecosystem affects stakeholder satisfaction: its impact on business performance," Review of Managerial Science, Springer, vol. 18(9), pages 2643-2662, September.
    5. 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 1-25, February.

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